Internal Accounts Policies and Procedures Manual

Transcription

1 Internal Accounts Policies and Procedures Manual Internal Funds Office Phone: Fax:

2 1. INTRODUCTION... 4 A. INTERNAL FUNDS: CCPS BOARD POLICY B. INTERNAL FUNDS ARE DESCRIBED AS: DUTIES AND RESPONSIBILITIES... 6 A. PRINCIPAL OR DIRECTOR S RESPONSIBILITIES... 6 B. BOOKKEEPER S RESPONSIBILITIES... 7 C. ACCOUNTING DEPARTMENT S RESPONSIBILITIES ACCOUNTING SYSTEM... 8 A. INTERNAL FUNDS... 8 B. LOCATIONAL FUNDS... 8 C. DUAL RECORDS... 8 D. COMPUTER UTILIZATION... 8 E. ACCOUNTING SOFTWARE... 9 F. DESCRIPTIONS... 9 G. BACKUP OF DATA... 9 H. STANDARD CHART OF ACCOUNTS BANK AND CASH ACCOUNTS A. CONTROL OF FUNDS: CCPS BOARD POLICY B. AUTHORIZED SIGNATURES: CCPS BOARD POLICY C. DEPOSITORY FOR INTERNAL FUNDS: CCPS BOARD POLICY D. ESTABLISHING E. AUTHORIZED CHECK SIGNERS F. DUAL SIGNATURES FOR CHECKS G. CHANGING BANKS H. RECONCILIATION I. INVESTMENTS CHANGE FUNDS AND PETTY CASH FUNDS A. CHANGE FUND: CCPS BOARD POLICY B. PETTY CASH FUND: CCPS BOARD POLICY INCOME / RECEIPTS A. COLLECTION OF MONIES B. REPORT OF MONIES COLLECTED C. RECEIPT AND DEPOSIT DATES D. BANK DEPOSITS E. NON-SUFFICIENT FUNDS (NSF): CHECKS CCPS BOARD POLICY PURCHASING A. PURCHASING: CCPS BOARD POLICY B. REQUIREMENTS C. RESPONSIBILITY D. VENDOR TOLERANCE MONITORING E. PURCHASE ORDERS F. CONTRACTS/ CONSULTANT AGREEMENTS G. USE OF CREDIT CARDS THROUGH INTERNAL FUNDS EXPENSES / DISBURSEMENTS A. EXPENDITURES FROM INTERNAL FUNDS: B. DISBURSEMENT DOCUMENTATION Internal Funds Procedures Manual 1 04/10/2015

3 C. RESTRICTED EXPENDITURES D. PAYMENTS TO VENDORS FROM INTERNAL FUNDS E. NEW VENDOR SETUP F. SUPPLIER/VENDOR LIST G. SCHOOLCASH ONE-TIME VENDOR FEATURE: H. CHECK REQUISITIONS OR CHECK ISSUED STATEMENT I. VOIDED CHECKS J. SKIPPED CHECKS K. OUTSTANDING CHECKS L. UNCLAIMED PROPERTY EQUIPMENT TANGIBLE PROPERTY A. ACQUISITION OF EQUIPMENT EQUAL TO $1,000 OR MORE B. EQUIPMENT IS OBSOLETE OR OF NO VALUE INVENTORY A. INVENTORY OF TANGIBLE PROPERTY: CCPS BOARD POLICY B. PROPERTY ACQUISITION AND CONTROL DONATIONS A. PUBLIC GIFTS TO THE SCHOOLS: CCPS BOARD POLICY B. DONATION PROCEDURE STUDENT FEES A. STUDENT FEES: CCPS BOARD POLICY B. ADULT STUDENT FEES FOR POSTSECONDARY PROGRAMS FUND-RAISING ACTIVITIES A. STUDENT FUND RAISING, PUBLIC SOLICITATION & SALES BY SPONSORED GROUPS: CCPS BOARD POLICY B. TWO (2) TYPES OF FUNDRAISING ACTIVITIES ARE DELINEATED C. GENERAL D. BOOSTERS CLUBS COOPERATIVE ACTIVITIES SCHOOL STORE A. CHANGE FUND B. MONIES RECEIVED C. EXPENDITURES D. INVENTORY E. SALES TAX F. PROFITS TICKET SALES A. SALE OF TICKETS B. ACQUISITION OF TICKETS C. REPORT OF TICKETS SOLD OR ADMISSIONS: YEARBOOKS A. YEARBOOK CATEGORY B. SALES TAX C. EXPENDITURES AND PURCHASES D. MONIES COLLECTED E. ADVERTISING Internal Funds Procedures Manual 2 04/10/2015

4 18. FACULTY FUND / SUNSHINE-SOCIAL/ VENDING A. DEPARTMENT/COMMITTEE (GROUPS OF ADULTS) UMBRELLA TRANSFERS, MODIFICATIONS, ADD A RECORD A. TRANSFERS B. MODIFICATIONS C. TRANSFER REPORT AND MODIFICATION LISTINGS D. ADD A RECORD MONTHLY REPORTS A. REQUIRED REPORTS B. DESCRIPTIONS OF REPORTS C. BANK RECONCILIAITON D. BANK RECONCILIATION OUT OF BALANCE E. NSF CHECKS F. BOOKKEEPING ERRORS AND BANK ERRORS RETENTION OF RECORDS A. STATE REQUIREMENTS B. DISTRICT REQUIREMENTS: CCPS BOARD POLICY AUDITS A. REQUIREMENTS: CCPS BOARD POLICY B. AUDIT OBJECTIVES FEDERAL TAX A. FEDERAL EMPLOYER TAX IDENTIFICATION NUMBER (FEIN) SALES TAX A. SALES TAX EXEMPT CERTIFICATE NUMBER B. REGISTERING WITH STATE OF FLORIDA TO PAY SALES TAXES BEGINNING OF YEAR PROCEDURES A. PROCEDURES B. JULY BANK RECONCILIATION C. ESTABLISHMENT OF PETTY CASH AND CHANGE FUNDS (REFER TO SECTION 5) YEAR-END PROCEDURES A. CLOSING FISCAL YEAR B. ROLLOVER DISTRICT WIDE SELECTED SUBJECTS OF INTEREST TO SCHOOLS A. LOCATIONAL BUDGETS B. REIMBURSEMENTS FROM LOCATIONAL BUDGET TO INTERNAL FUNDS C. INTERNAL FUNDS TRANSFERRED TO LOCATIONAL BUDGET DEFINITIONS ADDENDUMS, FORMS, & STEP-BY-STEP GUIDES Internal Funds Procedures Manual 3 04/10/2015

5 1. INTRODUCTION This manual contains procedures and forms for the financial accounting of all funds received or disbursed for school sponsored activities. These funds are commonly known as Internal Funds. THE PURPOSE OF THIS MANUAL IS TO PROVIDE YOU GREATER DETAIL REGARDING THE SCHOOL DISTRICT OF COLLIER COUNTY, FL, ESTABLISHED POLICIES AND PROCEDURES. A. INTERNAL FUNDS: CCPS BOARD POLICY 6610 Governance Provisions The collecting and expending of school internal accounts shall be in accordance with Florida statutes, State Board of Education rules, Board policies, and the Financial and Program Cost Accounting and Reporting for Florida Schools manual published by the Florida Department of Education. Sound business practices shall be observed in all transactions. The District's Internal Funds Policies and Procedures Manual shall provide guidance to the schools. B. INTERNAL FUNDS ARE DESCRIBED AS: Definition Internal funds are defined as all monies collected and disbursed by personnel within a school for the benefit of the students or a school-sponsored activity. Internal funds shall be considered as unbudgeted public funds under the control and supervision of the School District. The Superintendent shall develop administrative procedures for the implementation of this policy. Internal Funds shall be accounted for on the same fiscal year basis as all other District funds and are considered unbudgeted public funds under the control and supervision of the School District. No school organization shall make expenditures that exceed the cash resources available to that organization. All funds handled by District employees shall be included in and become part of Internal Funds, unless accounted for in the District level accounting system. An adequate system of internal controls must be maintained in order to safeguard the Internal Funds. School Internal Funds shall be expended for the purpose for which they were collected and in accordance with procedures established by the State Board of Education, and standard public accounting procedures as provided by the Superintendent and the Accounting Department of the School District of Collier County, FL. Monthly financial reports shall be made in approved written form to provide the school's administration with financial information necessary for decision making. An annual report will provide data for inclusion of internal funds in the district's annual financial statement. Internal Funds Procedures Manual 4 04/10/2015

6 Chapters 119 and 257, F.S., provide that no public official may mutilate, destroy, sell, loan or otherwise dispose of any public record without the consent of the Bureau of Records and Information Management of the Department of State. Provided applicable audits have been released, records may be disposed of in accordance with procedures established by Department of Records and Forms Management. Examples of such records for internal funds could include check requisitions and documentation, canceled checks, recap of collections, journals, ledgers, financial reports, purchase orders, payroll records, and serialized forms. Procedures for destruction of records shall be in accordance with Chapters 119 and 257, F.S. An adequate system of internal controls shall be maintained in order to safeguard the assets of the school internal funds. Internal Funds Procedures Manual 5 04/10/2015

7 2. DUTIES AND RESPONSIBILITIES A. PRINCIPAL OR DIRECTOR S RESPONSIBILITIES Each principal or other person responsible for an Internal Fund shall make an annual report on the status of such fund to the Accounting Department Accounting. This report shall indicate opening balances, receipts by source, expenditures by type, and closing balances. This report shall be made prior to July 15 of each year for the school year just ended and shall be reviewed by the Accounting Department. Any exceptions will be preauthorized by the Accounting Department. The Principal or Director shall: 1. Be held accountable for the handling of all phases of Internal Funds accounting in the school/department. 2. Shall be responsible for the approval for the existence of all club and class activities. 3. Shall control the fundraising activities conducted in the name of the school, and assure that the purposes are worthwhile. 4. Use a uniform system of accounting as directed by the Superintendent. 5. Be directly responsible for the conduct of student financial activities in accordance with the current policies, rules, and procedures of the District. 6. Shall be notified immediately of any errors in deposits or disbursements and shall take appropriate action to effect correction. 7. Is responsible for seeking reimbursement for any unpaid check returned by the bank. 8. Has authority to write-off insufficient fund (ISF) checks. 9. Is fully responsible for all purchases and purchase commitments requiring present or future disbursements of internal fund monies. 10. Submit timely month-end and annual reports of the Internal Funds to the Accounting Department. 11. At the close of the school year the annual report shall be prepared as district procedures provide, and shall be attested to by the principal and the preparer by their signatures as to its accuracy in reflecting the year's activity and year-end balances to be included in the District Annual Financial Report. 12. Shall maintain an adequate system of internal controls in order to safeguard the assets of the school internal funds. Internal Funds Procedures Manual 6 04/10/2015

8 B. BOOKKEEPER S RESPONSIBILITIES The Bookkeeper shall: 1. Be responsible for all Internal Funds under the direction of the Principal/Director. 2. Maintain records and follow procedures as adopted by the School District. 3. All money collected must be deposited intact to a depository as frequently as feasible and as dictated by sound business practices. IN ANY EVENT, FUNDS COLLECTED MUST BE DEPOSITED WITHIN FIVE (5) WORKING DAYS AFTER RECEIPT. 4. Shall immediately notify Principal/Director or designee of any errors in deposits or disbursements and shall take appropriate action to effect correction. 5. Shall maintain an adequate system of internal controls in order to safeguard the assets of the school internal funds. C. ACCOUNTING DEPARTMENT S RESPONSIBILITIES The Accounting Department shall: 1. Review procedures for assuring compliance with all applicable rules, regulations, statutes, and policies concerning Internal Funds. 2. Contract with an external CPA firm to complete the annual audit of Internal Funds for each school/department and report findings and recommendations to the Principals/Directors, Superintendent, and District School Board. 3. Monitor monthly activity and report status to appropriate District staff. 4. Provide technical support on policies, regulations, and statutory changes. 5. Provide training to new and existing Bookkeepers and Principals/Directors on proper Internal Funds procedures. 6. Recommend accounting procedures and forms. 7. Maintain a current manual documenting applicable regulations, policies, and procedures. Internal Funds Procedures Manual 7 04/10/2015

9 3. ACCOUNTING SYSTEM A. INTERNAL FUNDS Internal Funds activity is accounted for at each of the locations (Schools/Departments) that have internal accounts activity. Each School/Department maintains its own separate bank account and chart of accounts. All locations shall utilize the District approved computer programs. Cash receipts, cash disbursements, and other transactions are input as they occur and financial statements are produced by the system at the end of each month. One set of these reports is submitted to the Accounting Department by the 15th of the subsequent month. Timely completion and submission of the data is critical. The Principal/Department Head needs to know the status of the Internal Accounts on a timely basis to make informed decisions. In addition, late submissions result in an audit exception. B. LOCATIONAL FUNDS Locational funds are accounted for in the District s Budget, Purchasing, & Accounting Departments. Locational budgets are structured by source (Federal, State, and Local) and specific appropriation. Each School/Departments are allotted locational funds and oversees the use of these funds. However, all transactions are recorded and maintained in the Administrative Offices using the District s accounting program, uniform chart of accounts, and bank accounts. C. DUAL RECORDS There is to be only one set of records that is maintained on a computer system using the District approved program for Internal Funds, in accordance with good internal controls and sound business practices. Maintaining dual records, including manual books, is not necessary. This causes a duplication of effort and jeopardizes the integrity of the accounting system. Dual records are not recommended. This provision is not intended to prohibit schools from supplementing information by means of automated spreadsheets or word processing applications. D. COMPUTER UTILIZATION The computerized accounting system provides a wealth of information about transactions within Internal and Locational funds. The system, in part, is dependent upon proper utilization of data. The computer system affords a great deal of flexibility in maintaining records and provides excellent reporting and safeguards. All records for the District shall be maintained on a computer system utilizing this District approved program. Internal Funds Procedures Manual 8 04/10/2015

10 E. ACCOUNTING SOFTWARE The District offers an internet based software program titled SchoolCash.net. The accounting software is the approved program for use in all locations that handle Internal Funds. The licensing process is handled and coordinated through the Accounting Department for the District. All locations shall utilize this software for the official accounting records. The system is designed to afford consistent and adequate record keeping. To accompany documentation various spreadsheet programs, word processing, and other software programs can be valuable tools for maintaining Internal Funds records. Each location is responsible for recording entries as frequently as possible, but not less than weekly. The Accounting Department shall assist each school as needed in resolving any software problem that may be encountered. The school/departments should not contact the software company directly. F. DESCRIPTIONS All entries into the computerized accounting system shall contain the best description possible. There may be some space limitations; therefore, clear abbreviations are permissible. G. BACKUP OF DATA Computers are versatile tools and have a wide range of abilities in processing large volumes of data. All data is backed-up/saved through servers at the District level or through the software provider. H. STANDARD CHART OF ACCOUNTS Internal Funds are classified first by Umbrellas and then by Categories. The STANDARD CHART OF ACCOUNTS can be found in the Addendum section of this manual. 1) UMBRELLAS The umbrella is standard for all locations. All schools must use the following umbrellas for all accounts: Cash Float & Suspense Athletics Music Classes Clubs (Groups of Students) Departments/Committees (Groups of Adults) Goodwill/Benevolence Trust Funds Tuition/Fees Trust Funds Production Workshops School wide Events & Operations Investment Internal Funds Procedures Manual 9 04/10/2015

11 a. CASH FLOAT & SUSPENSE 0.0 Cash Float and Suspense Accounts are standardized for the District. When the cash box categories are used they will appear in the negative simulating the fact that these funds are no longer in the checking account but are a part of the school s overall bookkeeping records. These negative figures should always match/balance to the Cashbox Module in the SchoolCash program. Cash Account categories currently are as follows: * Petty Cash Locational * Petty Cash Internal * Change Fund A * Change Fund B * Change Fund C * Change Fund D * Change Fund E These Suspense Account categories are used for the purpose of reconciliation and are temporarily holding one side of a transaction. Suspense Account categories currently are as follows: * Bank Account Transfers * Bank Errors Pending * Credit Card Transactions b. ATHLETIC 1.1 Athletic encompasses all extra-curricular sport related activities. It is to be utilized for all transactions involving athletic functions. Specific athletic clubs should be classified as athletics, rather than the alternative classification of clubs. All revenue and expenditures involving athletic business transacted at the school level shall be recorded in categories under this umbrella. Categories can be sorted by sport, skill level, and/or gender. Athletic Booster Clubs which operate outside of Internal Funds as a separate entity are considered a Cooperative Organization. All Cooperative Organizations or Boosters for Athletics must follow the guidelines as listed in the Cooperative Activities Section 14 of this manual. c. MUSIC 2.2 Music encompasses all extra-curricular music related activities. Proceeds from activities of musical organizations; donations to these groups; and their expenses for supplies and trips shall be recorded in this umbrella. Music category accounts are to be utilized for band or orchestra activities, music class functions, uniform maintenance, and instrument related costs. Internal Funds Procedures Manual 10 04/10/2015

12 Collections from students for rental or maintenance of uniforms or instruments shall be recorded in separate account categories in this classification, or in (tuition/fees) trust funds if required or restricted as to use. Transportation for high school band members made in connection with athletic events may be paid through the Athletic Umbrella category accounts. Music & Band Boosters which operate outside of Internal Funds as a separate entity are considered a Cooperative Organization. All Cooperative Organizations or Boosters for Band must follow the guidelines as listed in Cooperative Activities Section #14 of this manual. d. CLASSES 3.3 Classes are groups of students based on grade level, graduating year or subject area. Class accounts are to be utilized for transactions involving a particular grade class of students such as the 6 th grade, Class of 2012, or science class. This type would also include teacher class accounts such as Ms. Smith s class. Approval for the existence of all class activities is the responsibility of the principal. Class monies shall be expended for the benefit of the class or for purposes designated by the class that participated in generation of the revenue. Any remaining balance in the account of a class that has graduated shall be transferred to the general miscellaneous account at the discretion of the principal. e. CLUBS 4.4 Clubs are groups of students with a common interest or purpose. Approval for the existence of all club activities is the responsibility of the principal. Clubs traditionally have members and a sponsor. Any remaining balance in the account of an inactive student organization shall be considered as belonging to the general miscellaneous account and shall be closed at the end of the following school year. f. DEPARTMENT/COMMITTEES 5.5 Department/Committee accounts are for those activities that support a group of adults within a common subject area or function. Examples of departments are Media Department, Physical Education, 1st Grade Team, or Parent/Teacher Association. Departments may be structured similar to classes and shall conduct financial activities subject to the above. g. GOODWILL/BENEVOLENCE TRUST FUNDS 6.6 The donor or person providing the funds has restricted the use of the money or it was collected for a designated purpose. Each location must identify all trusts. There should never be a miscellaneous trust since all money is identifiable for a particular purpose. Internal Funds Procedures Manual 11 04/10/2015

13 In accordance with the Florida Department of Education Red Book Chapter 8: Funds collected for a specific, restricted purpose shall be accounted for in a trust account. Trust funds shall be expended only for the purpose for which collected. When the purpose of the trust fund has been accomplished or becomes inoperative, unused trust funds shall be returned to the person(s) from who collected, if practicable. Donors may designate an alternative purpose. At no time shall a trust account have a deficit. h. TUITION/FEES TRUST FUNDS 7.7 Tuition/fee trust funds are when amounts are required to maintain a program or offer restitution. Funds collected for the School District, such as out-of-state tuition, adult matriculation and tuition or course fees including lab fees and testing. Fees required for reimbursement for lost/damage textbooks or telephone charges. Sales Tax collected for the State is also a trust account. Fees collected for parking permits, locks, and uniforms are held in trust until expenses are paid before profits are transferred to a beneficial party. i. PRODUCTION WORKSHOPS 8.8 The Production Workshops umbrella encompasses live vocational classes earning revenue derived from production work of the program. On-the-job Career Training shops providing services to clients. Revenue is to sustain each clinical setting. Categories are to be utilized for all transactions involving these types of functions. Some examples of production workshops are Culinary Arts, Auto Mechanics, Cosmetology, or Childcare. j. SCHOOL WIDE EVENTS AND OPERATIONS 9.9 School Wide Events and Operations typically are categories that benefit all students. These categories encompass funds which are to be utilized for the general welfare of the entire student body. The use of separate categories for fundraising events is good business practice to monitor the financial status of each activity. Separate categories shall be maintained for a School Store. Merchandise sold to students to accommodate classroom instruction or enhance school spirit may be sold in a school store. School Store accounts are to be utilized for all transactions involving school store functions. (See the School Store section #15 of this manual for cash handling procedures). Internal Funds Procedures Manual 12 04/10/2015

14 The Principal s Account is used at the principal s discretion. Proceeds into this category are generally derived from commission whereas original product or services was disbursed such as school pictures, vending machines, or after-school programs. Although it is intended to be used to benefit all students, it can be used for faculty/staff incentives. This umbrella also includes other categories that do not fit into any of the other areas such as interest earned, bank charges/fees. k. INVESTMENTS 10.0 Investment bank accounts, otherwise known as savings accounts, are recorded as a separate category in the school s Chart of Accounts. The SchoolCash software program displays the investment bank account category as a negative figure simulating the fact that these funds are not in the checking account but are a part of the school s overall Chart of Accounts. These investment categories should always match/balance to the relating bank accounts in the SchoolCash program. A separate bank reconciliation is required for investment accounts. Internal Funds Procedures Manual 13 04/10/2015

15 4. BANK AND CASH ACCOUNTS A. CONTROL OF FUNDS: CCPS BOARD POLICY 6610 Internal funds are defined as all monies collected and disbursed by personnel within a school for the benefit of the school or a school-sponsored activity. Internal funds shall be considered as unbudgeted public funds under the control and supervision of the School District. B. AUTHORIZED SIGNATURES: CCPS BOARD POLICY 6610 Bank Accounts Bank accounts are authorized to extent necessary for school activities in accordance with Policy Such bank accounts shall honor checks written on the Internal Funds and signed by the principal/administrator and another School District employee identified by the principal/administrator. (Two signatures are required) The principal/administrator shall identify, whenever practical, a third building administrator to sign in the event of the principal/administrator s absence. C. DEPOSITORY FOR INTERNAL FUNDS: CCPS BOARD POLICY 6140 All public funds shall be deposited in a qualified public depository, unless exempt under the laws of the State. D. ESTABLISHING Each school shall have only one checking account which shall be entitled "(SCHOOL NAME) Internal Fund, The School District of Collier County Florida," or alternative which clearly identifies the school and school district. This account title must be imprinted on all internal fund checks and deposit slips. All monies received by the school will be deposited intact as collected into this account and all disbursements will be made by checks drawn on this account. Savings or investment accounts shall be titled in the same manner. Additional checking accounts may be utilized by designated area career centers if required in the administration of student grant or loan programs. The name of such program shall be incorporated in the account title. E. AUTHORIZED CHECK SIGNERS 1) Each account shall have at least two authorized check signers, one of whom must be the principal. These names shall be kept on file for audit. All checks must be signed with two signatures as prescribed by the principal if not prescribed by School District rule. 2) The principal is responsible for all financial transactions and proper check signatures. 3) Under no circumstances shall checks be pre-signed. Internal Funds Procedures Manual 14 04/10/2015

16 F. DUAL SIGNATURES FOR CHECKS If the Principal/Director is unavailable to sign a check due to illness or being out-of-town, any two of the authorized individuals on the official check-signing authorization card may sign the check, except two clerical levels. The authorization card should have the Principal, Assistant Principal(s), office manager and/or bookkeeper. No two clerical functions are to sign a check. The authorization cards are to be updated when there is a change in staffing. The authorization card is to be kept in a safe location and available for audit review at any time. The existing authority for Principal/Director to delegate the initial signature requirement for the check requisition and the Checks Issued Statement remains intact. G. CHANGING BANKS When changing banks or types of checks, please follow these steps: 1) Notify the Accounting Department prior to doing this and new checking account number may need to be setup before the money can be transferred. 2) Verify with the old bank the outstanding balance. 3) Open new account with a check disbursement from the old account (keep enough money in old account to cover outstanding checks that still need to clear). Do not close old account until all outstanding checks have been cashed. 4) Order checks in the next sequence of the current old checking account. 5) A memo listing the unused check numbers must be prepared by the bookkeeper prior to disposal. The unused checks will then be turned over to the school s Records Coordinator for destruction. H. RECONCILIATION A reconciliation of the checking account and any investment account shall be performed monthly. Refer to MONTHLY REPORTS Section 25 Bank Reconciliation. I. INVESTMENTS Cash in excess of immediate needs should be invested with the District s Financial Accounting Department to afford maximum investment potential. Investments outside the District Investment Fund are permissible when insured and non-speculative. Traditionally, the District s Investment Fund has provided a competitive rate and quick accessibility. Investment accounts must be reconciled monthly. Internal Funds Procedures Manual 15 04/10/2015

17 1) Investing Investing money is the process whereby schools can earn additional interest on excess checking account funds. Checking account funds often earn no interest or a lower rate of interest than can be earned with the District Investment Fund. (Contact the Director of Accounting for details). A check is written from the checking account and deposited into the Investment Fund, customarily with the District. This process represents a shift between the two cash accounts. The Internal Funds Checking account is reduced and the Internal Funds Investment account is increased. This transaction does not reduce the individual category balances belonging to clubs, organizations, or students. Investing money is only a shift of funds between the two cash accounts. At all times, the total of the school s Internal Funds Bank accounts will equal the total of the individual category balances. 2) Withdrawals from Investments Invested money is not additional funds. The money invested has already been recorded on the books and is included within the category balances of the individual accounts. Therefore, withdrawing money from the Investment account does not provide new cash to spend. Money is withdrawn from investments for purposes of depositing into the checking account to assure that adequate cash is available to support checks to be written. The withdrawal from investment represents only a shift between cash accounts. The investment withdrawal does not affect individual balances within the categories belonging to clubs, organizations, or students. Expenditures are not processed from the Investment Fund. All expenditures reduce the checking account balance and the respective category balance of the club, organization, or group of students. Internal Funds Procedures Manual 16 04/10/2015

18 5. CHANGE FUNDS AND PETTY CASH FUNDS A. CHANGE FUND: CCPS BOARD POLICY 6621 Change funds may be established at the discretion of the principal or director for purposes such as school store, athletic events, or cafeteria lines. This is not to be used for making purchases as a substitute for petty cash, but is intended to aid the cashier in making change during a school event. The dollar limits of the change funds shall be set at a reasonable level for each event. Adequate safeguards shall be placed over the cash at all times. If funds are to be idle for a prolonged period of time, the funds shall be deposited back to the checking account to afford maximum safeguarding. 1) Establishing Change Fund A change fund may be established at the discretion of the principal for activities where cash operations require the cashier to make change. The dollar limit of the change fund shall be set at a reasonable level for each event as well as how many change funds are needed on campus. The establishment of a Change Fund will require the issuance of a check. The check will be coded to the Change Fund Category. Funds should always remain intact and contain the original amounts they were opened with. If funds are to be idle for a prolonged period of time, they should be deposited back into the checking account. The change fund is subtracted out of the gross cash derived from the event and returned to proper safekeeping (vault) for use in other school events of the year. Only the sales dollars are deposited in the bank. At year-end all change funds should be deposited back into the checking account using the Change Fund category used to establish it. B. PETTY CASH FUND: CCPS BOARD POLICY 6620 Petty cash funds may be authorized by the School District for the purpose of making small expenditures or reimbursements for the operation of school. Therefore, the Board shall adopt annually a resolution establishing one (1) or more petty cash funds. This resolution shall: specify the maximum amount to be placed in each individual petty cash fund; specify the maximum amount of any single expenditure from that petty cash fund; designate the District official(s) by name and by position that will be designated custodian(s) of each individual fund and therefore, authorized to expend money from that fund. The Board shall require the imposition of such controls as will prevent abuse of such funds. Accordingly, the Superintendent shall develop procedures specifying the fund controls for any petty cash fund. Internal Funds Procedures Manual 17 04/10/2015

19 All petty cash funds will be closed out for an audit at the end of the school year and unused funds will be returned to the depository. At no time shall these funds be used as a loan or advancement to any organization or person, including cashing of personal checks or for the purchase of equipment. The following procedures are to govern the use and control of petty cash funds: A. Petty cash may be used to pay for materials, supplies, and expenses that are considered to be usual and legitimate expenses of the District, and involve less than $ B. A petty cash form #FA-7-P voucher is to be completed each time a disbursement is made and is signed by the person who made the purchase. The invoice, bill, or sales slip, is to be attached to the voucher. The invoice should include the vendor name, date of purchase, detail of items purchased, total amount, and that payment was received. C. A "Petty Cash Report" (form 31303) is to be completed, signed by fund custodian and principal, petty cash vouchers and receipts attached, and submitted to the Accounts Payable Department when requests are made for replenishing a fund. D. At no time shall these funds be used as a loan or advancement to any organization or person, including cashing of personal checks or for the purchase of equipment. Adequate safeguards shall be placed over the cash at all times. Petty cash funds are to be closed prior to the end of the school year. Final requests for replenishments of the petty cash fund should be made prior to the end of the school year so that the Accounts Payable Department will have sufficient time to process a check and send it to the school to deposit prior to close out. 1) Establishing Petty Cash Fund The establishment of Petty Cash funds at the beginning of the new fiscal year will require the issuance of a check payable to and cashed by the designated petty cash custodian. The check will be recorded from the Checking account and charged to the Internal Funds Petty Cash or Locational Petty Cash categories. Adequate security must be provided for petty cash and change funds at all times. It is recommended that petty cash and change funds be kept in a locked safe and verified at least quarterly. 2) Petty Cash Disbursements a. The Petty Cash fund may be used when purchasing small items costing less than $200 as set by the School District. Splitting purchases into two receipts, for example, purchase two chairs for Internal Funds Procedures Manual 18 04/10/2015

20 $198 each and asking the cashier to provide two separate receipts violates the Board approved policy for petty cash. b. Expenditures from this fund must be supported by itemized original receipts, sales tickets, invoices, etc. clearly indicating that the item was paid for and there is no unpaid balance. c. Refunds or awards to students may be made from Petty Cash because of them not having a bank account to cash a check. d. Petty cash should not be used as a change fund. 3) Petty Cash Reimbursement a. All Petty Cash transactions must be documented by a properly completed Petty Cash Voucher (Form FA-7-P; refer to printable forms) The Petty Cash Voucher provides for transaction accountability and is a source document supporting accounting entries. b. The Petty Cash Voucher is utilized for both Locational Funds and Internal Funds. The sections listed below need be completed: Date Paid To Amount Paid For Charge to Money Received By c. The bookkeeper completes a Petty Cash Voucher, indicating the locational budget coding (fund, function, object, center, and project) or Internal Funds category from which the expense will be charged. The employee signs the form attesting they received the money. In all cases, the signature of the person receiving the money must appear in the space provided on the Petty Cash Voucher. d. Once the employee is reimbursed, the receipt is attached to the Petty Cash Voucher. e. The Petty Cash Voucher(s) and cash on hand must ALWAYS equal the original petty cash issue amount. f. Expenses must be posted/charged to the proper account classification for which the expense was incurred. Recording the expense and charging the appropriate budget will depend on which petty cash fund is involved locational or internal funds. The expense(s) will be recorded against the locational budget during the replenishment process. The expense(s) will be recorded against the internal funds budget when entering a cash out transaction in the cash box module. Internal Funds Procedures Manual 19 04/10/2015

21 4) Petty Cash Replenishment When the Petty Cash fund becomes depleted, procedures vary depending on what type (locational or internal) petty cash fund was established. Procedure for Replenishment of Locational Petty Cash Fund: Note: If there are charges against a federal/state grant project account, reimbursement requests should be submitted on a monthly basis due to project end-date restrictions. Also charges need to be approved by the Project Manager prior to submitting to the Accounting Department. The Petty Cash Reimbursement Form (FA-7-9 (31303); refer to printable forms) a. List each Petty Cash Voucher on the Petty Cash Reimbursement Request form. b. Summarize each function/object/cost center/project in the box provided on the form. c. Attach Petty Cash Vouchers and original receipts d. Make sure you keep a copy of the Reimbursement Request, Petty Cash Vouchers and receipts e. Have petty cash custodian and principal sign the form and forward to the District s Accounting Department. f. A check will be prepared charging the locational budget, payable to the petty cash custodian and forwarded to the school via pony mail. (Most banks have a policy against cashing checks payable to a third party. If the custodian endorses a petty cash reimbursement check and ask someone else to cash the check at a bank, it may not be processed.) Procedure for Replenishment of Internal Funds Petty Cash Fund: a. An Internal Funds check will be prepared and made payable to the petty cash custodian for the total of all petty cash vouchers. It is coded to the Internal Funds Petty Cash category. b. The check is cashed by the petty cash custodian and the money is returned to the cash box. A cash-in transaction is entered in the cash box module. Internal Funds Procedures Manual 20 04/10/2015

22 6. INCOME / RECEIPTS A. COLLECTION OF MONIES All monies collected for school sponsored activities are required to be deposited into the Internal Funds of the school. The money is to be recorded and deposited according to established procedures. B. REPORT OF MONIES COLLECTED 1) All monies collected must be turned into the Bookkeeper, intact, for proper receipting and depositing. Once collected, the monies should not be used to pay for items needed or reimburse purchases. 2) Insofar as is practicable, all money should be collected in the school office. Collections made outside of the school office or of an evening event must be turned in to the school office no later than the next business day. An extension to this time frame is made to Adult Education of five (5) business days because additional time is needed to safety transport monies to bookkeeper from multiple sites. 3) All monies collected must be submitted to the Bookkeeper using a Report of Monies Collected form FA-4-P (Refer to printable forms) indicating a breakdown of cash and check totals. 4) The Monies Collected form must be completed by the sponsor, student, treasurer or teacher and then transmitted with the cash and/or checks to the bookkeeper. The Monies Collected form is a supporting document for the official receipt. The Monies Collected form is not an official receipt and should not be utilizes as such. Note: There should be a listing of whose money was received (i.e. student, parent, or employee). No particular format is required for that break-down but should include the name and amount received. A class list, school roster or other document with amounts collected would be sufficient to attach to the monies collected form. There will be few instances where a listing is not practical such as sales made to the general public for car washes, concession stands or school store. Events where tickets are sold require the Report of Tickets Sold form FA-5-P (Refer to printable forms). Inventory controls should provide accountability when names are not obtainable from the sale of products or services. 5) The Bookkeeper will verify the amount of money reported on the Monies Collected form when the funds exchange hands. The computer will generate an official receipt which automatically assigns a receipt number. The receipt is given to whom the funds were handed in by. 6) The bookkeeper must print and sign all receipts as they are created. The receipt number must be written in the left hand corner of the Monies Collected form. The original monies collected form is retained. A copy is given to whom the funds were handed in by. 7) If monies have been collected from more than one event, a separate Monies Collected form shall be completed for each event. Internal Funds Procedures Manual 21 04/10/2015

23 8) A Monies Collected form is optional, but suggested for uniformity, when money is received by Mail. Attach check stub or copy of check to the official receipt. 9) All monies collected for school sponsored activities, by any club or school organization must be deposited in the school internal fund bank account. An adequate system of internal controls shall be maintained in order to safeguard the assets of the school internal funds. C. RECEIPT AND DEPOSIT DATES The receipt date and the deposit date are two distinct dates that are utilized when entering data into the computerized accounting system. 1) Receipt Date The receipt date is the date the Bookkeeper actually receives the money, not the date that the money was collected. 2) Deposit Date The deposit date is the date that the money is deposited into the bank. This is the date that ultimately appears on the bank statement and ledger. D. BANK DEPOSITS All money collected must be deposited intact to a depository as frequently as feasible and as dictated by sound business practices. IN ANY EVENT, FUNDS COLLECTED MUST BE DEPOSITED WITHIN FIVE (5) WORKING DAYS AFTER RECEIPT. All checks received for deposit shall be itemized and endorsed with a restrictive endorsement of For Deposit Only and specify the account number. All deposits must equal the total amount collected and recorded in the Internal Funds records of the school. Only one deposit slip is required for each deposit being made, which may include amounts from more than one Report of Monies Collected form. When entering the information into the accounting program, make sure that the deposit date is the date that the bank receives the money. The deposit should match the date that will appear on the actual bank statement. In the accounting program, when entering the information for each receipt, the program indicates a deposit number. This number represents the number of separate deposits that will be deposited into the bank on a given day. Each deposit slip prepared requires a different deposit number when deposited on the same day. Internal Funds Procedures Manual 22 04/10/2015

24 The deposit date in the accounting program shall reflect the date of deposit per the bank statement. When depositing checks, if the checks are not listed on the bank s deposit slip, a SchoolCash print-out named adding machine tape must be run and included with the deposit slip. It is highly recommended that a second adding machine tape be printed and filed with the Report of Monies Collected form(s) that make up the particular deposit. The Principal or designee shall be notified immediately of any errors in deposits or disbursements and shall take appropriate action to make the necessary corrections. E. NON-SUFFICIENT FUNDS (NSF): CHECKS CCPS BOARD POLICY 6151 The following will occur whenever an individual writes a check to the District which is not honored upon presentation to the respective bank or other depository institution for any reason: A. Once a check has been dishonored and returned to the District office or school office, the Director or Principal will attempt to redeposit the check one (1) time. B. If the check is returned a second time, the Director or Principal will send a certified letter, with a return receipt requested, to the individual requesting payment plus an additional returned check fee not to exceed the amount set forth in F.S The individual will have thirty (30) days in which to make payment or to arrange a satisfactory payment schedule. C. For the purposes of Internal Funds, once collection efforts have been exhausted after 180 days, a determination will be made by the Director or Principal, depending on value, whether to write off the check or to pursue further action. D. For the purpose of District funds, once collection efforts have been exhausted after 180 days, a determination will be made by the Accounting Director, depending on value, whether to write off the check or to pursue further action. E. The Principal shall notify the District office when insufficient fund checks have been written off from the school's Internal Fund. Definition of an NSF Check: NSF checks are those checks that have been deposited into the Internal Funds checking account, but have been returned by the bank primarily due to insufficient funds or closed accounts. NSF checks are recorded in the NSF Tracker module in the accounting software even if the NSF check is being re-deposited. They should be monitored each month. 1) Collection of Worthless Checks a. The principal is responsible for seeking reimbursement for any unpaid check returned by the bank. b. A check can be declared uncollectible only after proper approval by the Principal/Director. This action will be taken only after every legal and reasonable effort at collection by the principal has been exhausted. Internal Funds Procedures Manual 23 04/10/2015

25 c. The school principal may require payment for school obligations in cash, money order, or other form of guaranteed payment if it is deemed necessary. d. Under no circumstances is a student to be held responsible for payment, collection, or notification of an NSF check for fund-raising activities. e. A reasonable effort must be made in collecting all NSF checks. It is recommended that the school maintain a file on all correspondence sent to the parties whose checks were returned. 2) Procedures for handling NSF Checks Insufficient (NSF) checks shall be recorded through the NSF Tracker module of the SchoolCash accounting program. The funds are subtracted from the category they were originally deposited to and recorded on an outstanding list. Attention needs to be given to the category it was tagged to when it was originally deposited & itemized. The NSF Tracker will withdraw the funds from the category it was tagged to and in some cases that might not be correct. Outstanding NSF checks should be monitored each month and resolved prior to year-end. Once all collection efforts have been exhausted after six months and the item is deemed uncollectible the NSF check must be approved by the Principal/Director to no longer pursue payment. A memo from the principal/director to the Accounting Department should be sent to inform them that efforts have been exhausted to collect funds. Keep the following backup in school files: the documentation showing the principal/director s approval, a copy of the NSF check, a copy of the bank statement and/or bank notice advising you of the NSF, and copies of all correspondence to the maker of the check. The NSF item will continue to appear on the NSF Tracker outstanding list until the year-end rollover procedures. 3) Bank Charges for NSF Checks Banks may charge a fee for processing an NSF/Returned Item. This fee will be recorded when adding record in the NSF Tracker. 4) Administration Fees - Optional Charging the maker of an NSF check a fee is OPTIONAL. Florida Statutes (832.08(5) allows the following: $25, if the face value does not exceed $50 $30, if the face value is over $50 but less than $300 $40, if the face value exceeds $300 but less than $800 Or 5% of the face value whichever is greater This fee is recorded as part of the NSF Tracker entry and not credited to any category until payment is received. Internal Funds Procedures Manual 24 04/10/2015

26 7. PURCHASING A. PURCHASING: CCPS BOARD POLICY 6320 All procurement of supplies, materials, equipment, and services paid for from School District funds shall be made in accordance with all applicable State statutes, Florida State Board of Education Rules, School Board policies, and administrative procedures. B. REQUIREMENTS The requirements pertaining to purchases and securing bids on purchases made from public tax funds shall be observed when purchases are made from internal funds except that: 1) School District approval of internal account vouchers is not required unless specifically provided for by school district rule. 2) School District requirements for internal funds may be stricter than those required for tax funds. (Rule 6A-1.091, FAC) 3) Purchases from internal accounts shall not exceed the resources of the applicable student activity/project account, except for items acquired for resale or items authorized by school district rule. Purchases to support instructional programs may be made from revenue derived from production work of vocational programs. C. RESPONSIBILITY 1) The school principal is fully responsible for all purchases and purchase commitments requiring present or future disbursements of internal fund monies. Purchases of $3000 or more require prior written approval using standard Internal Funds Purchase Order. At the discretion of the school principal a lower limit may be established. Vendors shall be notified of this policy. No purchase shall be made unless sufficient resources are available, except items for resale. 2) The school district may delegate by rule to such individuals as it may deem appropriate, the making of purchases from internal funds and the securing of quotations and awarding of contracts (Rule 6A-1.091, FAC). 3) No person, unless authorized to do so under regulations of the School District, may make any purchase involving the use of school funds. (Rule 6A-1.012, FAC) Internal Funds Procedures Manual 25 04/10/2015

27 D. VENDOR TOLERANCE MONITORING The Accounting Department will monitor the vendor activity and notify the Purchasing Department if a district wide contract is necessary due to district wide use and total dollars spent with the vendor. Insofar as is possible, purchases of the same or a similar nature to be used in more than one school should be combined and purchased only after approval of the school district. (Rule 6A-1.091, FAC). E. PURCHASE ORDERS An Internal Funds Purchase Order form (found on District s Printable Forms Search) must have Principal s approval for any Internal Funds purchases of $3000 or more. At the discretion of the Principal a lower limit may be established in order to maintain good control over purchasing obligations. F. CONTRACTS/ CONSULTANT AGREEMENTS If a school is contracting with anyone, contracts are to be sent to the Legal Department in advance along with a Contract Submission Form. In some cases a Certificate of Insurance is required from the provider. Typically DJ s, Tour Bus Drivers, and other providers having one on one contact with students must comply with the Jessica Lunsford Act and be fingerprinted and have a background check. The term "consultant" is appropriately used interchangeably for professionals who receive taxable compensation for services performed. The consultant must submit a W-9 (tax form with either Social Security number or employer I.D. number). Payments cannot be made without this data. The paid consultant will receive a form 1099 at year-end and should retain business expense data for tax purposes. Procedures for preparation of the Educational Consultant Services Contract are specified in detail in the Selected Subjects of Interest published by the Financial Services Department on the District website. Specific questions or concerns regarding Contracts or Consultant Services Agreements can be obtained through the Purchasing & Legal Departments. G. USE OF CREDIT CARDS THROUGH INTERNAL FUNDS Proprietary credit cards are authorized for internal fund use. Proprietary cards are issued by large retailers for the purpose of transacting business solely with that entity. These retailers may require membership to qualify for discounts and benefits offered. The use of proprietary credit cards should be used on a limited basis. The intent of this procedure is for proprietary credit cards to be used when Purchase Orders are not accepted by the retailer. Internal Funds Procedures Manual 26 04/10/2015

28 Commercial credit cards are authorized for predetermined schools for internal funds use. Commercial cards are issued by Fifth Third Bank for the purpose of transacting business with retailers accepting MasterCard. The District s Executive Director of Financial Services will complete the Commercial Card Service Agreement and the Authorization Certificate naming the school s Principal in authority to name cardholders and their credit card limits. Cardholders: Cards should be issued in the name(s) of key personnel, along with the school name, (i.e., John Smith, Avalon Elementary School) as authorized by the principal or director; but not a generic card issued solely in the name of the school. The Employee Acknowledgement Disclosure Form (6610 F1), should be read and signed by anyone issued a credit card. Cardholders should keep the card and the account number in an accessible, but secure location. Cardholders must not permit or direct others to use their card. Cardholders must immediately report a lost or stolen card to the school principal or bookkeeper who will then contact the retailer. Cards must be surrendered if employment location changes or terminates. Purchasing Procedures: All purchases must be pre-authorized by the principal or director, which should facilitate compliance with requirements for effective internal control of cash disbursements. Cardholders shall print an order page when making purchases online and request confirmation numbers when making purchases by phone. To avoid sales tax, cardholders must inform the vendor of the Board s tax exempt status. Cardholders must obtain itemized receipts for all purchases. Proof of purchase receipts must be turned in to the school office bookkeeper. When merchandise is purchased for resale, an attempt should be made to pay sales tax at the time of purchase in order to avoid the necessity to file a sales tax return. Prohibited Purchases: The following types of items may NOT be purchased with the credit card: A. items for personal use B. cigarettes/alcohol C. cash advances D. furniture, fixtures, equipment, software costing $1,000 or more E. cellular phones or accessories Internal Funds Procedures Manual 27 04/10/2015

29 Disputes: It is the responsibility of the cardholder to contact the vendor to dispute charges or to return items, if necessary. When returning items or resolving disputes, cardholders must never accept cash from the vendor to settle a return or disputed amount. Appropriate credits must be issued to the card on which the original transaction was made. Any discrepancies or disputes must be resolved timely. Recordkeeping: A current list of cardholders shall be maintained at all times to include appropriate retailer information. A completed Employee Acknowledgement Disclosure Form for all cardholders shall be retained at school site and be available for audit inspection. Itemized receipts for all purchases must be received and attached to monthly billing statement. It is recommended that each purchase and/or receipt be entered as a separate transaction with appropriate descriptions and coding. Accounts must be reconciled and paid in full as soon as the statement is received to avoid interest charges and/or late fees. Internal Funds Procedures Manual 28 04/10/2015

30 8. EXPENSES / DISBURSEMENTS A. EXPENDITURES FROM INTERNAL FUNDS: Every expenditure from school Internal Accounts is to be made by check only, signed by the principal/administrator and another School District employee identified by the principal. The principal/administrator shall identify, whenever practical, a third building administrator to sign in the event of the principal/administrator s absence. The principal/administrator should sign all checks, other than checks made payable to themselves for reimbursement. Another authorized signer should sign checks payable to the principal or bookkeeper. All checks must be accompanied by a check issued statement or check requisition prepared and signed by the individual responsible for the financial affairs of a particular organization or activity. The check blanks are to be pre-numbered, and each blank, voided, or skipped check shall be accounted for. Internal funds shall not be used to cash checks to accommodate individuals, make any kind of loans, pay any form of compensation directly to employees, or extend credit. Employees of the district who are compensated for additional services, such as game personnel to work at athletic events, shall be paid through the district payroll department or when appropriate as prescribed by school district rule. Internal Funds shall be expended for the purpose for which they were collected and in accordance with procedures established by the State Board of Education and standard public accounting procedures as provided by the School District of Collier County, FL. 1) All disbursements by any club or school organization must be made by an internal fund check, or from an approved petty cash fund. Disbursements shall be approved by the appropriate organization officer, when the organization has officers, the sponsor and the principal. 2) Purchases from internal accounts shall not exceed the resources of the applicable student activity/project account, except for items acquired for resale or items authorized by school district rule. Purchases to support instructional programs may be made from revenue derived from production work of vocational programs. 3) Purchases from internal funds must be authorized in writing by the principal or designee. Neither the school nor the school district shall be liable for any purchase made in the name of the school without express written approval. 4) Pre-numbered and computer generated checks shall be used as the means for disbursing funds, and as the basis for accounting entries, with the exception of disbursements from properly established petty cash funds. 5) Promissory notes, installment contracts or lease purchase agreements shall not be executed in the name of a school or any school organization except as authorized by the Board. 6) Internal funds shall be accounted for on the same fiscal year basis as all other school district funds. No school organization shall make expenditures that exceed the cash resources available to that organization. 7) An adequate system of internal controls shall be maintained in order to safeguard the assets of the school internal funds. Internal Funds Procedures Manual 29 04/10/2015

31 B. DISBURSEMENT DOCUMENTATION If available, most or all of these should be attached to check stub: An original receipt or invoice including: Company Name, Date of Purchase, List of items purchased Packing slip or evidence that merchandise was received and at the school Sponsor s approval Purchase Order For reimbursements: proof of payment For replenishments: Petty Cash Voucher(s) Check Issued Statement or Check Requisition by itself is not adequate supporting documentation for disbursement. An requesting payment by itself is not adequate supporting documentation for disbursement. Check disbursements should be filed numerically with the appropriate documentation attached. The Check Issue Statement or Check Requisition should be filed separately in numerical order. C. RESTRICTED EXPENDITURES The following expenditures from Internal Funds are deemed inappropriate and shall not be made except from trust funds collected for a specifically identified purpose: 1) Equipment, supplies, forms, and postage for curricular or classroom use for which school district funds are available. The exception is for revenues derived from career education production shops, which may be used for these purposes. 2) Curricular-related travel; professional, technical, or consultant services; or other items for which school district funds are available. The exception is for revenues derived from career education production shops, which may be used for these purposes. 3) Articles for the personal use of any student, employee, or other person, except those items that are identifiable as being in recognition of service or promotion of school activities and those items identified under Rule 6A , F.A.C., Promotion and Public Relations Funding. 4) Personal memberships or subscriptions. 5) Salaries or other compensation for duties or assignments that are the responsibility of the District. 6) Loans, credit, or accommodation purchases. 7) Repairs and maintenance of school district equipment for which school district funds are available. The exception is for revenues derived from career education production shops, which may be used for these purposes. If there is a question concerning an expenditure, contact the Accounting Department for clarification. Internal Funds Procedures Manual 30 04/10/2015

32 D. PAYMENTS TO VENDORS FROM INTERNAL FUNDS The method of payment for products or services performed by individuals or businesses will depend on the relationship that exists between the individuals or businesses and the school or District. The relationships are best described by the following three categories: 1) Employee An employee/employer relationship exists when an individual is engaged to perform a service that is under the control or supervision of the school or District. The school or District sets the time, the hours, the rate of pay, and is responsible for the function. These payments must be processed through the District s Payroll Department. Any questions regarding rates should be directed to the District s Compensation Department. If funding is coming from Internal Funds, a check is submitted to the District to include the salary and fringe benefits. A Request for Deposit of Attached Checks form should accompany the check indicating the locational budget account coding matching the employee s pay. 2) Non-Incorporated Independent Contractor An individual or non-incorporated business that is hired to perform a service must be routinely engaged in providing similar services to other customers. The individuals or businesses have a level of expertise beyond that of an employee and do not provide services that are controlled or supervised by the school or District. 3) Incorporated Independent Contractor A business that is legally incorporated and is hired to perform a service. This business is routinely engaged in providing similar services to other customers. These services are not supervised or controlled by the school or District and require duties or responsibilities that are not part of a normal employee/employer relationship. All payments must be processed in the corporate name. E. NEW VENDOR SETUP If the school is contracting with anyone, a Contract Submission Form should be sent to the District s Legal Department at least two weeks prior to the services being rendered. Typically DJ s, Tour Bus Drivers or other providers having contact with our students must comply with the Jessica Lunsford Act which requires fingerprinting and background check. In some instances a Certificate of Insurance is required. Vendors that are being paid from locational budget are required to complete a W-9 and New Vendor Information Form which can be obtained on the Purchasing Department web site. The W-9 (tax form with either Social Security number or employer I.D. number) and the New Vendor Information Form should be sent to the Purchasing Department before the invoice is paid. Internal Funds Procedures Manual 31 04/10/2015

33 Vendors that are being paid from internal funds should be set-up in the District Supplier List before checks are issued. Internal funds vendor forms can be obtained on the Finance Department web site. A W-9 is required when paying an individual for services and submitted to the District office when the expense occurs. F. SUPPLIER/VENDOR LIST The computerized accounting system supplier list is maintained at the District level and is designed to provide names and addresses of vendors (businesses/companies) used. Current or updated data is provided primarily by schools/departments having contact information with their respective suppliers. The use of abbreviations or acronyms is not recommended. Utilization of supplier list is dependent on proper use and will provide: 1) Ease of data entry when updating and posting disbursements. 2) Streamlining of the search process when investigating invoice status. 3) A permanent record (e.g., total payments for the current and prior fiscal and calendar year, check number, date, and amount of last payment) exclusively for each vendor. 4) Consolidation of all schools/departments vendor data for reporting purposes G. SCHOOLCASH ONE-TIME VENDOR FEATURE: Staff, parents & student names are not populated on the District s Supplier/Vendor list. The SchoolCash one-time vendor feature is used when issuing reimbursement checks to staff, scholarships to students or refunds to parents. All other payees should be on the Supplier/Vendor list prior to issuing a check. H. CHECK REQUISITIONS OR CHECK ISSUED STATEMENT Before any checks are issued, it is necessary that they be authorized with a properly prepared Check Requisition or Check Issued Statement. The Check Requisition or Check Issued Statement provides for transaction accountability, payment authorization, and is a source document that supports accounting entries. Check Requisition or Check Issued Statement forms must be filed in numerical sequence. The following items are necessary before issuing a Check Requisition or Check Issued Statement: Internal Funds Procedures Manual 32 04/10/2015

34 1) The original invoice or store receipt, whichever is applicable. Statements alone shall never be used as a basis for payment. However, if no invoice/receipt is available, a full explanation and a reason for lack of an invoice/receipt shall be attached to the form. 2) The District s Financial Accounting Department requires that original invoices/store receipts be forwarded to the Department when claiming a reimbursement from locational funds. Only, in these instances photocopies of the invoices/receipts can be in place of the originals. 3) A properly completed School Internal Funds Purchase Order form or equivalent District document, if applicable. All Internal Funds disbursements must comply with the School District Purchasing Policies. 4) Packing slips and any other pertinent backup information to support the payment. The Check Requisition or Check Issued Statement forms shall show: Check Number. Name of the School/Department. Check Date. Amount of check. Invoice date & number. Sub Account Category Name. Check Payee. Complete Description of Expenditure. Teacher /Sponsor/Bookkeeper Signature and Date. Principal/Director Signature and Date. I. VOIDED CHECKS Checks will occasionally need to be voided for a multitude of reasons. A check may have been lost by the payee, erroneously completed, or the computer printer may have mangled a check when printing. Voiding a check that was added to the ledger is processed through the reconciliation module. The accounting program adds back the amount of the check to the cash account and category, and removes the check information from the outstanding check list. Voided checks must be marked VOID and the SIGNATURE BLOCK REMOVED. File in numerical sequence. When the check is not available, notations on the check stub should indicate the check was VOIDED. If the check is reissued, notations should include the replacement check number. Internal Funds Procedures Manual 33 04/10/2015

35 J. SKIPPED CHECKS Skipped checks are checks that are NOT posted to ledger. They could have been damaged in the printer, printed out of sequence, or just not used. The check number of these checks will not appear on the ledger or on any reports. The principal should be made aware of any skipped checks by obtaining his/her signature. Report #11A in the accounting program will provide a listing of all checks issued with an (*) asterisk indicating where a check number is missing. Any type of worksheet or log will be acceptable. A record of skipped checks should be filed with the check issued statements and/or check requisitions. The original check should be filed numerically with the check stubs & invoices of posted checks. The skipped check should be marked VOID with the SIGNATURE BLOCK REMOVED. If the original check is missing/lost, an explanation needs to be written on a piece of paper and filed in the numerical sequence. K. OUTSTANDING CHECKS Outstanding checks are those checks that have been drawn on the Internal Funds Checking Account that have not cleared the bank. Checks are considered stale dated after six (6) months. Checks should have a stale dated message printed on them. At time of reconciliation, the accounting program will alert you to any stale dated checks left on your outstanding list. Checks should be voided unless circumstances exist that indicates they will clear the bank account. If the amount is material, a stop payment could be placed. A valid attempt should be made to reissue the check. Internal Funds Procedures Manual 34 04/10/2015

36 L. UNCLAIMED PROPERTY Florida Statute requires that all unclaimed property, including all checks that have been outstanding for one calendar year, be reported to Florida s Unclaimed Property Department on an annual basis. Due diligence must be exercised in making efforts to locate the payees of these outstanding checks. The school shall send written notice by first-class mail to the owner at the owner s last known address allowing enough time for a response. Clearly state the purpose of the letter and indicate that funds will be remitted to the State if response is not received. Provide contact information for customer to reply. Sample Letter: You are hereby notified that the check listed above issued by <name of school> has not been cashed. If you are the rightful owner, please contact our office at <phone number> no later than <date> so that we may reissue your check. Funds not claimed will be turned over to the State s Unclaimed Property Division. Your immediate response is requested, <Bookkeeper/Principal> Unclaimed funds that meet the one year dormancy period should be forwarded to the District Office. Each school should submit the following to the District: The name, address, amount & date of the original check & copy of the outstanding check stub Documentation of due diligence procedures performed to honor the listed checks. Holders of unclaimed property can be subject to fines and interest penalties if the unclaimed property report and remittance are not submitted by the specified due date. Internal Funds Procedures Manual 35 04/10/2015

37 9. EQUIPMENT TANGIBLE PROPERTY ACQUISITION OR DISPOSITION OF EQUIPMENT THAT COSTS $1,000 or more (TANGIBLE PROPERTY) The sale, transfer, or disposal of tangible property is subject to law and regulations of the State Board. The District may sell, transfer, or dispose of any real or tangible property that is declared by the School District to be unnecessary or unsuitable because of location, condition, or other cause. Tangible property is equipment with a value of $1,000 or more. The Property Record Transfer Request (Form 31116) or Disposition/Surplus (Form 31118) of Property (Refer to printable forms), must be completed when tangible property is acquired from another location, transferred between locations, or retired with a value of $ 1,000 or more. A. ACQUISITION OF EQUIPMENT EQUAL TO $1,000 OR MORE 1) Should be purchased through locational funds. A copy of the District s Purchase Order form is automatically forwarded to the District s Inventory Specialist in Accounting Department to issue an equipment tag to ensure the item is tagged and included in the fixed asset inventory count at year-end (see Inventory Section 10 in manual). 2) When purchasing through the Internal Funds, the District s Inventory Specialist must rely on the school to submit a copy of the check requisition or check issued statement and invoice showing the date and amount of purchase. 3) If is acquired by donation, equipment with a fair market value equal to or greater than $1000, must notify School District s Fixed Assets Department. 4) Equipment equal to or greater than $1,000, whether purchased or acquired by donation, as defined in Chapter of the Florida Statutes, becomes the property of the District and is subject to tagging and record keeping procedures for property control including an annual inventory and certain disposition rules. B. EQUIPMENT IS OBSOLETE OR OF NO VALUE When a Principal or Director determines an item which has been tagged as a fixed asset is either obsolete or of no value, the school shall afford the opportunity for other locations to claim any unwanted or surplus property. This process is accomplished by ing other locations. If claimed, the property is transferred to the new location by completing the Property Record Transfer Request form and following the instructions outlined. If no location claims the surplus property, the Surplus Property form must be completed and forwarded to the District s Inventory Specialist in the Accounting Department for proper disposition. The property disposition must be approved by the School District prior to disposition of the property. For specific questions pertaining to property acquisition and control, contact the District s Inventory Specialist in the Accounting Department. Internal Funds Procedures Manual 36 04/10/2015

38 10. INVENTORY A. INVENTORY OF TANGIBLE PROPERTY: CCPS BOARD POLICY 7450 The School District recognizes that efficient management and full replacement upon loss requires accurate inventory and properly maintained property records. A complete inventory of all District owned tangible personal property shall be conducted annually. For purposes of this policy "tangible personal property" shall mean any tangible personal property, of a nonconsumable nature, with a life expectancy of one (1) year or more which has a capitalized value equal to or greater than the value defined in statute This is to ensure compliance with F. S. Chapter 274 which currently requires that: A governmental unit shall be primarily responsible for the supervision and control of its property.. B. PROPERTY ACQUISITION AND CONTROL 1) Fixed asset equipment, as defined in Chapter , F.S., purchased or acquired by donation becomes the property of the school district and is subject to the board's procedures for property control. 2) Notification to Accounting Department Inventory Specialist is required when equipment that meet the criteria for fixed assets are purchased or received as a donation ($1,000 or more in value). A full description of any equipment or property acquired by a school must be given, including make, model, serial number, date acquired and total cost, or fair market value for donated property. Internal Funds Procedures Manual 37 04/10/2015

39 11. DONATIONS A. PUBLIC GIFTS TO THE SCHOOLS: CCPS BOARD POLICY 7230 The School District is duly appreciative of public interest in and good will toward the schools manifested through gifts, grants, and bequests. The District reserves the right, however, to specify the manner in which gifts are made; to define the type of gift, grant, or bequest which it considers appropriate; and to reject those which it deems inappropriate or unsuitable. If accepted, the District will attempt to carry out the wishes of the donor. Gifts, grants, and bequests shall become the property of the District and will be subject to use by the District as determined by the policies and administrative procedures applying to all properties, equipment, materials, and funds owned by the District. Any equipment proposed to be purchased by a parent organization for use in the school or at a District-related event shall be submitted to the Superintendent, prior to purchase, so it can determine if the District would incur any liability by its use. The Board is under no obligation to replace a gift or memorial if it is lost, stolen, destroyed, or becomes unserviceable. The Board reserves the right to not accept such liability and thus deny the use of the equipment by students or District employees. School Memorials and Gifts A. No individual, group, or organization shall be permitted to erect an honor roll, memorial, or structure of any kind upon school grounds except by approval of the Superintendent. Memorials shall be limited to a plaque and/or appropriately displayed portrait in the media center, office, etc. Also, a simple landscape project would be acceptable (i.e., planting of a tree, small flower garden), provided there is little or no maintenance and is consistent with the Board's master plan. B. Permanent structures shall have utilitarian value in the operation of the school or be erected in memory of a person who has been associated with the school either as a student or employee, or an organization which has been made some outstanding contribution to the school or District. C. Articles of equipment donated to the schools by individuals, groups, or organizations may be accepted if they contribute to the operation of the school program and do not commit the District to potentially significant maintenance cost Internal Funds Procedures Manual 38 04/10/2015

40 B. DONATION PROCEDURE Periodically, local citizens wish to donate items to the school system or to a specific school. In general, you are authorized to accept small items and provide a memo receipt similar to the one below. If the item has an estimated value of less than $1,000.00, no property record is necessary. This procedure promotes good will within our community. Caution: All donated computer equipment must be inspected and installed by the District s Technology Department. SAMPLE LETTER TO DONOR: (For donated item) On behalf of the students and staff of Collier County Public Schools, please accept this memorandum as your receipt for your tax deductible donation of <identify donation> delivered to <Administrator/Department>. Although we do not provide a value of donations received, please feel free to provide my name to anyone wishing to confirm your donation. Our tax reporting identification number is Again, your generosity is appreciated. Sincerely yours, <Administrator> SAMPLE LETTER TO DONOR: (For cash/check donation) On behalf of the students and staff of Collier County Public Schools, please accept this memorandum as your receipt for your tax deductible donation of <Amount donated> delivered to <Administrator/Department>. Please feel free to provide my name to anyone wishing to confirm your donation. Our tax reporting identification number is Again, your generosity is appreciated. Sincerely yours, <Administrator> Internal Funds Procedures Manual 39 04/10/2015

41 12. STUDENT FEES A. STUDENT FEES: CCPS BOARD POLICY 6152 The collection of monies from a student or parents in the form of fees or tuition as a condition of enrollment in an elementary and secondary school or participation by a student in such school in any course or program that represents a part of the student s basic required instruction is prohibited except for the tuition fee charges for children of non-residents. The collection of dues from students for use by clubs and student organizations may be permitted. Exceptions to the above may be authorized by the Superintendent when specific fees are justified as in the best interest of the school program. 1) General Policies concerning Fee Assessments: a. An admission fee may be charged for interscholastic athletic contests, dramatic events, concerts, special music programs, gymnastic exhibitions and similar optional activities. b. A charge may be assessed for food, graduation expenses, yearbooks, student pictures, and the sale of scholastic accident insurance; and, other extra-curricular activities wherein the student does not receive a grade or is evaluated and academic credit is not granted. c. A fee shall be charged for damages or loss of school property. d. A student may be required to pay material costs of projects as in wood or craft classes wherein the student elects to retain the item for personal use. e. A student may be assessed a reasonable fee for school locks, uniforms, musical instruments or other items owned by the school district to defray maintenance, repair, or replacement costs of such items. f. As a convenience to the parents of a student, the principal may prepare a list of personal, general supplies expected of a student for use in the classroom. Such items shall be supplied by the student and may include pencils, pens, paper, notebook, and other items consumed or used by students in the classroom or for homework. However, a specific fee may not be assessed to defray the cost of the material if the student provides the items so expected. g. A reasonable fee may be assessed for overdue library materials. Internal Funds Procedures Manual 40 04/10/2015

42 B. ADULT STUDENT FEES FOR POSTSECONDARY PROGRAMS 1) Programs Supported by the Workforce Development Education Fund As directed by , F.S., district postsecondary centers are to charge fees per contact hour for students enrolled in adult basic, adult high school, applied technical diploma, vocational certificate, continuing workforce education, or other programs which are reported for funding through the Workforce Development Education Fund. The state-established tuition rates are based on the implementation schedule set annually by the State Board of Education or the Legislature. The standard tuition rate that The School District of Collier County charges may vary up to 5% above or below the established fee ( (3)(f), F.S.). Changes in tuition rates are approved by the School District of Collier County. New rates become effective on July 1 for the upcoming Fall Term. (Note: If summer course begins after July 1 st, the new tuition rate would apply.) Districts are authorized to establish fee schedules for the following user fees and fines, pursuant to (9), F.S.: laboratory fees, parking fees and fines, library fees and fines, identification card fees, duplicating, copying, transcript fees, application fees, graduation fees, etc. Such user fees shall not exceed the cost of the services provided and shall only be charged to persons receiving the service. The district may assess a service charge for the payment of tuition and fees in installments, if approved by the School District. As per statute, additional discretionary fees for Post-Secondary programs based on the current tuition rate may be collected as follows: a. Up to 10% of student fees collected for Financial Aid ( (5), F.S.), and shall be deposited in separate trust fund to support students enrolled in workforce education programs (center s GL account until transferred to be paid as financial aid then deposited into Rev Account: 3468), b. Up to 5% of tuition (and out of state fees) for Capital Improvement ( (6), F.S.), and shall be used for capital improvements, technology enhancements, or equipping buildings. A maximum of $0.15 per credit hour may be allocated from the capital improvement fee for child care centers conducted by the district (use program project coding, but may be used for any and all technical programs Rev Account: 3464, c. 5% for Technology ( (7), F.S.), and shall be used to enhance instructional technology resources for students and faculty in any and all technical programs Rev Account: 346A. Adult students enrolled in Adult General Education programs for language and literacy are required to pay block tuition per session. In-state tuition is $30 per session. Deposits are made to Rev Account: Use appropriate project coding with revenue code to reflect the enrollment program (ELL, GEDPREP, ELAS, PREAAA, AAA, CIT). The block tuition rate covers all AGE programs that a student might be enrolled in during one semester (there is no separate charge per program or clock hour). Fee-nonexempt students enrolled in the vocational-preparatory programs Applied Academics for Adult Education and Pre Applied Academics for Adult Education (AAAE and Pre-AAAE)shall be charged tuition and fees equal to those fees charged for Adult General Education Programs ( (3)(a-g), F.S.. Internal Funds Procedures Manual 41 04/10/2015

43 2) Adult Student Fee Exemptions in Adult Literacy Programs ( (1), F.S. Adult Student Fee Exemptions in postsecondary career certificate programs apply to the following cases: ( (1 A-C, E, F), F.S.) a. The student is enrolled in a dual enrollment or early admission program. b. The student is enrolled in an approved apprenticeship programs. c. A student who is or was at the time he or she reached 18 years of age in the custody of the Department of Children and Family Services or who, after spending at least 6 months in the custody of the department after reaching 16 years of age was placed in a guardianship by the court. The exemption remains valid until the student reaches 28 years of age. d. The student is adopted from the Florida Department of Children and Families after May 5, The exemption remains valid until the student reaches 28 years of age. e. The student is enrolled in an employment and training program under the wages transition program and applied for, but did not receive, student financial aid. The regional workforce board shall pay the school district for cost incurred for welfare transition programs participants. f. The student who lacks a fixed, regular, and adequate nighttime residence or whose primary residence is a public or private shelter designated to provide temporary residence for individuals intended to be institutionalized, or a public or private place not designed for, or ordinarily used as, a regular sleeping accommodation for human beings. 1) Adult Student Fee Waivers The criteria to be considered for a waiver of adult student fees is as follows: The district may waive adult student fees not to exceed the amount established annually in the General Appropriations Act, pursuant to , F.S., which is currently set for 8% of all postsecondary tuitions. 2) Adult Student Fee Deferments a. The district may defer tuition and fees for students receiving financial aid from a federal or state assistance program when the aid is delayed in being transmitted to the student through circumstances beyond the control of the student. The failure to make timely application for the aid is an insufficient reason to receive a deferral of fees, in accordance with (1). b. Any veteran or other eligible student who receives benefits under Chapters of Title 38, U.S.C. or Chapter 106 of Title 10, U.S.C. is entitled to one deferment each academic year and an additional deferment each time there is a delay in the receipt of benefits, as documented in c. The district is responsible for collecting all deferred fees. If a district has not collected a deferred fee, the district may not earn state funding for that student until the fee has been paid. Internal Funds Procedures Manual 42 04/10/2015

44 3) Non-Resident Fees Out-of-state fee shall be the additional fees collected for tuition, capital, financial aid, and technology fees for instruction provided by a postsecondary institution, charged to a student who does not qualify for the in-state tuition rate pursuant to Senate bill 1500 ( ). (See annual tuition memo for rates.) Advisors in each post-secondary center have the responsibility for determining resident status for tuition purposes that meet the requirements of the above referenced state statute. To qualify as a resident for tuition purposes (per 2013 legislation): 1. A person or, if that person is a dependent child, his/her parent or parents must have established legal residence in this state and maintained legal residence in this state for at least 12 consecutive months immediately prior to his/her initial enrollment (the first day of class) at an institution. Dependent child means any person, whether or not living with his/her parent, who is eligible to be claimed by his/her parent as a dependent under the federal income tax code. 2. Every applicant for admission to an institution shall be required to make a statement as to his or her length of residence in the state and, further, shall establish that his or her presence or, if the applicant is a dependent child, the presence of his or her parent or parents in the state currently is, and during the requisite 12- month qualifying period was, for the purpose of maintaining a bona fide domicile, rather than for maintaining temporary residence for education enrollment purposes. (b) With respect to a dependent child living with an adult relative other than the child s parent, such child may qualify as a resident for tuition purposes if the adult relative is a legal resident who has maintained legal residence in this state for at least 12 consecutive months immediately prior to the child s initial enrollment in an institution of higher education, provided the child has resided continuously with such relative for the 5 years immediately prior to the child s initial enrollment in a post-secondary program, during which time the adult relative has exercised day-to-day care, supervision, and control of the child. (c) The legal residence of a dependent child whose parents are divorced, separated, or otherwise living apart will be deemed to be this state if either parent is a legal resident of this state, regardless of which parent is entitled to claim, and does in fact claim, the minor as a dependent pursuant to federal individual income tax provisions. (3)(a) An individual shall not be classified as a resident for tuition purposes and, thus, shall not be eligible to receive the in-state tuition rate until he or she has provided such evidence related to legal residence and its duration or, if that individual is a dependent child, evidence of his or her parent s legal residence and its duration, as may be required by law and by officials of the institution of higher education from which he or she seeks the in-state tuition rate. (b) Evidence of legal residence and its duration shall include clear, convincing documentation that residency was for a minimum of 12 consecutive months prior to student s initial enrollment. (c) Each institution shall affirmatively determine that an applicant who has been granted admission to that institution as a Florida resident meets the residency requirements of this section at the time of initial enrollment. Internal Funds Procedures Manual 43 04/10/2015

45 Residency determination must be documented by the submission of written or electronic verification that includes two or more of the following documents No single piece of evidence shall be conclusive. 1. The documents must include at least one of the following: a. A Florida voter s registration card. b. A Florida driver s license. c. A State of Florida identification card. d. A Florida vehicle registration. e. Proof of a permanent home in Florida which is occupied as a primary residence by the individual or by the individual s parent if the individual is a dependent child. f. Proof of a homestead exemption in Florida. g. Transcripts from a Florida high school for multiple years, if the Florida high school diploma or GED was earned within the last 12 months. h. Proof of permanent full-time employment in Florida for at least 30 hours per week for a 12-month period. 2. The documents may include one or more of the following: a. A declaration of domicile in Florida. b. A Florida professional or occupational license. c. Florida incorporation. d. A document evidencing family ties in Florida. e. Proof of membership in a Florida -based charitable or professional organization. f. Any other documentation that supports the student s request for resident status, including, but not limited to, utility bills and proof of 12 consecutive months of payments; a lease agreement and proof of 12 consecutive months of payments; or an official state, federal, or court document evidencing legal ties to Florida. Programs not supported by the Workforce Development Education Fund Pursuant to (3)(b), F.S., fees for Continuing Workforce Education shall be locally determined by the School District. Expenditures for the program must be fully supported by fees. Enrollments in the continuing workforce education courses may not be counted for purposes of funding full-time equivalent enrollment. Districts are required to report fiscal and enrollment information on students in Continuing Workforce Education (CWE) programs. Technical centers are cautioned to proceed with conservative calculation of fees that are required to cover ALL institutional costs associated with the CWE program (to include both direct and indirect school and district costs that are calculated at the end of the year). Pursuant to (8), F.S., the district is authorized to establish specific fees for workforce development instruction not reported for state funding purposes or for workforce development instruction not reported as state funded full-time equivalent students. Districts are not required to charge any other fee specified in this section for this type of instruction. These programs would be under the categories of Customized Programs, Community Education (COMED, COMWIT, COMITC), and/or Lifelong Learning programs. Internal Funds Procedures Manual 44 04/10/2015

46 13. FUND-RAISING ACTIVITIES A. STUDENT FUND RAISING, PUBLIC SOLICITATION & SALES BY SPONSORED GROUPS: CCPS BOARD POLICY 5830 The School District acknowledges that the solicitation of funds from students by students must be limited since compulsory attendance laws make the student a captive donor and since such solicitation may disrupt the program of the schools. For purposes of this policy "student fund-raising" shall include student solicitation and collection of money for any purpose including collection of money in exchange for tickets, papers, or any other goods or services. Student fund-raising by approved school organizations, those whose funds are managed by the Fiscal Officer, may be permitted in school by the principal. Student fund-raising by approved school organizations off school grounds may be permitted under the administrative procedures of the Superintendent. Fund raising by students on behalf of school-related organizations whose funds are not managed by the Fiscal Officer may be permitted on school grounds in accordance with the Superintendent's administrative procedures. These administrative procedures should: 1) specify the times and places in which funds may be collected; 2) describe permitted methods of solicitation which do not place undue pressure on students; 3) limit the kind and amount of advertising for solicitation. Advisors for approved school organizations shall not accept any form of compensation from vendors that might influence their selection on a vendor that will provide a fund-raising activity or a product that will be sold as a fund-raiser. Furthermore, advisors for approved school organizations shall not accept any compensation from a vendor after a decision has been made regarding a fundraising activity or a product that will be sold as a fundraiser. In addition, advisors for approved school organizations who make the selection of a vendor that will provide a fund-raising activity or a product that will be sold as a fund-raiser shall not enter into a contractual arrangement whereby an advisor receives compensation in any form from the vendor that provides a fundraising activity or a product that will be sold as a fund-raiser. Such compensation includes, but is not limited to, cash, checks, stocks, or any other form of securities, and gifts such as televisions, microwave ovens, computers, discount certificates, travel vouchers, tickets, passes, and other such things of value. In the event that an advisor of an approved school organization receives such compensation, albeit unsolicited, from a vendor, the individual shall notify the Fiscal Officer, in writing, that s/he received such compensation and shall thereafter properly transmit said compensation to the Fiscal Officer at his/her earliest opportunity. The Superintendent shall distribute this policy and the procedures which implement it, to each student organization granted permission to solicit funds. Internal Funds Procedures Manual 45 04/10/2015

47 The following procedures are to be followed for any activity that involves fund-raising by students and from students. In any fund-raising activity involving students, the following conditions must be met: A. Minimal instructional time is to be used to plan, conduct, assess, or manage a fund-raising activity unless such an activity is part of an approved course of study. B. Fund-raising activities conducted in a school or on District premises are not to interfere with the conduct of any co-curricular or extra-curricular activity. Students involved in the fund-raiser are not to interfere with students participating in other activities in order to solicit funds. C. Student participation in fund-raising activities conducted by school-related groups of which they are not members must be voluntary and must be approved by the student's teacher or counselor to ensure that participation will not affect adversely his/her school work and other school responsibilities. D. No student of any age may participate in fund-raising activities off-district premises without proper supervision by approved staff or other adults. E. In accordance with School Board policy, each fund-raising activity must be approved by the principal or designee by using Form 5830 F1. In order to be approved, the group leader or advisor is to submit a proposal in advance of the event so that all fund-raising efforts may be coordinated so as not to burden or be a nuisance to students, faculty, parents, or the community. F. If occurring off-district premises an additional approval is required from the Superintendent or designee on Form 5830 F1. This level of approval is required when the District is collecting and depositing the funds into their Internal Funds, therefore events such as McDonald's night would not require this approval. G. Contracts with outside suppliers for merchandise to be sold in a fund-raising activity are to be reviewed and approved by the District s Attorney in advance. After legal approval for the contract has been obtained, then the Principal may sign the contract. The staff member in charge is responsible for the merchandise and monies collected. The school will be responsible for any unsold merchandise that cannot be returned to a supplier for credit for any reason. H. The staff member in charge should establish procedures to ensure that all merchandise is stored, distributed, and accounted for properly. I. Upon completion of a fund-raiser, a final report is to be submitted to the Principal within thirty (30) days. (See Form 5830 F2) The financial report does not have to be completed for events at which another organization deposits the collected monies into their account and remits a check to the school. This report is to be completed when merchandise is sold by students or the school (such as yearbooks, candy, t-shirts or coupon booklets) or tasks are performed by students or the school Internal Funds Procedures Manual 46 04/10/2015

48 (such as car washes, walk-a-thons, read-a-thons) and the monies collected are being deposited into the school's internal funds bank account. The report should state: 1. cost of items or merchandise; 2. amount of money projected and amount of money raised; 3. any differences between the actual activity and the planned activity; 4. any problems that occurred and how resolved; 5. when and where funds were deposited; 6. if merchandise was involved, how many items were offered for sale, how many sold, the amount of money collected, and the disposition of any unsold items. J. No staff member is to accept any special gifts or bonuses of more than nominal value offered by an outside supplier or vendor for any reason or purpose. K. Fund-raising activities will not be permitted if they interfere with the District's educational program on nutrition. L. No house-to-house canvassing is allowed by any student for any school or school-related purpose. M. If an activity involves the students providing a service in return for money, such as a car wash, a member of the instructional staff shall supervise the activity at all times. His/Her responsibility is to ensure the service is provided in a proper manner and also the safety and well-being of the students and the property of both the purchaser and the owner of the site. N. Any fund-raisers that require students to exert themselves physically beyond their normal pattern of activity, such as "runs for...", must be monitored by a staff member who has the necessary knowledge and training to recognize and deal appropriately with a situation in which one (1) or more students may be over-extending themselves to the point of potential harm. The primary mission of the school is to educate the students of the community by providing specific learning experiences consistent with the curriculum approved for Collier County Public Schools. On occasions, it becomes desirable for an organization associated with the school to sponsor fund-raising activities to augment the resources available to the school. There are also occasions when community interest groups or school partners desire to seek the cooperation of the schools to enhance a community project. The mission and purpose of civic organizations, service organizations, clubs, and other charitable causes are recognized as valuable community assets. However, valuable instructional time may be sacrificed if a school participates in a community project or fund raising activity which does not relate directly to the needs of the instructional program of the school. Internal Funds Procedures Manual 47 04/10/2015

49 This policy is established setting forth guidelines and requirements for school participation in fund-raising activities and the public solicitation and sales in which the school is affected. School sponsored groups, such as clubs, athletic teams, bands, parent/teacher organizations and parent/teacher associations often have a desire to generate funds to support projects or activities beyond the scope of programs funded directly by the school district. B. TWO (2) TYPES OF FUNDRAISING ACTIVITIES ARE DELINEATED Type 1) Fund raising activities sponsored by school groups (classes, clubs, PTO/PTA, booster s clubs, etc.) for the benefit of the school. Authorization for fund-raising activities by the school shall be governed by the following criteria and guidelines: a. The Principal shall be responsible and accountable for the decision to participate in any activity within the guidelines established by this policy. The Principal shall review the means by which permitted fund raising is to be conducted prior to approving participation in the activity. The safety and well-being of the student is of paramount concern in the approval of the activity. b. Students are not permitted to participate in door-to-door solicitation of charitable contributions, sales or fund raising activities. c. Solicitation on public highways is not permitted. d. For group fund-raising activities outside the school, either a school sponsor or a parent chaperone shall be present (e.g. car washes, rummage sales, etc.) e. Fund-raising activities that encourage parents and other patrons to come to the school are preferable. These activities may include, but are not limited to dinners, school carnivals, fairs, gift shops, and dramatic/musical productions. f. The fund raising activities in which students are permitted to participate shall be limited to out-ofschool time and may not interfere with regular classroom hours. Participation on the part of a student is to be voluntary and subject to parental approval. g. Monies collected for fund raising activities within the school are subject to regulations governing the accounting for school internal account funds. Type 2) Public solicitation and sales for organizations not directly associated with the school (such as American Cancer Society, United Way, Harry Chapin Food Bank, etc.) for the benefit of worthy community projects (such as foundations, charity events, food drives, etc.) Additional restrictions are established for public solicitation and sales fund raising activities external to the school program for which sponsorship is vested in an organization not directly associated with the school district. a. The Principal shall be responsible and accountable for the decision to participate in any public solicitation and sales within the guidelines established by this policy. Internal Funds Procedures Manual 48 04/10/2015

50 b. Solicitations which are sponsored by or which provide advertising for a commercial, profit-making firm are prohibited unless approved by the Superintendent. c. Each activity is to foster a good school-community relationship. d. Individual schools may not participate in more than two sponsored activities in any one school year when the activity affects the majority of school membership. e. The organizer of the activity is expected to have made comprehensive plans prior to a school visit so as to minimize the time required of the cooperating school staff members. f. Announcements may be made of the approved activity indicating the means of communicating with the sponsoring group. Students may be permitted to sign-up for participation at the school and the sponsor may provide the participant with essential information for participation. g. The name of the school may not be used in the activity nor may the sponsor imply the school or Collier County Public Schools have endorsed the activity in any manner. h. The accounting or any other management of the funds shall be arranged with persons who are not employees of the Collier County Public Schools. Employees who are members of the sponsoring organization are not so restricted when participating during off-duty hours and while not on the school premises. i. School staff may not sell items for personal gain or as the personal representative of a charity or community organization to students at school or at school related activities. C. GENERAL All fund-raising activities shall be conducted in accordance with School District rules. 1) Raffles and other activities of chance shall not be conducted for school connected activities. 2) Programs for which admission is charged or for which donations are received shall not be held during school hours, except as approved by the Superintendent. Elementary student participation in offcampus fund-raising activities, whether sponsored by the school or any school-related organizations, shall be conditional upon the school having on file the written parental consent for each activity. 3) When any school organization or group is involved in a fundraising activity or any function exposing the school district to extraordinary liability, approval must be obtained in advance from the superintendent or designee. 4) All staff shall conform to the conditions and such other administrative directives as may be issued by the Superintendent Internal Funds Procedures Manual 49 04/10/2015

51 5) Each school shall regularly evaluate its fund-raising projects and activities as they relate to school programs, the promotion of educational experiences, the time involved for students and teachers, and the additional demands made on the school community. 6) A Parent Teacher Association or other organization connected with the school may sponsor fund-raising activities provided that school work and time are not affected. Such activities shall be conducted in accordance with the policies of the School District and with the approval of the Principal. D. BOOSTERS CLUBS All athletic and band boosters, PTA or PTOs which operate outside of Internal funds as a separate entity are considered a Cooperative Organization. All Cooperative Organizations must follow the guidelines as listed in Cooperative Activities section of this manual. Internal Funds Procedures Manual 50 04/10/2015

52 14. COOPERATIVE ACTIVITIES A cooperative activity is one in which the school participates with groups which operate outside of Internal Funds as a separate entity such as the PTO/PTA or booster clubs through planning, staging, or conducting school-related activities. Such activities may be held on or off the school grounds and will usually take the form of fund-raising events such as carnivals, paid entertainments, or food sales. Such activities must be approved by the principal and be beneficial to students. District procedures shall be followed to provide appropriate accounting for funds and to ensure compliance with policies contained herein. If a share of the proceeds is to be disbursed to the cooperating group, a prior written agreement should be executed. Internal Funds Procedures Manual 51 04/10/2015

53 15. SCHOOL STORE Merchandise that is needed to facilitate classroom instruction and to accommodate students may be sold in the School Store. The School Store may also sell school spirit / logo wear. The School Store must be a separate category within the Internal Funds and classified under the School Wide Events & Operations umbrella. A. CHANGE FUND A Change Fund/Cash on Hand may be set up for the School Store and accounted for on the Trial Balance Report. Cash sales are not to be retained in the School Store and used for this purpose (see Change Fund section 7 of manual). The establishment of a Change Fund/Cash on Hand at the beginning of the new fiscal year will require the issuance of a check. The check will be recorded from the Checking account and charged to a Change Fund Account. The change fund is subtracted out of the gross cash derived from the event and returned to proper storage. Only the sales dollars are turned into the school bookkeeper and deposited in the bank. B. MONIES RECEIVED Monies collected from School Store sales should be turned over to the Bookkeeper on a daily basis. A Monies Collected form, FA-4-P (Refer to Printable forms) must accompany the monies when remitted to the Bookkeeper. All monies must be forwarded intact to the Bookkeeper. It is not required that student names be listed on the Report of Monies Collected form as required in other collection procedures. However, inventory controls should be established to provide accountability of merchandise and sales. C. EXPENDITURES The only expenditures from the School Store account should be for those items that are sold through the School Store. Expenditures using the profits should not be coded to the School Store category. Profits should be moved to the category the expense benefit. See profit section 15.F. D. INVENTORY School may elect an annual inventory of the School Store at the end of each fiscal year. E. SALES TAX Items resold through the School Store are subject to Florida Sales Tax. Internal Funds Procedures Manual 52 04/10/2015

54 1) Schools have a special provision in the Florida Sales and Use Tax Laws that allows them to pay sales tax directly to the vendor at time of purchase thus avoiding charging sales tax when item is sold in store. Sales tax in this situation is based upon the purchase price of the goods purchased for resale. The tax is considered part of the cost of the items purchased by the school and the tax is not collected separately when sold by the School Store. 2) To pay sales tax when purchasing items for resale, cross out the tax exempt number on the School Internal Funds Purchase Order form. This may assist the vendor in knowing that sales tax is due. 3) If items are purchased for resale from an out-of-state vendor who will not accept payment of Florida Sales Tax, then the sales tax must be collected and paid directly to the Florida Department of Revenue. Sales tax is based upon the sales price of the goods when resold by School Store. 4) If the vendor does not separate the tax on the invoice, a corrected invoice needs to be obtained, or a written statement from the vendor noting that the price includes the sales tax. This will alleviate any potential questions that may arise with the Florida Department of Revenue. F. PROFITS Profits from the School Store operation may be transferred to the general fund or other designated accounts that benefit all students at the discretion of the Principal. Sufficient funds shall be retained in the School Store account to provide adequate funding for future purchases of merchandise. Internal Funds Procedures Manual 53 04/10/2015

55 16. TICKET SALES A. SALE OF TICKETS All tickets for all events to which admission is charged shall be pre-numbered and receipts from the sales of tickets shall be reconciled with the number of tickets sold. Tickets are commonly utilized for after school events such as dances, athletic events, performances, and other events where an admission is charged. The sale of pre-numbered tickets, when used with the Report of Tickets Sold or Admissions form, (refer to printable forms) eliminates the requirement for recording transactions by student names and amount paid by each student. If admission is charged and pre-numbered tickets are not utilized or accounted for in accordance with this section, then all admissions shall be recorded by name and individual amount. Complimentary tickets need approval from the principal. A record of number of tickets given away should be maintained. B. ACQUISITION OF TICKETS Tickets are to be purchased in pre-numbered sequences and adequately accounted for. An exception to purchasing pre-numbered tickets will be allowed for low volume usage by Elementary and Middle schools which desire to produce and number the tickets at school, provided that the following conditions are complied with: 1) The person responsible for ticket production shall provide a memo certifying the amount of tickets produced for the event and the ticket numbers. 2) The memo certifying tickets produced must be attached to a completed Report of Tickets Sold form and retained by the Bookkeeper. 3) Unused or unsold tickets are returned to the Bookkeeper and attached to the Report of Tickets Sold form. 4) Ticket Sales are recorded on the Report of Tickets Sold form. C. REPORT OF TICKETS SOLD OR ADMISSIONS: The Report of Tickets Sold or Admissions form must be completed when tickets are sold for an event. The report provides for accountability of monies collected and is a source document supporting accounting entries. The Report of Tickets Sold forms are to be filed numerically by receipt number with the Report of Monies Collected forms. The process for using the Report of Tickets Sold form is as follows: Internal Funds Procedures Manual 54 04/10/2015

56 1) The Bookkeeper shall enter the following data on the form: a. Nature of Event. b. Location. c. Opponent School (if any). d. Date. e. Ticket Color. f. Beginning Ticket Number(s). g. Selling Price of Ticket. h. Change Fund Amount (if applicable) 2) The form is then given to the ticket seller. 3) The ticket seller shall enter the following data upon completion of the ticket sales: a. Last Ticket Number Sold. b. Signature of Ticket Seller. c. Tally amount of sales vs. amount on hand d. The form is then submitted to the Bookkeeper or designee. 4) The Bookkeeper shall complete the balance of the form, verify the accuracy of all data, indicate the date received, and sign the form in the appropriate space. Multiple Report of Tickets Sold forms for a particular event may be combined on a single Report of Monies Collected form and assigned the same receipt number. However, the forms must be stapled together. Internal Funds Procedures Manual 55 04/10/2015

57 17. YEARBOOKS Yearbooks should not be considered part of the School Store. If sold in the School Store location, the sales must be recorded as a separate transaction. Yearbook transactions should be recorded under a separate category. Yearbook sales are exempt from sales tax. Yearbooks are to be sold to students at the lowest possible cost to afford the maximum number of students the opportunity to purchase the book. The sale of yearbooks should not be construed to be a fund-raising activity. The solicitation for advertisements from businesses or students should be used to defray the cost or price of the yearbook. A. YEARBOOK CATEGORY Yearbook transactions are to be accounted for within a separate Yearbook Class or Yearbook Sales account category. B. SALES TAX Yearbooks, by statute, are not subject to collection or payment of Florida Sales Tax. (f.s Miscellaneous. Exemptions- R) C. EXPENDITURES AND PURCHASES The purchase of yearbooks is not subject to the District s bid or quote provisions. The Yearbook account may be utilized for any necessary expense relating to the production or printing of the yearbook. Expenses would include the actual cost of the printing of the publication, film and developing, and expenses related to Yearbook Committee meetings & seminars. D. MONIES COLLECTED The Monies Collected form should be completed when collecting monies for the sale of yearbooks and ads. The name of the individual making the purchase and amount paid by that individual must be listed. A class roster or list may be utilized and attached to the form if all information is indicated on the attached listing. E. ADVERTISING The Principal may allow advertising in student publications according to the following guidelines: 1) No advertisements may be obscene as to minors under Florida law or promote products or services which minors may not legally purchase. 2) No advertisements may contain libelous material. 3) No advertisements may be accepted which would tend to create a substantial disruption in the school environment. 4) No advertisements shall criticize or promote the beliefs or symbols of any race, religion, gender, or ethnic group. Internal Funds Procedures Manual 56 04/10/2015

58 18. FACULTY FUND / SUNSHINE-SOCIAL/ VENDING A. DEPARTMENT/COMMITTEE (GROUPS OF ADULTS) UMBRELLA The school may establish a category for transactions that benefit teachers and staff within Internal Funds. This is the only account within Internal Funds where expenditures may be made which benefit staff members. 1) This account category customarily receives money from teacher vending machines located in the teacher lounge, dues collected from staff members, and other specified donations. 2) Expenses on behalf of staff should be paid from this fund. Expenses may include gifts; get well flowers, staff parties, registration fees for seminars, and conferences. 3) If the proceeds from vending machines have been recorded within this account, then all expenses for the machines shall also be paid from this account. 4) A separate account may be established for vending machines if the school desires to distinguish between vending transactions, dues, and other collections. 5) All items purchased for resale within the faculty fund, sunshine or vending accounts, such as vending machine products or staff apparel, are subject to Florida Sales Tax (see SALES TAX in this manual). Internal Funds Procedures Manual 57 04/10/2015

59 19. TRANSFERS, MODIFICATIONS, ADD A RECORD A. TRANSFERS Transfers are a movement of money at the Principal s discretion between account categories. Occasionally, a situation will require that funds from one account be transferred to another account. Moving funds from one account to another increases the balance in one account for the amount of the transfer while decreasing the balance in the other account for the same amount. This type of transaction is distinguished differently than revenue or an expense. 1) Transfers generally are not used to correct transactions. 2) Transfers should not be made from Restricted Trust accounts intended for a specific purpose. Transfers from scholarship categories to tuition, books, lab fees, etc. are permissible. 3) Transfers should not be made from General categories that benefit all students to categories that benefit a specific group. 4) All transfers should include the sponsor s approval as well as the principal s signature. 5) Transfer forms are printed and kept in numerical order with proper authorization and documentation attached. To correct an error made on a previously posted transfer, a reverse transfer can be done cross referencing the transfer number being corrected. Modifications of a posted transfer can be done by a District Administrator with back up documentation. B. MODIFICATIONS Modifications are used to correct transactions that have been posted to the ledger. 1) Modifications require a reason for change and will provide transparency of previous and current information. 2) Users cannot modify transactions that have cleared the reconciliation process. A District Administrator can modify a cleared transaction with back up documentation. 3) The paper trail of the initial transaction should be noted with the reason and date modified. C. TRANSFER REPORT AND MODIFICATION LISTINGS The Transfer Report and Modification Listings are part of the monthly reporting to the District. These reports summarize all transfers and modifications done for the month. 1) Both month-end reports require the principal/director s signature. Internal Funds Procedures Manual 58 04/10/2015

60 D. ADD A RECORD The Add a Record feature is used to manually record a transaction such as Bank Charges or Interest Earnings. 1) When reconciling monthly bank statements it is necessary to manually enter details of a new record. The new transaction will be added to the ledger. The transaction will adjust the bank account balance as well as the account category used. 2) If the bank statement reflects a regular bank service charge, a record is added (i.e., standard monthly bank service charge, charge for deposit slips, or checks that may have been reordered). The record should be entered using the transaction type of service charge or debit memo and include a detailed description. 3) If the bank statement reflects interest earned, a record is added. The record should be entered using the transaction type of interest or credit memo and include a detailed description. 4) Schools required to pay Sales Tax electronically will Add a Record representing the amount paid to the Department of Revenue using the transaction type debit memo and including a detailed description. 5) Occasionally there may be a bank error which will require Adding a Record using the category Bank Errors Pending. When the correction appears on the bank statement, an opposing Record will be added. 6) Certain direct deposit transactions resulting from the acceptance of credit card or ACH payments will require adding a record. These transactions should have detailed back-up documentation outlining who the funds were received from and why was payment received. Internal Funds Procedures Manual 59 04/10/2015

61 20. MONTHLY REPORTS The Financial Reports are designed to provide financial information necessary for administration and management of Internal Funds and compliance with federal and state regulations, and School District policies. Reports are to be completed by the 15th of the subsequent month. It is very important to complete reports on a timely basis in order that you and your Principal know the status of your internal funds and to avoid any audit exceptions. Monthly reports with original signatures are to be submitted to the District Accounting Department. A. REQUIRED REPORTS The following monthly reports are required to be completed for each bank account and sent in to the Accounting Department: 1) Report 11M Bank Reconciliation Details including principal s and bookkeeper s signature 2) Report 11L Reconciliation Overview 3) Report 13 Transfers Report including principal and bookkeeper s signatures 4) Report 15 Modified Transactions Listings including principal signature 5) Report 10 Trial Balance (Umbrella Date Range) 6) Bank Statement Copy of Current Monthly Bank Statement B. DESCRIPTIONS OF REPORTS 1) Report 11M Bank Reconciliation Details report is computer generated using the District s approved accounting program. It is important to reconcile the school s/department s checking account on a monthly basis. When the bank statement is received, it should be immediately reviewed to note any bank service charges, ISF checks/charges, or discrepancies. Be sure to receive copies of both sides of the canceled checks with the monthly bank statement. This report is to be completed no later than the 15 th of the following month and signed by the Principal unless otherwise directed by the Accounting Department. THE BANK RECONCILIATION DETAILS REPORT REQUIRES THE SIGNATURE OF THE PRINCIPAL. If the Principal is not available to sign the report, note this on the report and have the Assistant Principal sign. The Bank Reconciliation Detail report provides the following information: a. Beginning and Ending Bank Balances b. Cleared Checks/Payments and Deposits/Credits c. Uncleared Checks/Payments and Deposits/Credits d. Adjusted Bank Balance e. Ledger Ending Balance Internal Funds Procedures Manual 60 04/10/2015

62 2) Report 11L Reconciliation Overview report is computer generated using the District s approved accounting program. This report must be completed no later than the 15th of the following month, unless otherwise directed by the Accounting Department. The Reconciliation Overview Report does not require the signature of the principal; however, the principal should review. The Reconciliation Overview Reports provides the following information: a. A listing of all the categories sorted by umbrella types b. Beginning of the year opening balances for each category c. Expenses/Revenue, Transfers Out/In for each category d. Ending balances for each category e. Cashbox transactions will not be included in category balances 3) Report 13 Transfer Report is computer generated using the District s approved accounting program. This report must be completed no later than the 15 th of the following month, unless otherwise directed by the Accounting Department. The Transfer Report requires the signature of the principal and bookkeeper. The Transfer Report provides the following information: a. A listing of all transfers done for the month being reconciled b. The date, category name, transfer number, description and amounts 4) Report 15 Modified Transactions Listing report is computer generated using the District s approved accounting program. This report must be completed no later than the 15 th of the following month, unless otherwise directed by the Accounting Department. The Modified Transactions Listing requires the signature of the principal. The Modified Transaction Listing Report provides the following information: a. A listing of all transactions that have been modified for the month being reconciled b. The previous information of the transaction before modification c. The current information of the transaction after modification d. Date changed e. Reason for Change Internal Funds Procedures Manual 61 04/10/2015

63 5) Report 10 Trial Balance (Umbrella Date Range) report is computer generated using the District s approved accounting program through the Report Menu. The report start date should populate the earliest date (oldest transaction on the ledger) and the end date being the last day of the month being reconciled. The format should display transfers and sort by category number. This report must be completed no later than the 15 th of the following month, unless otherwise directed by the Accounting Department. The Trial Balance Report does not require the signature of the principal; however, the principal should review. The Trial Balance (Umbrella Date Range) Report 10 provides the following information: a. A listing of all the categories sorted by umbrella types b. Beginning of the year opening balances for each category c. Expenses/Revenue, Transfers Out/In for each category d. Ending balances for each category including cashbox transactions e. Bank Account Transfers f. Total Bank Account(s) Balances g. Cash on Hand and Cashbox Summary 6) Bank Statement; A bank statement is required to support the figures used for reconciliation of each bank account. An on-line bank statement can be obtained to complete the monthly reports and meet the 15 th of the month deadline; however, an original bank statement including cancelled checks should be received by mail and retained at the school site. C. BANK RECONCILIAITON Bank Reconciliation Process is completed using the approved accounting program 1) Enter the ending balance as stated on the bank statement 2) Clear all checks and deposits appearing on the bank statement. 3) Add records for interest earned, bank service charges, direct deposits or ACH transactions 4. When your bank reconciliation is in balance, finish reconcile, print reports, and send to Accounting Department with the other monthly reports keeping copies on file. Internal Funds Procedures Manual 62 04/10/2015

64 D. BANK RECONCILIATION OUT OF BALANCE Occasionally more time and research is needed to reconcile the monthly bank statement. The following may lend assistance in reconciling: 1) Make sure you use the last day of the prior period for the beginning balance date on your bank reconciliation, and the last day of the current period for the ending balance date. 2) Also, when clearing your checks and deposits in the system, remember to clear them at the amount that cleared the bank. If the bank cleared it for a different amount that was entered into the accounting system, determine whether to perform a modification or add a record. 3) Look for any transactions that are on the bank statement but not on the ledger. If you are still out of balance, seek assistance from the Accounting Department and permission for a time extension past the 15 th of month deadline. E. NSF CHECKS NSF checks or bad checks are those checks that have been deposited into the Internal Funds bank account, but have been returned primarily due to non-sufficient funds or closed accounts. If there are NSF check transactions on the current bank statement, an entry in the NSF Tracker will be required in order to reconcile properly. REFER TO NSF Procedures found in RECEIPTS section of manual. F. BOOKKEEPING ERRORS AND BANK ERRORS Occasionally, discrepancies occur between transactions appearing on the bank statement and the accounting entries recorded within the Internal Funds accounting records. 1) Bookkeeping Errors If the discrepancy is the result of a bookkeeping error, then the Bookkeeper locates the transaction on the Ledger Inquire and performs a modification. 2) Bank Errors A bank may erroneously debit/credit a school s bank account. If this transpires, the school should immediately contact the bank and request a correction from the bank. A record will be added using the category Bank Errors Pending. When the correction is received an opposing entry is recorded. Internal Funds Procedures Manual 63 04/10/2015

65 21. RETENTION OF RECORDS A. STATE REQUIREMENTS Chapters 119 and 257 of the Florida Statutes provide that no public official may mutilate, destroy, sell, loan, or otherwise dispose of any public record without the consent of the Bureau of Records and Information Management of the Department of State. Provided applicable audits have been released, records may be disposed of in accordance with procedures established by the Department of Records and Forms Management. B. DISTRICT REQUIREMENTS: CCPS BOARD POLICY 8320 The Superintendent is the officer charged by law with the responsibility of maintaining the office having public records and is the custodian thereof. The Bureau of Archives and Records Management The Bureau of Archives and Records Management establish standards for controlling, retaining, destroying, and preserving public records. The Superintendent must adhere to these standards. Records Management Responsibilities The Superintendent has the responsibility to comply with State statutes, and designate a Records Management Liaison Officer (RMLO) for the District. The Records Management Liaison Officer functions as the primary point of contact between the District and the Bureau of Archives and Records Management. Records Retention Schedule Each School District is required by law to submit a request for records retention to the Bureau of Archives and Records Management for all record series not included in a general schedule being used by the District. Each records retention schedule is analyzed by the Bureau to determine the document value and thus establish a period of time for which the documents are to be retained. In addition, the records retention schedule is reviewed to determine whether the records merit further retention by the State in the Florida State Archives. Once approved by the Bureau, the records retention schedule becomes the submitting District's official retention schedule for the record. The Records Management Liaison Officer has the responsibility of maintaining existing records retention schedules and submitting new and updated requests to the Bureau. Records Disposition/Destruction The Superintendent shall develop administrative procedures regarding records disposition and destruction. Refer to your on-site Records Coordinator for guidance. Examples of such records for Internal Funds could include but not limited to Check Requisitions, Checks Issued Statements, Check stubs and supporting documentation, bank statements, canceled checks, Report of Monies Collected forms, Deposit Statements, One-Page Bank Deposit forms, Itemized Check Listings, journals, ledgers, financial reports, School Internal Funds Purchase Order forms, and serialized forms. Requests for authority to destroy records must be submitted to the District s Records Management and Property Control Department. No records pertaining to Internal Funds may be destroyed or otherwise disposed of without prior written authorization. Internal Funds Procedures Manual 64 04/10/2015

66 22. AUDITS A. REQUIREMENTS: CCPS BOARD POLICY 6830 The School District requires, after the close of the fiscal year, that an audit of all accounts of the District be made annually by an independent, certified public accountant, or the State Auditor's Office. The audit examination shall be conducted in accordance with generally accepted auditing standards and shall include all funds over which the Board has direct or supervisory control. If an audit contains a significant finding as determined by the State Auditor s Office, the Board shall conduct an audit overview during a public meeting, and, in so doing, shall discuss the significant finding(s) made by the Auditor General. The District shall also prepare and publish an audited statement of the financial condition of the District at the close of each fiscal year. State regulations require the Internal Funds activity to be audited annually. The Financial and Program Cost Accounting and Reporting for Florida Schools (Red Book) states: 1) The School District shall provide for an annual audit of Internal Funds. 2) In accordance with the Florida State Board of Education Rule 6A-1.087(2), the signed, written report of the audit shall include notations of any failure to comply with Florida Statutes, State Board of Education Rules, and rules of the School District. The report, which must also provide commentary as to financial management and irregularities, shall be presented to the District School Board while in session and filed as a part of the public record. B. AUDIT OBJECTIVES The purpose of an audit is to accomplish many objectives, such as: 1) Provide reasonable assurance that financial statements are materially free of errors or other irregularities. 2) Ascertain compliance with all applicable statutes, federal and state regulations, State Board Rules, and School District Policies. 3) Report weaknesses in accounting, management, and internal controls, and recommend corrective actions. 4) Ascertain the effectiveness of management controls. 5) Evaluate the internal control structure and environment to assure assets are protected and safeguarded. 6) Upon request of management, a performance audit may be performed to review the effective and efficient use of resources. Internal Funds Procedures Manual 65 04/10/2015

67 23. FEDERAL TAX We frequently receive inquiries regarding our federal tax status when grants are being prepared to outside organizations. Many of the outside organizations are limited to making donations to Section 501, Code of Federal Regulations, tax-exempt non-profit entities. The District is not a 501 tax-exempt entity, but is exempt as a political subdivision of the State of Florida. A. FEDERAL EMPLOYER TAX IDENTIFICATION NUMBER (FEIN) Periodically, administrators are requested to provide the District s Tax Identification Number (T.I.N. or FEIN) The District number is: Internal Funds Procedures Manual 66 04/10/2015

68 24. SALES TAX A. SALES TAX EXEMPT CERTIFICATE NUMBER The School District has a State sales tax exemption number for purchases. The State has approved the Board s request to add schools to the District s Certificate of Exemption. Our tax exemption certificate (in Florida only) will exempt the District from paying State sales tax if purchases are made with a governmental check and are for the manner of instruction. Purchases that are made for the school and not resold are exempt from Florida sales tax. The District s Certificate Number is: C-2 This number is not available for any group that operates outside of Internal Funds as a separate entity (PTA, PTO, or Booster Clubs) to use on their behalf. 1) Taxable Purchases d. Purchases made and paid for by a staff member, personally, are subject to Florida sales tax. Reimbursement to staff member for purchases can include sales tax. e. All items purchased for resale, regardless of profit, are subject to Florida sales tax. If the sales tax is paid to the vendor at time of purchase, sales tax does not have to be charged when items are sold. If the sales tax is not paid to the vendor at time of purchase, sales tax must be included in the sales price and submitted to the Department of Revenue. f. If items are purchased for resale from an out-of-state vendor or a vendor will not accept payment of Florida sales tax, they are not registered with the State of Florida. If at all possible, an alternative vendor should be sought. g. If the vendor does not separate the tax on the invoice, a corrected invoice should be obtained, or a written statement from the vendor noting that the price includes the sales tax. This will alleviate any potential questions that may arise with the Florida Department of Revenue. B. REGISTERING WITH STATE OF FLORIDA TO PAY SALES TAXES Schools unable to pay sales tax to their suppliers on items being resold must include or collect sales tax on their sales and submit to the Department of Revenue. To register for a Resale Certificate, enroll for electronic filing and to pay Florida state sales tax utilize the Florida Department of Revenue website at After registration is completed a Resale Certificate and information package that includes detailed instructions & due dates for filing and submitting tax payments will be sent by mail. Internal Funds Procedures Manual 67 04/10/2015

69 Failure to file and remit sales tax when required could subject the school and the District to penalty and interest charges. 1) Taxable Sales a. Food and beverages cooked or prepared on the seller s premises and sold ready for immediate consumption are subject to sales tax. (i.e. concessions) b. Food and beverages sold through vending machines or other dispensing devices located in a gymnasium, teachers lounge, corridor or other area accessible to the general public and not specifically designated for student dining are subject to sales tax providing that sales tax was not paid to supplier. c. Items sold for fund raising purposes, such as candy, t-shirts, spirit wares, flowers, etc. are subject to sales tax if tax was not paid to supplier. d. Sale of uniforms or T-Shirts for personal use is subject to sales tax providing that sales tax was not paid to supplier 2) Non-Taxable Sales a. Sales of yearbooks, programs, agendas, directories and similar publications distributed by schools are not subject to sales tax. b. Sales of advertising in a yearbook or similar publication or on a scoreboard or similar venue distributed or displayed by schools are not subject to sales tax. c. Sales of coupon books or cards are not subject to sales tax. Sales tax is paid to vendor when coupon is redeemed. d. Admission charges or tickets to an event sponsored by a school are not subject to sales tax. e. Locks or Locker rental fees are not subject to sales tax. Refer to Florida Administrative Code 12A-1 or Florida Department of Revenue for more information Internal Funds Procedures Manual 68 04/10/2015

70 25. BEGINNING OF YEAR PROCEDURES A. PROCEDURES Each year the Accounting Department will distribute Beginning -of -Year instructions including Rollover procedures. Refer to Section 26 B. The Rollover process must be completed prior to reconciling the July Bank Statement. B. JULY BANK RECONCILIATION The July bank statement must be reconciled regardless of whether there were any July transactions. If the May or mid-june cut-off bank statement was utilized to reconcile the prior year s books, the June and July bank statements must be used simultaneously to reconcile the July bank statement. If the June s month-end bank statement was used to reconcile the prior year s June books, follow the normal bank reconciling procedures for July, utilizing only the July bank statement. C. ESTABLISHMENT OF PETTY CASH AND CHANGE FUNDS (REFER TO SECTION 5) Internal Funds Procedures Manual 69 04/10/2015

71 26. YEAR-END PROCEDURES A. CLOSING FISCAL YEAR The accounting records of all schools must be closed by June 30 of each year. The Accounting Department will communicate step by step closing. For Bookkeepers departing for summer break a closing/check out date will be determined in advance, in which case the May 31 or a mid-june bank statement would be used to reconcile the year-end books. For Bookkeepers with longer contracts the June 30 bank statement would be used for reconciling whereas all June transactions will be recorded through the end of the month. All financial reports must be submitted to the Accounting Department no later than July 15. 1) The year-end process should be approached as follows: a. Void all stale dated disbursement checks. b. Retain data on all uncollectible NSF checks. c. Replenish/Redeposit Petty Cash d. Redeposit Change Funds e. Consider Investing excess funds from the checking account f. Consider performing inventory on all school merchandise held for resale in School Store, supplies, uniforms, t-shirts, or vending supplies g. Prepare a list of outstanding purchase orders. The list should include the vendor s name and amount owed by the school. There should be sufficient funds to cover these purchases. Instructions should be given to vendors when to ship merchandise upon school s re-opening. h. Prepare the required monthly & year-end reports i. Keep current year records and prior year records in school office files. Older years records are boxed up and marked clearly with the school name, year, and contents. Consult your locations Records Coordinator for further directions 2) The District wide consolidated reports are completed after all schools/departments have completed their close out process. These year-to-date figures & ending bank balances are verified by and become part of the external Auditors annual report. B. ROLLOVER Rollover is a term used to describe the closing of one school year and bringing forward ending balances to the next year s opening balances. The Accounting Department will provide step by step Rollover instructions prior to the end of the fiscal year. The rollover process is completed at the opening of the next school year. This must be completed prior to reconciling the July bank statement. Internal Funds Procedures Manual 70 04/10/2015

72 27. DISTRICT WIDE SELECTED SUBJECTS OF INTEREST TO SCHOOLS Refer to: Selected Subjects of Interest on District website. A. LOCATIONAL BUDGETS In rare or emergency instances, under extenuating circumstances, it is appropriate for principals to expedite purchasing of materials, supplies and/or athletic and academic program costs through their respective activity funds. Such costs would normally be processed against their locational budget through the Purchasing and Accounting Departments. It is not the intention of Internal Funds to purchase items that are provided for by locational resources. In addition, the practice of claiming reimbursement results in unnecessary paperwork. The following are circumstances in which the use of internal accounts with the expectation of reimbursement through locational funds or otherwise, is not appropriate: 1) Internal accounts should not be used for the purchase of materials, supplies, etc., for grant-funded programs. All grant-related expenditures should be charged directly to the appropriate project. This will assure that all grant-related expenditures are adequately accounted for. 2) In addition, internal accounts should not be used for the purchase of equipment. All equipment costing $1000 or more should be purchased through your locational budget. If the funds are not available in your locational budget, you may send a check from your internal accounts along with a request to increase your budget for the equipment you wish to purchase. This assures that all District equipment can be tagged and properly accounted for. B. REIMBURSEMENTS FROM LOCATIONAL BUDGET TO INTERNAL FUNDS Principals are reminded that they are subject to the School District Policies. In the event that they were in a situation where internal funds were used and want to request reimbursement from locational funds the following procedure should be followed: To obtain a reimbursement from the locational budget, forward a summary memo, signed by the principal, to the Director of Accounting that itemizes the dollar amounts. Include the center number, the function/object (and project, if applicable) account of your locational budget to be charged. Attach a copy of the check and invoices that identifies the item(s) purchased. A check will then be issued to the school from locational funds for deposit to your internal accounts. Internal Funds Procedures Manual 71 04/10/2015

73 The following are some situations where reimbursements from the locational budget to internal funds occur: 1) Travel Expenses refer to CCPS BOARD POLICY & PROCEDURES 6550 a. Travel expenses may be paid from Internal Funds, subject to restrictions outlined herein, and in School District policies. Such travel must be properly authorized and all claims must be adequately documented. Travel expenses must relate to a student activity. Administrative costs are not permissible. b. Per diem, meals, lodging, and other travel reimbursements must meet the legal limits established by state law and School District policy. This information can be located on the Leave Request form. c. An Expense Report for Travel form (In County) or Form (Out of County) with receipts for lodging and special reimbursable expenses must be filed with the Bookkeeper. 2) High School Activity Travel Each year, the high schools receive a locational budget allocation for activity travel. The term "activity travel" is used because the allocation represents athletic, band and academic competition travel expenses. Current budget coding is These funds can be used to reimburse expenses paid from a school s internal funds. The principal must make a request for reimbursement in writing with proper documentation attached of expenses paid. Keep in mind, that even though budget capacity is under , reimbursements will be coded to the proper function & object code related to each expense and may require a budget amendment to move funds to the appropriate coding. For example reimbursement for chartered buses will be coded to An online budget amendment must be done if expenses for activity travel are incurred in other object codes. Meals when overnight lodging is required and incurred may be made directly by Internal Funds to the employee along with the lodging payments. An Expense Report for Travel shall be completed as supporting documentation for the payment from Internal Funds. Meal payments within Internal Funds must relate to a student activity. Administrative costs are not permissible. 3) Petty Cash Replenishment Petty cash funds are authorized for the purpose of making small expenditures for the operation of schools with the intentions that the expenditures will be charged against the locational budget during the replenishment process. Refer to Section 7 of this manual. C. INTERNAL FUNDS TRANSFERRED TO LOCATIONAL BUDGET In some cases, it is necessary to forward funds from internal funds for deposit to the locational budget. A Request for a Deposit of Attached Check form needs to be completed to accompany payment indicating the center number, function, object and project number, if applicable, so that funds can be applied appropriately. At times, the District may request payment from internal funds for such things as salaries, tuitions or nutritional services of which an invoice or documentation should accompany payment. Internal Funds Procedures Manual 72 04/10/2015

74 The following are some situations where a check from internal funds would be deposited into the locational budget: 1) Use of School Buses Occasionally District buses will be used to transport students whereas funds were collected from students to cover the cost of transportation as part of an irregular field trip. The Transportation Department will charge the school s locational budget for the expenses incurred. A check from internal funds payable to the District will be deposited to defray the transportation cost. 2) Salaries and Fringe Benefits Occasionally an employee will be called upon to perform services beyond their basic employment contract. All employees must be paid through the District payroll and charged against an FTE allocation using the locational budget coding. When funding for this service is obtained through the schools internal funds, a check would be issued to the District including both salary and fringe benefits, if any, for deposit defraying the payroll costs. Internal Funds Procedures Manual 73 04/10/2015

75 28. DEFINITIONS This section contains definitions of terms used in this guide and such additional terms as seem necessary to achieve common understandings concerning financial accounting procedures for internal funds. Internal funds are defined as all local school funds derived by any public school from all activities or sources. The glossary is arranged alphabetically with appropriate cross-referencing where necessary. Some of the definitions shown are taken or adapted from the recommendations of the National Committee on Governmental Accounting. Others have been taken or adapted from Handbook I and Handbook II in the State Education Records and Reports Series. ACCOUNT - A record of financial transactions that are similar in terms of a given frame of reference, such as purpose, objective, or source. ACCOUNTING PERIOD - A period of time for which financial statements are prepared. (i.e., July 1 through June 30). ACCOUNTS PAYABLE - Unpaid balances or invoices against an internal fund which are owed. ACCOUNTS RECEIVABLE - Amounts owed to the internal funds. ACCRUAL BASIS - Recording of revenues and expenditures at the time revenue is earned or at the time of an expenditure results in a liability regardless of when the actual cash receipt or disbursement occurs. ACH Automated Clearing House, which is a network that electronically processes money ASSET - Something of value that is owned by an entity. ASSETS, CURRENT - Cash and other assets readily converted into cash, such as accounts receivable, inventory, and some prepaid expenses. ASSETS, FIXED - Land, buildings, machinery, furniture, and other equipment which the school system intends to hold or continue in use over a long period of time. "Fixed" denotes probability of intent to continue use or possession, and does not indicate immobility of an asset. AUDIT - An examination of records and documents by an auditor in the process of securing evidence for one or more of the following purposes: (a) determining the propriety of completed transactions, (b) ascertaining whether all transactions have been recorded, (c) determining whether transactions are accurately recorded in the accounts and in the statements drawn from the accounts. BALANCE - The difference between the total debits and the total credits of an account; the total of an account containing only debits or only credits. BANK DEPOSIT - The total amount of money taken in and recorded on receipts for a specified time period and deposited intact with a depository. CANCELLED CHECK A record that a check has been paid through the bank account Internal Funds Procedures Manual 74 04/10/2015

76 CAPITAL OUTLAY - Expenditures for land or existing buildings, improvement of grounds, construction of buildings, additions to buildings, remodeling of buildings, or equipment. CASH - Currency, checks, postal and express money orders, and bank deposits including certificates of deposit. CASH BASIS - The basis of accounting under which revenues are recorded only when actually received and only cash disbursements are recorded as expenditures. CASH DISCOUNT - An allowance received or given if payment is completed within a stated period. The term is not to be confused with "trade discount". CATEGORY A term used to identify an account where funds are recorded. CHANGE FUND - An amount of money obtained by issuing a check to a designated individual for the purpose of making change for a specific event. No expenditures are to be made from these monies. CHART OF ACCOUNTS A listing of account categories by title and number CHECK - A written order on a bank to pay on demand a specified sum of money to a named person, to his order, or to bearer from money on deposit to the credit of the maker. It is canceled when it has been paid by the bank and thus "cleared" and returned to the writer. CLOSING THE BOOKS - The process of putting the account books in order at the end of a month, or a fiscal period, so that a trial balance and financial reports may be prepared. COMMEMORATIVE ITEM - Personalized articles such as class jewelry, announcements, caps and gowns, yearbooks, cards and invitations, insignia, and school pictures. COMMISSION - A share of sale proceeds from any company or individual given the school in return for the sale, rental, or promotion of any items within the school. CONCESSION - The act of granting to an individual or group a right that resides with the school. CONTRIBUTION A term used when paying out funds CROSS REFERENCE A means of making a note and creating an audit trail on corresponding documents that have been adjusted, modified, transferred or voided. DEFICIT - The excess of the obligations of an account over its resources. DEPOSIT IN TRANSIT - A deposit which has been transmitted to the bank and recorded in the school ledgers but was not reflected on the monthly bank statement because it was not received before the bank's preparation of the statement. DEPOSIT, PROPERTY - Money collected from students and held in a school account for return at a designated time for the purpose of covering losses or damages to school-owned supply and equipment items while being used by the students. DEPOSITORIES - Banks or savings and loan institutions where schools conduct the business of depositing and withdrawing money. Internal Funds Procedures Manual 75 04/10/2015

77 DISBURSEMENTS - Money paid out. DONATION A term used when funds are received DOUBLE ENTRY - A system of bookkeeping which requires for every entry made to the debit side of an account or accounts, an entry for the corresponding amount or amounts must be made to the credit side of another account or accounts. DUES - A regular charge made to students for the privilege of being a member of a particular club or student body organization. ELECTRONIC DEBIT A means of a making a payment without the use of a check. ENCUMBRANCE - A restriction of available money by issuance of a purchase order. EQUIPMENT - A material item of a non-expendable nature, such as a built-in facility, a movable or fixed unit of furniture or furnishings, an instrument or apparatus, a machine (including attachments), instructional skilltraining device, or a set of small articles whose parts are replaceable or repairable, the whole retaining its identity and utility over a period of time which is characteristic for items of its class. EXPENDITURES - Decreases in net financial resources. If accounts are kept on the accrual basis, this includes total charges incurred, whether paid or unpaid. On the cash bases, payments are termed disbursements. EXPENSE, TRAVEL - Expenses incurred by students and sponsors of a school activity in connection with travel related to the activity other than those expenses directly chargeable to student transportation. FIDELITY BOND - A bond guaranteeing the school district against losses resulting from the dishonest actions of employees. FINANCE CLERK - Person assigned responsibilities for internal accounts bookkeeping. FINANCIAL STATEMENT - A formal written presentation which sets forth information concerning the financial condition of the school internal funds. FISCAL PERIOD - Any period at the end of which a school determines its financial condition and the results of its operations, and closes its books. FISCAL YEAR - As it pertains to internal funds, July 1 through June 30. GENERAL LEDGER - A book, file, or other device in which accounts are kept to the degree of detail necessary to summarize the financial transactions of the school. General ledger accounts may be kept for any group of receipts or expenditures on which an administrative officer wishes to maintain fiscal control. GIFT - Something of value received for which no repayment or special service to the contributor is expected. GRANT - Money received by a school activity for which no repayment is expected but for which certain conditions exist relative to the disbursement of funds. Internal Funds Procedures Manual 76 04/10/2015

78 INACTIVE ACCOUNT - An account is considered inactive upon declaration of the principal when; (1) no financial transactions have occurred within one year and the need for the organization has passed; or (2) a class has graduated. INTACT, OR DEPOSIT INTACT - The practice in which money is presented to a bank or bookkeeper for the credit of the school's internal fund in the same form as received. This means that any receipt of funds in the form of cash shall be deposited as cash. The cashing of a check from funds on hand would be a violation of this concept as would be the substitution of a check for cash. INTERNAL CONTROL - A plan of organization under which employees' duties are so arranged, and records and procedures so designed, as to make it possible to exercise effective accounting control over assets, liabilities, revenues, and expenditures. For example, under such a system, work is subdivided so that no one employee performs a complete cycle of operations. The procedures to be followed are definitely laid down and such procedures call for proper authorizations by designated officials for all actions to be taken. INVENTORY - The cost of supplies and equipment on hand not yet distributed to requisitioning units. INVENTORY RECORD - A detailed list or record showing quantities, descriptions, values, units of measure, and unit prices. INVESTMENTS - Temporarily idle funds placed in interest earning accounts. INVOICE - A vendor's notification of merchandise provided or services rendered to a purchaser with the quantity, prices, and charges stated. Other information customarily shown on the invoice is the customer's order number, order date, date of delivery or shipping, and terms of payment. Journal - The accounting record in which financial transactions of the school are formally recorded for the first time. ITEMIZE To list the individual items or parts of. LEDGER an accounting of bookkeeping entries is which business transactions are recorded LIABILITIES - Debt or other legal obligations arising out of transactions which are payable but not necessarily due. (Encumbrances are not liabilities, they become liabilities when the services or materials for which the encumbrance was established have been rendered or received.) MEMORANDUM (MEMO) ACCOUNT - An informal record of an internal fund transaction that cannot be recorded under the regular financial accounts but for which a record is desired. (i.e. ENCUMBRANCES) MODIFICATION an act of alteration or change NSF Not Sufficient Funds OUTSTANDING CHECK - A check issued and recorded by the school which has not been presented to the bank for payment prior to issuance of the monthly bank statement. OUTSTANDING DEPOSIT - (See Deposit in Transit) OVERDRAWN - A situation in which a check has been written for an amount in excess of that on deposit. An overdraft is the amount by which withdrawals exceed the depositor's available balance. Internal Funds Procedures Manual 77 04/10/2015

79 PERPETUAL INVENTORY - An inventory system which is initiated by a physical inventory and perpetuated by entry of receipts and withdrawals, thereby reflecting current balances on hand for each item. PETTY CASH - Cash paid out in small amounts for authorized expenditures. Petty cash may be used to reimburse persons or to make a direct purchase. (Petty cash funds must be authorized.) Payments must be evidenced by petty cash vouchers which are signed receipts that show the purpose, date, and amount. POSTING - The act of recording to an account in a ledger the detailed or summarized data contained in the documents of original entry. PRE-NUMBERED DOCUMENTS - Checks, receipt forms, tickets, and similar items which have been consecutively numbered and controlled before use. PRIOR AUTHORIZATION - A written approval granting authority to enter into a contract, to obligate funds for a purchase, or to receive a benefit, before such an action occurs. PURCHASE ORDER - A document issued to a vendor authorizing the delivery of goods or services which implies the obligation of funds. RECEIPT a written acknowledgement of having received a specified amount of money RECONCILIATION OF BANK STATEMENT - A statement of the details of the differences between the bank statement and the cash account record to show agreement of the adjusted balances. REFUND - An amount paid back or credit allowed. REIMBURSEMENT - Repayment of authorized expenditures made on behalf of the school's internal fund. REPAIRS, MINOR restoration of a piece of equipment, building or grounds to a usable condition Cost of new construction, renovating, and remodeling are not included here but are considered capital outlay. REPLENISH To make full or complete again, as by supplying what is lacking REPORTS - Written statements of information which are made by a person, unit, or organization for the use of some other person, unit or organization. REQUISITION - A written request, usually from one department to the purchasing officer or to another department, for specified articles or services. RETENTION the act of retaining; the capacity to hold or remember REVENUE the collective amounts of income, money coming in ROLLOVER A term used to represent the closing of a fiscal year s records and opening the next year SALES TAX A state tax on receipts from sales, usually added to the selling price by the seller SKIPPED CHECK A check on which is was not added to the ledger nor used; perhaps damaged in the printer Internal Funds Procedures Manual 78 04/10/2015

80 STATEMENT An abstract of facts, particulars as to show the total STALE DATE The date on which a check is no longer valid STUDENT ACTIVITIES - Direct and personal services for public school students, such as interscholastic athletics, entertainments, publications, clubs, band, or orchestra, that are managed or operated by students under the guidance and direction of authorized adults, and are not part of the regular instructional program. STUDENT ORGANIZATION - Any group of students organized on campus into a single body for the purpose of pursuing common goals and objectives. This includes the various types of student clubs and class organizations which, with proper approval by school authorities, are managed and operated by students under the direction or supervision of authorized adults. SUB ACCOUNTS A classification indicating the types of monies collected or goods/services obtained SUBSIDIARY LEDGER - A record of the financial transactions of a given activity showing the receipts, expenditures, transfers, adjustments, and balances for the activity's account. SUPPLIER A person or business used to furnish items or services SUPPLY - An item of expendable nature that is consumed, worn out, or deteriorated in use; or one that loses its identity through fabrication or incorporation into a different or more complex unit or substance. SUPPORTING DOCUMENTATION - Evidence attesting to the authenticity, accuracy and authority of a financial transaction. SURETY BOND - A written promise to pay damages or to indemnify against losses caused by the party or parties named in the document, through non-performance or through defalcation. For example, a surety bond may be required of a contractor or an official handling cash or securities. TRADE DISCOUNT - An allowance made to those engaged in certain businesses and allowable irrespective of the time when the account is paid. The term should not be confused with "Cash Discount". TRANSFER - Money which is taken from one account and added to another account. Transfers are not receipts or expenditures. TRUST AND AGENCY FUNDS - Funds used to account for money and property held by a governmental unit in the capacity of trustee, custodian, or agent with a specific purpose intended. UMBRELLA A term that identifies a group of account categories all having a similar classification VENDOR a person or agency that sells VOIDED CHECK - A check that was added to the ledger on which an error has been made in writing, such as an incorrect amount, signature, or a discrepancy in the information included. The check is made void by mutilating the signature space and the check is retained. W9 A tax form used to obtain a vendor/supplier s address and Federal Tax Identification Number Internal Funds Procedures Manual 79 04/10/2015

81 29. ADDENDUMS, FORMS, & STEP-BY-STEP GUIDES The following is designed to show samples of forms and reports used. It also outlines specific procedures in the SchoolCash accounting program. All of which, are subject to change and should be routinely updated. FORMS: (click on each form named below to link to District website for most current version) District Standard Chart of Accounts Final Fundraiser Financial Report 5830 F2 Fundraising / Event Proposal 5830 F1 Internal Funds Purchase Order Monies Collected Form Employee Acknowledgement Disclosure Report of Tickets Sold or Admissions Request for Deposit of Attached Checks Vendor Form W-9 STEP-BY-STEP GUIDES: (are attached to this manual) Checks Issued Statement or Check Requisition Credit Card Deposit Procedures Disbursing Cash or Gift Cards for Awards, Scholarships or Goodwill Instructions for Fundraising Form F1 & F2 Monthly Reports to Submit to District Office NSF (non-sufficient funds) Procedures for Changing Banks Procedures for Closing & Opening Checking Accounts Procedures for Posting Investment Interest Earnings Receipt/Deposit Procedures Transferring funds from Checking to Savings or from Savings to Checking Internal Funds Procedures Manual 80 04/10/2015

82 ISSUE CHECKS: Print a Statement or a Check Requisition Create a form for every invoice received. If multiple invoices for one vendor, create multiple forms. Program will ask if you wish to combine checks when multiple invoices are to the same vendor. Note: The date on the form will be the date that prints on your check. If planning on printing checks at a later date, form date needs to be revised. Option 1. Print a Statement listing all forms created. Obtain Principal s signature on the statement. Attach invoice(s) to check stub & file in numerical order. File Statements separately in numerical order. OR Option 2. Print a Check Requisition for every form created. Obtain Principal s approval/signature on each. Attach invoice(s) to check stub & file in numerical order. File Check Requisition separately in numerical order. Summary: TWO (2) area of records 1. Invoices & check stubs attached in numerical order 2. Statements &/or Requisitions in numerical order Voided Checks: Mark the check VOID and remove signature area. 1. File the voided check numerically in area #1 Invoice/Check Stub. 2. Keep corresponding documentation in area #2 Statement/Requisition.

83 Credit Card Deposit Procedures: The following procedure should be followed when credit card transactions are a part of the monies collected that also include cash and/or checks. Note: When credit card transactions do not include cash and/or checks, follow procedures for Adding a Record in the reconciliation module. Begin by verifying the cash, checks, & credit card payments with the monies collected form indicating whose funds and how they will be coded. Proceed to the Deposit/Receipts module in SchoolCash. HANDED IN BY: The field Handed in by should reflect the person/place that turned in the funds and signed the money collected form. CATEGORY INFORMATION: Next, go to the bottom of the form and complete one / the first line of category information and sub codes. Amounts should not be populated at this time. (See **Note below ) TALLY THE QUANTITY: Then, go to the top of the form and tally the quantity of cash/coin/checks received verifying that each type matches up with the monies collected/daily report. AMOUNTS/TOTALS: The total amount of funds collected will automatically populate into the first category listed. Change the amount and enter the additional categories/amounts/sub codes suitable to the total deposit. (See **Note above) The red balance figure is the difference between the cash/coin/checks being deposited to the bank and the credit card transactions. This negative figure should be categorized to Credit Card Transactions #* ) bringing the deposit form to a 0.00 balance.

84 ITEMIZING CHECKS: Use the blue Itemize bar to record the names on the checks. The denominations should already be populated from tallying the quantity. **Note: checks will be tagged to the first category listed. To tag a check to multiple categories, all categories need to be listed on the deposit form prior to itemization. The pencil icon will allow you to select the category the check relates to. Caution: If the check is returned NSF and it is tagged to the first category, attention needs to be given when setting up the NSF item and charging the appropriate accounts. PRINT: Verify that the form is balanced and dates are correct. Print a current detailed receipt. Go to the Quick Print menu, select and print; deposit statement, one-page bank deposit, and adding machine tape. These are the tools to assist you in preparing your deposit slip. ADD TO LEDGER: Verify that all forms have printed correctly before adding to ledger. After you added to ledger, the program brings you directly to the ledger showing the recent transaction. INSERT A ROW ADD OPPOSING ENTRY: Find and highlight the negative Credit Card Transaction portion of the deposit. Click the insert a row icon located at the bottom of the screen. A row will open above the highlighted transaction. Create an opposing entry copying all the same data EXCEPT changing the type to Direct Deposit, adding CC to the deposit number, and the amount to a positive figure. Verify & SAVE. This transaction will represent the credit card transaction directly deposited to the bank and will be used at reconciliation.

85 Dispersing Cash or Gift Cards for Awards, Scholarships, or Goodwill. In the event you are unable to cut a check to a recipient and need to give cash or gift card, the following procedures should be followed: Cash: Cash should only be given to students in the event that checks are not practical. A check should be made payable to the Principal/Director/Sponsor for them to take to the bank and return with cash. The petty cash fund can be used if under $200. Documentation attached to the check disbursement or petty cash voucher should include the signatures of two (2) adults/staff witnessing the payout of cash along with the signature of the student. Dates, amounts and reason should also be recorded. Cash should not be given to staff/employees or outside parties for the purpose of awards or goodwill. Gift Cards: A check can be made payable to the Vendor/Store where gift cards are being purchased or to the person seeking reimbursement of the purchase. The store receipt(s) should be attached to the check disbursement showing details. Name of recipients, dates, amounts & reason should be attached and included with the records. Obtain signatures of two (2) adults/staff witnessing the dispensing of gift cards or the signature of the recipient.

86 For complete instructions refer to DOE Redbook and District Policy and Procedures ) Fundraiser or Event Proposal (5830 F1): Principals are to be aware in advance anytime there is student solicitation or collection of money so that efforts may be coordinated so as not to burden or be a nuisance to students, faculty, parents, or the community. Teacher/Sponsor must receive Principal's approval in advance anytime there is student solicitation and collection of money for any purpose. School-related organizations such as Booster Clubs or PTA/PTO's must also complete 5830 F1 and receive the Principal's approval. High School Athletic gate admissions (set by FHSAA) are exempt from this form. Legal Department must review & approval any contracts or sales agreements. Principals are responsible for signing the approved contracts. An additional approval is required by the Superintendent or Designee when students are off school property and the school is collecting & depositing monies collected directly into the school's bank account. The Superintendent's approval is NOT required when outside entities are collecting & depositing monies into their bank account and then remitting commission or a donation to the school (PTO/PTA, Booster Clubs, Restaurants, etc.). The Superintendent or Designee will return the completed form to the Principal or contact the Principal with any questions or concerns. For auditing purposes the completed, signed form should be filed with the school bookkeeper. 2) Final Fundraiser Financial Report (5830 F2): Whenever profit is intended or projected, Financial Report 5830 F2 is to be completed by the teacher/sponsor. Financial Report is NOT required when no profit is intended. For example, if selling items at cost or all monies collected are targeted for a specific charity. Financial Report does NOT have to be completed if collection of monies and deposits are made to an outside party's bank account (Boosters, PTO's, Restaurants, etc.). High School Athletic gate admissions (set by FHSAA) are exempt from this form Financial Report (5830 F2) is due to the Principal within thirty (30) days upon completion of fundraiser or event. The overall purpose of the form is to give fiscal accountability of monies collected and merchandise sold. Report to include amount of money projected and raised, when and where funds were deposited, cost of merchandise and disposition of unsold items, and any difference or problems from the planned activity and how they were resolved. Supporting documentation or spreadsheets can be attached supplying the required information (i.e., summaries, receipts or invoices from vendor sources). Bookkeeper can provide the teacher/sponsor reports of the school's ledger, such as a detailed category summary, to accompany & validate the financial report. For auditing purposes the completed, signed form should be filed with the school bookkeeper.

87 Monthly Reports to Submit to District Office: Reports (4) automatically generated at time of Finish Reconcile : 11M Bank Reconciliation Details w/original signature 11L Reconciliation Overview #13 Transfers Report w/original signature #15 Modified Transactions Listing w/original signature Report (1) generated through Reports Menu: #10 Trial Balance (Umbrella Date Range) See Page 2 Copy of Bank Statement

88 Report #10 Trial Balance (Umbrella Date Range) Click on Earliest Date Month-end-Reconciliation Change both (2) bullets

89 NSF Checks: The following steps outline procedures in SchoolCash/NSF Tracker Note: These procedures should be followed even if NSF check is being re-deposited. Attention needs to be given to the category it was tagged to when it was originally deposited & itemized. The NSF Tracker in SchoolCash will withdraw the funds from the category it was tagged to and in some cases that might not be correct and you might have to modify the category. To change the category: RESEARCH what category the check was tagged to. Checks YTD Deposited View Year to Date Entries Find, highlight, and MODIFY if necessary to the correct category Modification does not change the original deposit, only the Checks YTD listing. Step 1. Non-Sufficient Funds Module Add New NSF Charge, Deposited From: Click drop down Identify person, Highlight, and CONTINUE (Note: Category if not correct, refer to instructions above) Insert date and any bank or administration charge. SAVE-OK Two (2) warnings will appear. 1 st funds will be deducted on ledger 2 nd item will be logged in NSF Tracker Step 2. Payment: Two (2) Steps! 1) Non-Sufficient Funds Module Receive NSF Payment Highlight which item- CONTINUE Enter Payment Date and Payment Amount (note the category) AND 2) Deposits/Receipts Module Build a separate form-deposit payment back into the same category

90 PROCEDURES (for bookkeepers) FOR CHANGING BANKS Caution: Make sure you do not have any outstanding invoices pending including petty cash & change fund start-ups before proceeding as you will not be able to issue checks until new checks are ordered and received. 1. Refer to your last bank statement or on-line access from old Bank to determine ending bank balance. Determine what checks numbers & amounts are still outstanding. From this information follow the below calculations: Bank Balance: Less outstanding checks: Transfer Amount $ - (keep a list) $ 2. Issue a check payable to new Bank for the Transfer Amount. Code the check to the category Bank Account Transfers. Use the sub code, miscellaneous expense. Print statement, check, and add to ledger. DO NOT ISSUE ANY ADDITIONAL CHECKS FROM THIS old ACCOUNT! 3. Prepare a deposit/receipt. Deposit the check to category Bank Account Transfers using miscellaneous income as the sub code. Itemize the check, print a current detailed receipt, deposit statement, one page bank deposit, and adding machine tape. Add to Ledger. 4. Open the new account by taking the deposit/check to new Bank. Submit copies of new signature cards showing new account number to District Office Attn: Patricia Mitchell 5. Order new check supply starting with the next check number do not start with check numbers previously issued. Unused checks will be submitted to your school s record coordinator. 6. Officially close the old account in writing signed by principal & dual signature stating the account be officially closed after all outstanding checks have cleared. Watch for ending balance, as it may contain interest earnings or additional fees. 7. In SchoolCash you will NOT create a NEW account. The old & new account will be combined using both bank statements for the monthly Reconciliation. The category Bank Account Transfers should be at zero -0- showing the funds going out and coming in.

91 PROCEDURES FOR CLOSING & OPENING CHECKING ACCOUNTS: 1. Closing a CHECKING ACCOUNT should be done by issuing a check. Determine what checks are still outstanding and prepare to leave this total in the bank account. The check amount will be the bank balance less the outstanding check total. You will code the check to the category Bank Account Transfers # Notify the bank that after all checks have cleared and the account is at zero (0.00) the account should be closed. Follow Step 2 if check is used to open new account. 2. Opening a NEW CHECKING account should be done by depositing a check in the name of the Bank accepting the opening deposit. Establish a clear audit trail matching the check amount to the deposit receipt. You will enter a deposit using the category Bank Account Transfers # The new account must be a PUBLIC FUNDS ACCOUNT not to be confused with a Non-Profit Organization. Two (2) signatures are required. When ordering checks, start the numerical sequence from where you left off in the old account. Do not use the same check numbers already issued and recorded in SchoolCash. We suggest that the wording void after 6 months be printed on the checks and two (2) signature lines appear. Forward copies of completed signature cards showing account number and bank name to Internal Funds Mailbox #102, as soon as the account has been officially opened. 4. In SchoolCash you will NOT create a NEW account. The old & new account will be combined using both bank statements for the monthly Reconciliation. The category Bank Account Transfers should be at zero -0- showing the funds going out and coming in.

92 PROCEDURES FOR CLOSING OR TRANSFERING FUNDS FROM SAVINGS, MONEY MARKETS, OR CERTIFICATES OF DEPOSIT: 1. Closing or withdrawing funds from a MONEY MARKET, INVESTMENT SAVINGS, OR CERTIFICATES OF DEPOSIT will require a memo requesting the account be closed or a specific amount of withdrawal with TWO (2) SIGNATURES. The funds should be deposited or transferred into the checking account in its entirety. Establish a clear audit trail matching the amount withdrawn to the deposit receipt. Make copies of check & deposit ticket; attach to the transfer form. 2. Enter transaction by using OTHER MODULES TRANSFERS Transfer Money Between Two Commercial Bank Accounts Note: If additional interest is involved, ADDING A RECORD is necessary This Bank Transfer records the withdrawal/disbursement AND the deposit/receipt.

93 PROCEDURES FOR POSTING INVESTMENT INTEREST Posting Your Investment Interest via Bank Transfer: DO NOT SIGN OFF YOUR CHECKING RECONCILIATION UNTIL YOU ADD YOUR INVESTMENT INTEREST EARNINGS! 1. In the Checking bank account (not the Investment account) Reconciliation Module Add Record to record the interest earned on your Investment account. (Follow the 1st screen shot attached) Click FINISH LATER 2. Go into Other Modules Transfers- (Follow the 2nd screen shot attached) TRANSFER MONEY BETWEEN TWO COMMERCIAL BANK ACCOUNTS Transfer from Checking via Bank Transfer the interest earnings using the Investment Category to the Investment Bank Account. (Follow the 3 rd screen shot attached) Print Transfer Summary. 3. Go back to the checking reconciliation ledger. Find the bank transfer entry; clear (check off). Finish Reconcile - Print Reports Sign off. 4. Go to the Investment Bank Account Reconciliation Module. Entry for interest earned should be on the ledger for clearing. Finish Reconcile Print Reports Sign off.

94 INTEREST AMOUNT INTEREST AMOUNT

95 Receipt/Deposit Procedures: For every Monies Collected form received build a form & print a receipt in SchoolCash. Complete a deposit/receipt form for each monies collected form; take the time to review it for accuracy. Then go to the print bar and print a current detailed receipt. Printing a receipt is mandatory. A Receipt # will be computer generated which should be noted on the top left corner of the Monies Collected form. Once the receipt is printed you will not be able to make any changes to the form. Corrections are possible at District Level. The bottom portion of this 3-part form is your official receipt. You must print a current detailed receipt for every transaction. All checks received should be itemized. This will be an extra step; but will be valuable information in the data base as well as allowing use of the NSF Tracker module. Use last name, first when itemizing checks. Entering the check number is optional. You can build & accumulate several detailed receipt forms for one (1) deposit at the bank. Money must be deposited on or before the 5 th business day of the 1 st receipt. The quick print menu summarizes all documents needed for your bank deposit. include (but not limited to): The defaults should 1. Statement -lists all the forms/receipts, totals the deposit 2. One-Page bank deposit -summarizes all the cash/coin and checks for the deposit 3. Adding machine tape -lists the names & amounts of all the checks being deposited Paper Files Auditor Trail: The Principal does not have to sign anything related to deposits. Prepared by and Signature lines should be completed by bookkeeper/office manager even though you will see the principal s name on the signature line. Your paper files should include (but not limited to): 1) Report of Monies Collected form 2) Current detailed receipt office copy 3) Deposit statement 4 Receipt from the bank. These forms created when doing the quick print are documents to assist you in preparing the deposit slip. It is very helpful to keep these in the event there are any questions later. a) One Page Bank Deposit b) Adding machine tape (listing of checks being deposited) - can be attached to the deposit slip rather than hand writing the list of checks. Print two (2) of these one for the bank and one for your files. File numerically most current on top/front.

96 TRANSFERRING FUNDS FROM CHECKING: 1. Obtain signed memo/request from principal to transfer funds 2. Issue a check payable to the School Name for the transfer/deposit amount. 3. Code Check a. Category: Investment b. Sub Acct: Miscellaneous Expense 4. Print Check issue statement 5. Obtain signatures 6. Add to Ledger 7. Endorse back of check For deposit only to (savings) account # TO SAVINGS: 1. Prepare monies collected form 2. In Investment Acct, build Deposit form including itemizing check 3. Code Deposit a. Category: Investment b. Sub Acct: Miscellaneous Income 4. Print Current Detailed Receipt 5. Quick Print: a. deposit statement, b. one-page bank deposit, c. adding machine tape for bank 6. Add to Ledger 7. Deposit funds at bank 8. Attached deposit receipt to deposit statement

97 FROM SAVINGS TO CHECKING: TRANSFERRING FUNDS *** DO NOT ENTER A SEPARATE WITHDRAWAL OR DEPOSIT *** 1. Withdrawing funds from a INVESTMENT SAVINGS account will require a memo requesting the specific amount of withdrawal with TWO (2) SIGNATURES. The bank may transfer the funds from one account to the other if it is the same banking institution. Otherwise, the bank will issue a check payable to the School s Internal Funds. The funds should be transferred (if same bank) or deposited into the checking account in its entirety. Establish a clear audit trail matching the amount withdrawn to the deposit receipt. 2. In the INVESTMENT ACCOUNT: Enter transaction by using TRANSFERS ENTRIES Transfer Money Between Two Commercial Bank Accounts Print Bank Transfer Summary Attach memo requesting withdrawal, withdrawal verification & deposit receipt.