Chapter 1 Internal Accounts Overview

Transcription

1 Chapter 1 Internal Accounts Overview The District is required to follow the guidelines established by Rule 6A-1.001, Financial and Program Cost Accounting and Reporting for Florida Schools, Chapter 8 School Internal Funds. Collecting and expending of school internal account funds shall be in accordance with the Florida Constitution, Florida Statutes, State Board of Education rules, and school board rules. Sound business practices should be observed in all transactions. General Principles 1. The school board shall be responsible for administration and control of internal funds of the district school system, and in connection therewith shall: a. Adopt written rules governing the receipt and disbursement of all internal funds and for the accounting for property pursuant to Florida Statutes. b. Provide for an annual audit of internal funds in accordance with Rule 6A-1.087, F.A.C. 2. The financial transactions of school-based organizations are accounted for in the school internal funds. All funds collected by students or school staff during normal school hours and all funds collected at extracurricular events shall be deposited in internal funds. These transactions must be recorded in School Cash Accounting unless accounted for in the district-level PeopleSoft accounting system. 3. All organizations of the school, or operating in the name of the school, which maintain monies collected from the public, shall be accountable to the board for receipt and expenditure of those funds. PTA, PTO, Booster Clubs and School Foundations can organize as internal or external organizations with the approval of the principal and Chief Academic Officer. a. Internal organizations use the District tax id number and are accounted for in the school internal funds and are subject to district policy and procedures. b. External organizations are not accounted for in the school internal funds and are instead maintained by the external organization and not subject to district policy and procedures. i. Funds that were collected in school internal accounts are property of the school and may not be redistributed to any outside PTA, PTO, Booster Club, or School Foundation. ii. All new external organizations must be approved by the Area Superintendent and Chief Academic Officer prior to conducting any business in affiliation with a district school. iii. Each school shall post a list of affiliated external organizations on their school website to notify parents that those external entities are not subject to school district policies and procedures. iv. Outside organizations must use their own tax id number, be responsible for their own banking, and execute a lease agreement if they use the facility for extra-curricular events held on the school campus. Principals have the authority to waive lease fees at their discretion. v. The school assumes no financial liability or obligation for debts incurred by any external organization. vi. If outside organizations hire vendors as part of their event, those vendors must also provide insurance in accordance with the guidelines set by Risk Management. If prepared food is served, the vendor must provide a sanitation certificate in addition to providing the district s required liability insurance. Internal Accounts Manual 1 Chapter 1

2 vii. viii. ix. School district staff members are not permitted to handle funds on behalf of an outside organization during their normal working hours. School administrative staff may not serve as officers or receive compensation from outside school organizations for organizations affiliated with their home school. Outside organizations must provide an annual summary of their financial activities to the school by September 30th for the fiscal year ended the preceding June 30 th, and the school must promptly forward a copy of that financial statement to the district s Accounting Services Department. 4. Funds collected by and used for the benefit of faculty and staff may be exempt from the preceding requirements at the option of the school board. Faculty and staff funding sources include vending machine profits, school picture profits, facility leasing, and donations clearly earmarked for the benefit of faculty or staff. Refer to discussion on Administrative Courtesy Guidelines in Chapter 27, Chart of Accounts. 5. School internal account funds shall be used to benefit activities authorized by the district school board. 6. Student participation in fundraising activities shall not be in conflict with the program as administered by the school board and the objective of fundraising activities by the school, by any group within the school, or in the name of the school shall not conflict with programs as administered by the school board. 7. Funds collected shall be expended to benefit those students in school unless those funds are being collected for a specific documented purpose. Any internal account funds designated for general purposes shall be used to benefit the student body. 8. Vocational production revenue shall benefit the students or program that generated the funds or the student body. These funds may be used for purchases to support vocational instructional programs or they may be used to benefit the student body. 9. Internal funds shall not be used to cash checks to accommodate individuals, make any kind of loans or extend credit to school district employees, students or other persons. No purchases shall be made through internal funds by school district employees, students or others that benefit them personally from the school s purchasing power, credit capacity or tax exempt status. 10. School district employees may not be paid from internal funds. With the exception of Athletic officials certified by the Florida High School Athletics Association (FHSAA) who are refereeing at official school athletic contests, all employee compensation must be paid through the district s PeopleSoft accounting system. The FHSAA requires athletic officials to be paid by the host school from school internal accounts, so district employees who work in that capacity may be paid from internal funds in accordance with FHSAA regulations and receive a 1099 form for their officiating wages. This is the only payroll exception for district employees all other compensation for district employees must be processed by the Payroll Department and included as taxable wages on the employee s W-2 form. Chart of Accounts The Florida Department of Education has outlined seven activity categories for internal accounts and requires all business transactions for the school to be recorded in those accounts. The financial transactions athletic Internal Accounts Manual 2 Chapter 1

3 programs, music programs, curricular classes and departments, extracurricular clubs, and any other activities sponsored by the school shall be accounted for in internal accounts and recorded in the appropriate category. The sponsor of each group shall be responsible for providing adequate financial documents and records to the principal and is responsible for retaining them until the annual audit is complete. These records may include field trip forms and fundraising applications, copies of the Monies Collected Reports, and other pertinent documentation requested by the principal. The seven state-mandated activity categories for school internal accounts are: 1. Athletics All revenues and expenditures associated with athletic business transacted at the school level shall be recorded in accounts in this classification. a. Proceeds from activities of varsity, junior varsity, or intramural sports, donations to these groups, and their expenses for supplies and trips shall be recorded in this classification. b. Athletics accounts shall be self-supporting and balances in the individual sports accounts may be transferred to General Athletics at the end of the fiscal year. 2. Music All revenues and expenditures associated with school music organizations shall be recorded in accounts in this classification. a. Proceeds from activities of musical organizations, donations to these groups, and their expenses for supplies and trips shall be recorded in this classification. b. Collections from students for rental or maintenance of uniforms or instruments shall be recorded in separate accounts in this classification, or in trust if restricted as to use. c. Music accounts shall be self-supporting and balances in the individual music accounts may be transferred to General Music at the end of the fiscal year. 3. Classes All revenues and expenditures associated with curricular classes shall be recorded in this account classification. Approval for the existence of all class activities is the responsibility of the principal. a. Class monies shall be expended for the benefit of the class for purposes designated by the class members that participated in the generation of the revenue. All financial transactions of any class shall be administered through the school internal accounts. b. Any residual balance in the account of a high school class that has graduated shall be transferred to General Activities at the discretion of the principal. c. All other Class accounts are considered for the general use of the teacher to cover costs associated with needs of the students enrolled in the class during the current school year, and any residual balances at the end of the year may be transferred to the General Activities account at the close of the fiscal year at the principal s discretion. 4. Clubs All revenues and expenditures associated with school-sponsored and approved extracurricular student clubs shall be recorded in accounts in this classification. Approval for the existence of all club activities is the responsibility of the principal. a. Club monies shall be expended for the benefit of the club for purposes designated by the club members that participated in the generation of the revenue. All financial transactions of any club shall be administered through the school internal accounts. Internal Accounts Manual 3 Chapter 1

4 5. Departments All revenues and expenditures associated with a curricular department shall be recorded in this account classification. Curricular departments (Science, Math), elective classes (Yearbook, Media) and career academies are included in this classification. Approval for the existence of all department activities is the responsibility of the principal. a. Department monies shall be expended for the benefit of the department for purposes designated by the students and staff that participated in the generation of the revenue. All financial transactions of any department shall be administered through the school internal accounts. b. Department accounts are considered for the general use of the teachers to cover costs associated with needs of the students enrolled in the department during the current school year, and any residual balances at the end of the year may be transferred to the General Activities account at the close of the fiscal year at the principal s discretion. 6. Trusts Monies that are collected for a specific purpose are deposited into trust accounts. Funds in restricted trust accounts must be spent for the express purpose designated by the donor or as specified by the school district. a. When the purpose of the trust fund has been accomplished or becomes inoperative, unused trust funds shall be returned to the person(s) from whom collected, if practible. Donors may designate an alternative purpose. Funds that cannot be returned shall be used to benefit general student activities. b. If a student organization has a multi-year project, those funds can be set aside in a trust account. c. At no time shall a trust account have a deficit. Examples of trust accounts include internally operated PTA, PTO, scholarship funds, administrative courtesy and faculty fund. d. Any deficits in trust accounts shall be reported to the Area Superintendent immediately for follow-up. 7. General All revenues and expenditures associated with the general welfare of the student body or that cannot be specifically identified to any particular student group are accounted for in this classification. Examples of revenues that may be recorded in the General classification include school wide fundraisers (magazine sales, candy sales), ID badges, locker fees, student parking decals, agenda planners, transcript fees, blood drive revenues, and other activities that are not associated with a specific class, club, department, sport, or musical program. General Accounting Controls An adequate system of internal controls shall be maintained to safeguard the assets of the school internal funds and assure that all funds are collected and disbursed in accordance with the Florida Constitution, Florida Statutes, State Board of Education Rules, and school board rules. Sound business practices should be observed in all transactions. 1. Principals must establish a system of accounting that incorporates the internal control concept known as segregation of duties. This precludes one individual from complete responsibility for cash receipts, cash disbursements, and bank reconciliations. Internal Accounts Manual 4 Chapter 1

5 2. Since school treasurers are responsible for issuing checks, preparing and recording deposits, and reconciling bank statements, they should not open the mail, receipt money from parents or students, or originate disbursement requests. Mail should be opened by another staff member, and any checks received by mail should be receipted by them. Likewise, school treasurers should not issue receipts to parents or students or complete monies collected reports, nor should they sell tickets at school events or prepare ticket reports. 3. Account sponsors are responsible for completing the paperwork that supports deposits, and should retain the yellow copy of the Monies Collected Report (PBSD 0180) as a temporary receipt to be verified against the official receipt issued by the school treasurer after funds are deposited and recorded in internal accounts. The yellow copies of the Monies Collected Reports and the official receipts must be retained by the sponsor and submitted to the school secretary at the end of the school year. Account sponsors are responsible for completing Check Requisitions (PBSD 0181) to pay invoices and request disbursements from internal funds. Financial Reporting Internal funds must be accounted for on the same fiscal year basis as all other school district funds. This means the fiscal year begins on July 1 st and ends on June 30 th of each year. At the end of the fiscal year, an annual report will be provided to the district office by each school, including a list of all accounts payable and accounts receivable, for inclusion with the district s financial statements. All school internal funds are subject to an annual audit. Those audits are currently being performed by the school district s Audit Department. 1. Ongoing Monitoring Process for schools: a. Principals are expected to monitor account balances closely throughout the year and work with account sponsors to alleviate any deficits prior to the end of the year. While individual activity accounts may incur temporary deficits throughout the school year, at no time shall any school be permitted to incur an overall operating deficit. b. In lieu of submitting organizational budgets, activity sponsors shall complete fundraising applications, field trip request forms, and purchase orders as required by district guidelines. 2. Monthly financial reporting process for schools: a. Monthly reporting package must be approved by the principal and submitted to the district s Accounting Department by the 20 th day of the following month. Any reports that are not received by the last day of the month will be reported to the Area Superintendent for follow-up. 3. Monthly financial reporting process for District Accounting Department: a. Report any deficits in trust accounts to the Area Superintendent for follow-up. Administrative Courtesy, Faculty Fund and Facility Leasing are trust accounts, and may not be in a deficit at any point during the year. b. Report school based accounts with deficit in excess of $2,000 (elementary), $5,000 (middle) or $10,000 (high) to the Principal and Area Superintendent. c. Report schools that do not submit timely monthly financial reports to the Area Superintendent. Internal Accounts Manual 5 Chapter 1

6 4. Year-end financial reporting process for schools: a. Close decimalized accounts, then close inactive/dormant accounts to General Activities b. An account is considered inactive/dormant if it has had no financial activity for a full school year. Balances in dormant accounts may be transferred to General Activities at the end of the school year to be used for the general benefit of the student body. c. Cover deficits in Athletics and Music from other accounts within the classification. The Athletics and Music programs should be self-supporting. d. Cover any remaining deficit balances in the Athletic, Music, Club, Department, Class and General account classifications with General Activities, Administrative Courtesy, or Facility Rentals. For the detailed closeout process, refer to Chapter 30, Year End Closing. e. Once a deficit is covered through the year-end transfer process, that transfer may not be reversed and the deficit may not be reinstated in the following school year. 5. Year-end financial reporting process for District Accounting Department: a. Chief Operating Officer will report any remaining deficit account balances after the closeout process to Area Superintendent and Chief Academic Officer. b. Chief Operating Officer will report school Account Payable balances to the Area Superintendent and Chief Academic Officer. School Banking Bank statements must be reconciled as soon as they are received and shall be reviewed by the principal each month. Schools are permitted to have only one checking account, but they are permitted to establish other accounts (savings accounts, certificates of deposit) or invest excess funds with the district s Treasury Department to earn higher rates of interest. 1. All school bank accounts must be approved in advance by the Treasury Department and must use banks that are designated as Qualified Public Depositories by the State of Florida. All banking changes (signatures, banking affiliations, new accounts, CD rollovers, account closures, etc.) must be approved by the Treasury Department. 2. Under no circumstances shall checks be pre-signed. School checks must be signed by two authorized persons. The primary signer must be the Principal, but in the principal s absence, the Area Superintendent may sign on behalf of the principal. The second signature must be the School Treasurer, the treasurer s alternate, or the Area Superintendent (only if the principal was the primary signer). Cash Receipts District-approved forms must be used as the means of recording cash received and as the basis for recording internal accounts revenues. All money collected by the school must be substantiated by pre-numbered receipts, consecutively numbered classroom receipt books, reports of monies collected, pre-numbered tickets, reports of tickets issued and sold, or other auditable records. Internal Accounts Manual 6 Chapter 1

7 1. Insofar as practicable, all money should be collected in the school office. Collections outside the school office shall be turned into the school office the same business day. For events occurring outside the normal school day, sponsors have the option to finalize the paperwork and complete the deposit the following business day. 2. All money collected must be deposited intact as frequently as feasible and as dictated by sound business practices, but in any event, funds collected must be deposited within five working days after they are received. 3. All deposits must equal the total amount of money taken in and recorded on the receipts for the period covered by the deposit. Funds collected from students, event patrons, etc. must be deposited intact. Deposit slips shall be made in duplicate and all checks received shall be deposited with a restrictive endorsement of For Deposit Only and specifying the account title and number. 4. Receipts issued to parents must be pre-numbered and all manually-issued classroom receipts or SACC receipts must be accounted for. 5. Admission fees to school events including parking, must be supported by the issuance of pre-numbered tickets whenever collections are estimated to exceed $500 (at elementary schools) or $1,000 (at middle and high schools). The detailed procedure for revenue collections for athletic events is included in Chapter X. 6. All pre-numbered receipts, tickets, and checks on the school campus must be inventoried on a regular basis as prescribed by the district. Pre-numbered document inventory forms must be available for review as part of the annual internal accounts audit. Pre-numbered Tickets shall be ordered from outside vendors and shall be accompanied by a statement or invoice showing the numbers received. 6. Schools are equipped with a drop safe to secure funds for deposit. If not deposited on the day of collection, it is the sponsor s responsibility to secure the funds for deposit by the next business day. a. When money is dropped in the school safe for deposit in internal accounts, it must be logged on the Drop Safe Log (PBSD 2407) by the sponsor. b. For events occurring outside normal school hours, sponsors may enter the deposit on the Drop Safe Log with an amount of TBD and a notation to return the deposit to them. The following business day they shall retrieve the deposit to finalize the amount and complete the paperwork, then log the completed deposit again on the Drop Safe Log. c. When funds are removed from the safe by the Treasurer, another member of the school staff must be present to verify that all entries on the Drop Safe Log are checked off and confirm that all internal fund collections submitted for deposit were emptied from the drop safe. d. After the funds are verified and recorded in the accounting system, the school treasurer will forward the official receipts to an independent staff member who will enter the receipt numbers and record any deposit discrepancies on the Drop Safe Log. The principal should review the Drop Safe Logs periodically to review the discrepancies. e. Unused Drop Safe Logs must be inventoried on a monthly basis. All completed log forms shall be filed sequentially and retained for five years. Internal Accounts Manual 7 Chapter 1

8 7. Safe combinations are to be safeguarded in accordance with district requirements. The Principal is the only person on campus authorized to have access to the complete safe combination. The principal may designate two or more staff members to share the combination so the safe can be accessed in the principal s absence by those two staff members. 8. In addition to providing safes, the district also provides armored car service for the schools. All schools are scheduled for pickup at least two days per week, and the armored car courier will service deposits for internal funds and the school cafeteria on each scheduled visit. The district recommendation is for schools to prepare regular deposits at least twice per week, which the School Treasurer should finalize the day prior to the school s scheduled pickup. Following this schedule will allow schools to adhere to the DOE rule requiring schools to deposit all funds within five working days of collection. Purchasing Guidelines All purchases from internal accounts are subject to the principal or principal designee s advance approval. 1. Purchasing Cards may be used for commodity purchases of less than $1,000. The school s P-Card Site Coordinator is responsible for reconciling the P-card transactions and assigning the appropriate coding to all internal accounts P-card transactions. 2. Commodity purchases that are not made with P-cards require the issuance of a written purchase order. This may be in the form of an Internal Accounts Purchase Order (PBSD 1882) or a PeopleSoft requisition. Commodity purchases in excess of $10,000 must be submitted to the Purchasing Department for additional approval. 3. Employees may be reimbursed for out-of-pocket purchases by completing a Check Requisition (PBSD 0181) and providing an itemized receipt. 3. Principals may sign the Contract for Services (PBSD 1420) up to $2,500 if the vendor has not exceeded $10,000 worth of business in a single fiscal year. If the Contract for Services exceeds $2,500 or the vendor has exceeded the $10,000 threshold, the contract must be routed to the Purchasing Department for approval, additional signatures, and reporting to the board. 4. Legal Services is available to review contracts that are prepared on vendor s form. 5. Schools may not enter into promissory notes, installment contracts, or negotiate lease purchase agreements in the name of a school or any school organization without first obtaining the approval of the Purchasing Department. 6. Neither the school nor the school board shall be liable for any purchase made in the name of the school without express written approval. Internal Accounts Manual 8 Chapter 1

9 Cash Disbursements Approved pre-numbered checks shall be used as the means for disbursing funds and as the basis for accounting entries. 1. All check requisitions must be fully documented with vendor invoices, itemized receipts, purchase orders, contracts, etc. to clearly show what was purchased, why it was purchased, and that the purchase adhered to the District s established procurement policies and procedures. 2. All pre-numbered checks on the school campus must be inventoried on a monthly basis as prescribed by the district. Pre-numbered document inventory forms must be available for review as part of the annual internal accounts audit. Capital Assets Assets purchased through internal funds or donated by external organizations must be tagged for property control purposes and added to the school s property inventory for audit purposes. Assets are defined as furniture, fixtures, or equipment with a unit price of $1,000 or more and a useful life of more than one year. Regardless of purchase price, all computers are tagged and inventoried for property control purposes. 1. Complete the Receipt of New Tangible Property form (PBSD 1677) to document and report any assets purchased from internal accounts. 2. Send the form to Accounting/Capital Assets and the items will be added to the school s property records inventory. Any facility or grounds modifications funded through internal accounts or by donations from external organizations or business partners must be approved and financed in accordance with Policy 7.26, Facilities or Grounds Modifications Funded by Internal Accounts or Donations. Field Trip Guidelines Field trips are governed by policy 2.40, Field Trips, and 2.404, Use of School Buses for Field Trips. The complete procedures for field trips are included in Chapter Prior to the trip, the activity sponsor must complete a Field Trip/Activity Planning Report and Approval Request (PBSD 1894). This form outlines the financial, supervision, and logistical plans for the trip. Field trips must be approved by the following district officials based on the trip destination: a. Principal approval is required for all field trips. b. Area Superintendent approval is required for Out-of-County trips within the State of Florida. c. The Chief Academic Officer must approve Out-of-State trips within the continental United States. d. Trips outside the continental U.S. must be presented to the School Board for approval. Internal Accounts Manual 9 Chapter 1

10 2. For out-of state or overseas field trips, sponsors must complete a Field Trip/Activity Roster (PBSD 2149) listing all participants, the amount they paid, their relationship to other attendees, and the financial status of the field trip approximately two weeks prior to departure and route to their principal for approval. Area Superintendent approval is also required for any out-of-state or overseas travel. If the Field Trip/Activity Roster (PBSD 2149) is submitted for approval prior to being fully funded, a plan for covering the shortfall prior to year-end must also be attached to the form. 3. Any field trip payment waivers granted to students for hardship reasons must be documented by completing a Student Field Trip Payment Waiver, and shall be approved by the principal. Only currently enrolled students are eligible for fee waivers. Any non-student participants other than official chaperones are required to pay the full per student cost and their fee cannot be waived. 4. Official approved chaperones are considered a cost of the trip and their travel costs may be added to the per student cost. Any complimentary tickets received shall be applied to reduce the per student cost. However, principals retain discretion to require chaperones to pay the full cost of the trip rather than adding it to the cost of the trip. Fundraising Guidelines Fundraising is governed by Policy 2.16, Fund-Raising Activities Relating to Schools. The complete procedures for fundraising are included in Chapter Activity sponsors must obtain advance approval from the principal for all school fundraising. Sponsors are required to complete the Estimated column of the Fundraising Application/Recap (PBSD 0153) prior to the event and after the event they must complete the Actual column as well as a Sales Item Inventory Report (PBSD 0182). 2. Any revenue sharing or commission arrangements with business partners that occur off-campus where the school exercises no direct control over the participation or collections are essentially contributions to the school, and are not subject to the fundraising guidelines. Internal Accounts Purchases Billed Through PeopleSoft Charges generated by district departments (Transportation, Printing Services, Supply Warehouse), labor charges associated with student or rental activities, and items purchased using the PeopleSoft Marketplace or districtissued P-cards are invoiced back to schools through the internal accounts billing system in PeopleSoft. 1. Any PeopleSoft transactions coded to fund 1801 will be selected for billing, so schools must exercise care when selecting account strips and payroll combo codes for student activities and facility leasing. 2. School treasurers and principals can view a statement of the balance due by clicking on the Internal Accounts Billing Statement link in the SDPBC Top Reports section of the PeopleSoft Financials home page. Internal Accounts Manual 10 Chapter 1

11 School treasurers can use the PeopleSoft system to generate detailed invoices showing the items purchased, the bus trip destinations, the names and pay dates for employee labor charges, and other pertinent information. 3. Schools are required to remit payment by issuing a check from internal accounts in 30 days in accordance with the process outlined in Policy 6.071, Collection of Internal Accounts Charges. Any unpaid balances payable to the District must be included on the school s year-end list of Accounts Payable and will be reported to the Area Superintendents and Chief Academic Officer. Internal Accounting Software In 2008 the school district implemented the School Cash Accounting software package produced by the Kev Group which includes an integrated component to facilitate credit card payments by parents. 1. The system is a secure internet hosted solution, so no software resides on district servers and no maintenance is required by the district s Information Technology division. 2. Security maintenance of user ids and passwords is administered by the district s Accounting staff when there is a school treasurer personnel change, and new school treasurer training is a joint effort between Kev Group and staff in the district s Accounting Department. 3. The system is fully networked and users with district-level access (such as Accounting Department staff and Audit Department staff) have the ability to review transactions stored in history or to review online, real time transactions and generate reports. Credit Card Payments for Student Activities In 2009 the school district implemented a program that allows parents to use credit or debit cards to pay student activities fees. Parents may access the website through a link on their student s Edline page and set up an account for their family, even if the children attend different schools. They can use Visa and MasterCard credit cards or a debit card with a Visa or MasterCard shield to pay for student activities and school lunches for each child. 1. The school treasurer establishes the activity fees in SchoolCash.net by entering the name of the fee, a description of the charges, the amount, the date the fee expires, and allocates the payment to one or more internal accounts. They can assign the fee to one student, to the entire student population, or they can restrict fee assignments to specific grade levels, course numbers, or course sections. They can also use the group feature to set up extracurricular groups (for example, SACC students) and restrict fee assignments to the students in that particular group. 2. When parents pay the fee, funds are processed through the merchant card processing system and the school receives a bank deposit and a corresponding direct deposit entry in School Cash Online. School treasurers can run several different reports to advise sponsors of payment activity. Payments made in this Internal Accounts Manual 11 Chapter 1

12 manner do not require the sponsor to collect funds or process paperwork, and the school treasurer does not have to count or deposit any funds. 3. In 2011 the online payment option was extended to district employees, giving teachers and other district staff the opportunity to use credit or debit cards for meal payments and other fees established by the school treasurer. Internal Accounts Manual 12 Chapter 1