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L. UNCLAIMED PROPERTY EQUIPMENT TANGIBLE PROPERTY A. ACQUISITION OF EQUIPMENT EQUAL TO $1,000 OR MORE B. EQUIPMENT IS OBSOLETE OR OF NO VALUE INVENTORY A. INVENTORY OF TANGIBLE PROPERTY: CCPS BOARD POLICY B. PROPERTY ACQUISITION AND CONTROL DONATIONS A. PUBLIC GIFTS TO THE SCHOOLS: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