INTRODUCTION The programs, activities, and major operations of public schools are funded by different sources. Tax dollars, the main funding source, are allocated annually through the formal budget process and serve to fund the schools educational program and major operating expenses such as staff salaries and plant operations. Grants and federal program dollars are also administered through the budget process and provide funding for federal and district programs, and other educational initiatives. Another source, the schools Internal Fund, consists of revenue generated from student activities at the school site level. Revenue generated from Internal Fund activities is administered separately by each school and is not subject to the budget process. With the exception of the Fund 9 Program within the Internal Fund programs, whose revenue is an advance of school tax-dollar discretionary funds, Internal Fund revenue is unrelated to taxdollar monies. Refer to the diagram presented on page v for a visual overview of these two distinct funding sources. The State of Florida Department of Education has defined and established the responsibility for a school district s Internal Fund through Board of Education Rule Chapter 6A-1.085, Basic Principles of Internal Fund Accounting. As stipulated in this Rule, monies collected and expended within a school shall be used for financing the normal program of school activities not otherwise financed, for providing necessary and proper services and materials for school activities, and for other purposes consistent with the school program as established and approved by the School Board. Accordingly, since the district s School Board is responsible for the management of these funds, its duty shall be to adopt proper, generally recognized accounting policies and procedures to effectively administer the revenue generated from Internal Fund activities. In compliance with these provisions, School Board Rules 6Gx13-3D-1.021 and 6Gx13-5C- 1.061 and refer to the Manual of Internal Fund Accounting as containing the adopted policies and procedures for Internal Fund activities. The policies and procedures set forth in this manual have taken into account the existing State of Florida Statutes, State Board of Education Rules, and Miami-Dade County School Board Rules. Therefore, they are to be enforced by administrators and school principals when administering and monitoring the schools Internal Fund activities. Principals, treasurers, student activity sponsors and all staff involved with Internal Fund activities must become familiar with this manual since the guidelines established i
are the authority for Internal Fund matters and supersede all other publications governing the administration of student activity funds. To avoid duplication of instructions, the manual contains references to other published procedure manuals where appropriate. The reader is directed to refer to these publications as applicable and to contact the district s Internal Fund Accounting Section for clarification, guidance and assistance pertaining to Internal Fund accounting issues. Additionally, administrative directives, memorandums of instruction, or other types of written communications may be issued during the fiscal year in order to institute necessary policies or procedures that relate to the management of Internal Fund activities. These communications will be considered supplementary to this manual and must be adhered to. Consequently, this manual is intended to be updated on an annual basis to incorporate the new or revised policies and procedures that may have resulted from these communications or from changes to School Board Rules. ii
OVERVIEW OF THIS MANUAL A committee comprised of school treasurers and personnel from the Internal Fund Accounting Section has prepared this manual. A second committee consisting of school principals, treasurers, and personnel from the Office of the Controller, Office of Management and Compliance Audits and the Office of Athletics, Activities and Accreditation has reviewed the policies and procedures prescribed herein for the management of the schools Internal Fund activities. The revision process was carefully undertaken to evaluate the guidelines in effect, to change the official manual to a more user-friendly format, and to effectuate necessary policy changes to ensure greater internal control. This manual provides specific procedures for long-established but undocumented practices deemed to be in the best interest of Miami-Dade County Public Schools. The contents of this manual are separated into eight (8) major sections denoted by Roman Numerals I thru VIII, with each section containing different chapters addressing pertinent topics. This format was devised to facilitate referencing and the revision process. The Table of Contents depicts the outline of this manual for easy reference. Flow charts, summary tables, sample documents, and other illustrations have been incorporated throughout to provide examples, summarize information that can be disseminated to staff, and facilitate the understanding of policies and procedures. SECTION I INTRODUCTION: The introductory section of this manual provides a summary of general policy pertinent to Internal Fund activities based on School Board Rules and other authoritative sources. To provide a general overview of the different programs and functions used to account for Internal Fund activities, a Quick Reference Guide as well as a brief summary of the codification of Internal Fund accounting structures is included. Additionally, this section contains flowcharts of the different accounting cycles to illustrate and facilitate the understanding of the internal control structure adopted to ensure the accountability of monies generated through Internal Fund activities. iii
SECTION II GENERAL ACCOUNTING POLICIES & PROCEDURES: This section sets forth the general accounting policies and procedures applicable to the different accounting cycles, with references to the required documentation that must be completed and maintained for all accounting transactions processed by a school. SECTION III PROGRAM SPECIFIC POLICIES & PROCEDURES: This section sets forth the policies and procedures applicable to the types of transactions that would be recorded under the different programs available in the Internal Fund. Additionally, it provides a description of the programs, some of the functions available under each of them, and the applicable restrictions for the types of transactions processed. SECTION IV ACTIVITY SPECIFIC POLICIES & PROCEDURES: This section establishes policies and procedures specific to major activities conducted and accounted for under the different programs in the schools Internal Fund. SECTION V CLOSING PROCEDURES: This section establishes the policies and procedures for the monthly and year-end closing process, as well as general policy regarding the retention of Internal Fund records. SECTIONS VI - FORMS, VII GLOSSARY OF TERMS, and VIII - INDEX: These sections are mainly for reference purposes. NOTE: Due to the nature of Internal Fund activities, issues may arise that are not addressed in this manual. Additionally, if contradictory information is noted between this manual and other documents issued by other district offices, generally the information in this manual supersedes other manuals, specifically when it relates to financial accounting policy and procedures. Nevertheless, for clarification under either of these circumstances, questions should be directed to the Internal Fund Accounting Section within the Office of the Controller for Miami-Dade County Public Schools. iv
v
Page 1-1 Chapter 1 General Policies I. POLICY SUMMARY School Board Rules are the adopted policies of the School Board to manage and control the District s operations. The policy for Internal Fund activities is derived mainly from School Board Rules that may be amended from time to time. Consequently, when inconsistencies arise, School Board Rules supersede policy in this manual. For purposes of identifying the School Board rules that directly relate to the administration of Internal Fund activities, references to specific Rules are included throughout this manual. A listing of the more general School Board Rules, along with a brief summary, is provided herein below in chronological order: Board Rule Number 6Gx13-1C-1.05 Policy Summary Acceptance of free materials is discussed. 6Gx13-1C-1.051 6Gx13-1C-1.09 6Gx13-1C-1.10 6Gx13-1C-1.15 6Gx13-1D-1.011 6Gx13-1D-1.05 6Gx13-1D-1.07 The distribution of materials containing advertising from outside of school sources is not permitted without the approval of the Office of the Superintendent of Schools. The employee United Way drive is an authorized fundraiser. The Superintendent may authorize participation with Scholarship Saturdays. Employees should not sell merchandise or services for personal gain. Solicitation in the name of the school without the principal and Region Center Superintendent approval is not permitted. Use of "tag days" is prohibited. Sale of magazines is permitted in high schools with compliance to Board Rule 6Gx13-5C-1.07. The student United Way drive is an authorized fundraiser. The purpose of this drive is detailed. Student third party fundraising is addressed and its limitations. Exceptions must be transmitted to the Superintendent for School Board review. Guidelines for the use of school facilities for commercial film production are detailed. The terms government and school-allied organizations are defined. School-allied organizations must distinguish their activities from school activities. Procedures for building use are defined. No entertainment for which admission is charged may be held in a school during school hours. Guidelines for school/allied organization sponsored entertainment are detailed. All forms of gambling and games of chance are prohibited.
Page 1-2 Chapter 1 General Policies 6Gx13-1F-1.01 6Gx13-3B-1.01 6Gx13-3B-1.04 6Gx13-3B-1.06 6Gx13-3B-1.061 6Gx13-3B-1.081 6Gx13-3B-1.09 6Gx13-3B-1.091 6Gx13-3C-1.01 6Gx13-3C-1.111 6Gx13-3D-1.021 6Gx13-3D-1.03 6Gx13-3D-1.07 6Gx13-3C-1.18 Schools should affiliate in recognized associations because of the various benefits such affiliations provide. All funds available for investment are to be invested where they may earn the maximum possible yield. School fees must be approved annually by the Region Center. Parents must be notified. Non-essential school supplies and novelties can be sold by schools on a 20% mark-up profit basis. Uniforms and physical education equipment must be sold at cost. The sale of snacks and beverages have restrictions during the school day. It is unlawful for any person to sell, serve, vend or otherwise dispose of goods within 500 feet of any Miami-Dade County Public School property unless done so within a secure vending area. Obsolete or worn out items of personal property may only be disposed of by proper review by authorized persons. Schools may not lend, rent, or dispose of equipment without conforming to all regulations. Employees should be guided by the outlined principles and standards adopted by the National Association of Purchasing Management for the acquisition of equipment, supplies, and materials. The district bidding process is discussed. Schools making Internal Fund purchases will adhere to policies as outlined in the Manual of Internal Fund Accounting for Elementary and Secondary Schools. The specific procedures to be followed for internal funds are given in the Manual of Internal Accounting. Petty cash funds are authorized for the purpose of making small expenditures for the operation of schools and administrative units. The amount shall not exceed $300.00. Procedures for the sale of student photographs and the acquisition of a photographer are detailed. Cost limitations relating to expenditures for recognition awards and incentives that may be purchased from school/district funds for students, employees, school volunteers, etc. are established.
Page 1-3 Chapter 1 General Policies 6Gx13-3E-1.04 6Gx13-4C-1.07 6Gx13-5B-1.08 6Gx13-5C-1.06 6Gx13-5C-1.07 6Gx13-6A-1.22 6Gx13-6A-1.25 6Gx13-6C-1.041 The School Board is authorized to collect for damages from the parents of students under 18 who maliciously or willfully destroy school property. The amount of recovery is limited to $2,500. The procedures for collection are outlined. The specific procedures to be followed for travel expenses are given in the Travel Policies and Procedures Manual. Photograph service for senior high school annuals will be contracted on the basis of proper bids. The administration has the responsibility for making all necessary rules for safeguarding, accounting, and auditing of monies received associated with internal fund activities. Solicitations in homes and other fundraising policies are discussed. Field trips for students are permitted which have value in meeting educational objectives, are directly related to the curriculum, or are necessary to the fulfillment of obligations to the interscholastic athletic and activity programs. Field trip guidelines are discussed. Schools may determine student fees within the limitations set in this board rule. Area Vocational-Technical Centers are explained. AVTCs will follow the Manual of Internal Accounting when collecting and expending internal funds.
Page 2-1 Chapter 2 Codification of Accounting Transactions I. GENERAL OVERVIEW OF INTERNAL FUND ACCOUNTING STRUCTURES Internal Fund account structures have been established in accordance with the guidelines set forth in the Financial and Program Cost Accounting and Reporting for Florida Schools ( Red Book ), to maintain a uniform codification of financial transactions for accounting and reporting purposes. The Internal Fund Chart of Accounts is an all inclusive listing of available account codes for classifying and recording Internal Fund financial transactions and is maintained by the district s Internal Fund Accounting Section. Schools must submit written requests, signed by the principal, to this department to open new account structures, as needed. To activate existing account structures, verbal requests are acceptable. An Internal Fund accounting structure consists of the following elements: 1. Fund (0800) 2. Location (school site) 3. Program 4. Function 5. Object Fund 800 is the fund code for the schools Internal Fund. The following programs, with the respective program numbers (codes), are part of the Internal Fund: Program # Athletic Program 5001 Music Program 5002 Classes and Clubs Program 5003 Trust Program 5004 Property Fund Program 5005 School Store Program 5006 Instructional Fees Program 5007 General Program 5008 Instructional Materials and Educational Support (Fund 9) Program 5009 Adult Education Program 5010
Page 2-2 Chapter 2 Codification of Accounting Transactions Program # Community Schools Program 5011 Agriculture Program 5012 Food Service Program 5013 Production/Service Programs 5014 Dental Program 5015 Within the Internal Fund program classifications, function codes are used to classify the activities performed to accomplish the objectives of the school; thereby, function codes refer to the objective or purpose of a revenue or expenditure. A myriad of function numbers (codes) for each program classification are available in the Internal Fund Chart of Accounts to be used accordingly for recording financial transactions. Refer to the Quick Reference Table provided in, Chapter 3 for sample available functions for each program. In addition to the function assigned, object codes are used to classify revenue received and goods or services purchased. The following object names and corresponding codes are applicable for Internal Fund transactions: Revenue Objects Expenditure Objects Object # Object # Sales 4493 Out of County Travel 5331 Dues and Fees 4429 Field Trips 5332 Restricted Revenue 4445 Other Purchased Serv. 5390 Other (Interest) 4490 Supplies 5510 Items for Re-sale 5595 Equipment 5640 Miscellaneous 5790 All financial transactions must be recorded using the proper structures in accordance with Internal Fund policy set forth in this manual. All schools and centers may obtain an all-inclusive listing of the Internal Fund Chart of Accounts from the district s Internal Fund Accounting Section accordingly. Refer to the following diagrams for a pictorial overview of Internal Fund accounting programs and functions.
Page 2-3 Chapter 2 Codification of Accounting Transactions
Page 2-4 Chapter 2 Codification of Accounting Transactions
Page 3-1 Chapter 3 Quick Reference Table for Programs and Functions
Page 3-2 Chapter 3 Quick Reference Table for Programs and Functions
Page 3-3 Chapter 3 Quick Reference Table for Programs and Functions
Page 3-4 Chapter 3 Quick Reference Table for Programs and Functions
Date Issued: March 17, 2004 Page 4-3 Chapter 4 Accounting Cycle Flowcharts
Date Issued: March 17, 2004 Page 4-3 Chapter 4 Accounting Cycle Flowcharts
Date Issued: March 17, 2004 Page 4-3 Chapter 4 Accounting Cycle Flowcharts