Table of Contents

Introduction1

General Information2

Section I: Cash Receipts4

Section II: Deposits7

Section III: Cash Disbursements8

Section IV: Returned Checks11

Section V: Bank Reconciliations & Monthly Reports12

Section VI: Annual Reporting14

Section VII: Donations and Grants15

Section VIII: Fundraising16

Section IX: Sales Tax18

Section X: Petty Cash21

Section XI: Purchasing22

Section XII: Use of Funds Guidance23

  1. Campus Activity Funds23
  2. Student Activity Funds24
  3. Faculty Funds25

Section XIII: Acknowledgement Form26

Appendix: Forms 27

1

Introduction

This manual is designed to provide a set of standardized accounting guidelines and procedures for the administration of the Birdville Independent School District Activity Funds.

Appropriate accounting of activity funds and accuracy of financial information depends on proper recording of individual transactions. The accounting function for the Activity Funds is delegated to each campus. Principals are ultimately responsible for activity fund monies and transactions whilefollowing the guidelines and procedures prescribed in this manual.

This handbook is provided to ensure that generally accepted accounting principles are followed and that sound internal controls are in place to provide protection of student and campus activity funds. The procedures and guidelines provide both administrative and accounting controls to safeguard assets and ensure reliability of the financial records. Adhering to these guidelines and procedures will help to prevent the misappropriation or abuse of funds as well as protect individuals who work with activity funds.

This manual supersedes all prior publications regulating the administration of Activity Funds. This handbook will be continually updated and improved with more detailed guidelines and information. Please contact the Accounting Department with any questions and/or recommendations.

General Information

Purpose of Activity Funds

The Activity Fund is designed to account for funds held by a school in a trustee capacity or as an agent for students, club organizations, faculty and the general administration of the school. These funds are generally from the collection of student fees, vending commissions, fundraising activities, and various other sources. Activity funds are to be used to promote the general welfare, educational development and morale of all students.

Responsibility for Activity Funds

The Principal at each campus is ultimately responsible for the proper administration of campus activity funds. This responsibility includes:

  1. Providing for the safekeeping of monies
  2. Proper accounting and administration of transactions
  3. Expenditure of funds in compliance with applicable state laws and administrative guidelines
  4. Adequate training and supervision of all personnel designated by the Principal to administer activity funds

The Principaland campus personnel are not responsible for funds collected, disbursed and controlled by parent or booster organizations. These parent and booster organizations funds should be handled by the officers of the respective group, not by campus personnel.

Type of Activity Funds

There are two main categories of activity funds:

Campus Activity Funds (CAF) – Consist of funds generated locally at the school or donated to the school. These funds include school office and departmental accountssuch as vending, fundraising, etc. These funds are accounted for in Fund 461 and are considered District funds. Campus activity funds are considered by TEA to be district general funds. The expenditure of these funds must comply with state and board policy and with district regulations and purchasing policies.

Student Activity Funds (SAF)–Consist of funds generated by specific student groups, not by the District or campus. These funds include student groups such as band, class funds, student council, clubs, etc. These funds are accounted for as fiduciary trust funds in Fund 865 and are not owned by the District. Decisions about the expenditure of these funds are generally controlled by the student group with the assistance and supervision of a school district employee/sponsor. Sponsors of these organizations have fiscal responsibility to ensure proper collection and expenditure of funds.

Retention of Records

The campus records should be maintained for five years after the conclusion of the fiscal year and remain available for audit at any time.

Audit of Activity Funds

The Staff Accountant performs audit procedures on activity funds annually. In addition, an audit will be performed whenever there is a change of Principal or financial Secretary. The Principal may also request a special audit if a situation or event warrants it.

Section I: Cash Receipts

  1. General Policy Guidelines
  1. A receipt should be issued for all money collected. The only exception is returned checks. See “Returned Checks” section of this manual.
  1. All money (cash and checks) collected must be deposited to the activity fund bank account in the same form as collected. Cash collected may not be used to make purchases or payments of any kind. Personal checks may not be cashed from funds collected.
  1. Do not co-mingle personal funds and District funds for any reason.
  1. All checks received should be restrictively endorsed at the time they are received (stamp or write on the lines on the back of the check: “for deposit only” or name of checking and bank account check is to be deposited).
  1. Cash receipts are not to be pre-signed or pre-dated.
  1. The receipt number of the applicable activity fund checks received should be noted on all checks. This enables them tobe accounted for properly in the event they are returned for nonpayment.
  1. Checks should always include a name, address, phone number and driver’s license number when possible. Postdated checks shall not be accepted from any source.
  1. All SAF will have a sponsor who is a District employee (not the Secretary). Sponsors are responsible for submitting funds collected to the Secretary. Sponsors should not keep money unsecured in the classrooms, take money home, or co-mingle money with personal funds. Large collections should be submitted to the Secretary daily; small amounts (less than $50) may be maintained in a secured, locked location for no more than oneday and submitted to the Secretary by the next available day. Please note that money should never be held over the weekend.
  1. Purpose of Receipts

There are several purposes of a receipt:

  1. Provides the payee with evidence of the amount of money delivered.
  2. Provides acomplete record of all cash received.
  3. Provides an audit trail of the cash receipt process to protect against misappropriation of funds as well as proper accounting for the transaction.
  1. Receipt Issuance

All funds collected should be documented on a receipt by the person collecting the funds whether collected by student, teacher, secretary, etc. There are several receipt forms which may be used including:

  1. Sponsor/Teacher/Student:

Tabulation Form: This form may be utilized for receipts from many individuals for the same purpose. The form lists each payee, amount, whether paid by cash or check and is initialed by the person/student submitting the funds when possible. Before submission to the Secretary, the person receiving funds totals the amounts on the sheet and agrees to actual cash and checks. Forms should be filled out completely before submitting to the Secretary, or they will not be accepted. See Activity Fund Forms for Sample Tabulation Form.

As an alternate to the Tabulation Form, it is allowable to use a class roster and document the amount received by each student’s name along with their initials when possible. The roster should also indicate whether the amount received was cash or check and the check number. If a roster is used, a Deposit Form should be attached to the roster before submission to the Secretary. Forms should be filled out completely before submitting to the Secretary, or they will not be accepted.See Activity Fund Forms for Sample Deposit Form.

Product/Ticket Receipt Form: This form may be used when collecting money for activities where it is not feasible or possible to list each individual payee and in which product or tickets are issued to the payee. These events may include sales of items such as food, T-shirts, tickets for dances or events, etc. Before delivery to the Secretary, the sponsor will list the item description, beginning and ending quantities, price of items sold, calculate the sale amounts and verify that the actual cash and checks received total the amount listed on the form. Forms should be filled out completely before submitting to the Secretary, or they will not be accepted.See Activity Fund Formsfor Sample Product and Ticket Receipt Forms.

Individual Receipts: This form may be issued for funds collected individually. The receipt should be filled out completely including: date, received from, amount, purpose, cash/check/coin, and received by. The original is issued to the person submitting the funds. After all receipts have been issued, a Deposit Form should be completed and carbon copies of the receipts should be attached. The Deposit Form indicates the date, receipt number range and total amount by type (cash/check/coin). The person completing the Deposit Form should verify the amount submitted agrees to thetotal per the receipts. Forms should be filled out completely before submitting to the Secretary, or they will not be accepted. See Activity Fund Formsfor Sample Deposit Form.

Note: Sample forms are provided in the Activity Fund Forms. Each school may choose to use a customized form. This is allowable as long as all information captured on the sample form is included in the school’s customized form.

  1. Secretary:

Funds received from individuals:

The Secretary counts the funds received in the presence of the individual submitting the funds unless received in a sealed bank bag. Upon verification that the funds received agree to the submitted form, the Secretary should enter a receipt into Munis and give a copy to the teacher/sponsor.

Note: Refer to the School Activity Bookkeeping Guide for instructions on entering a receipt in Munis.

Note: In cases where the Secretary is unable to count funds at the time submitted, the funds should be placed in a sealed bag and placed in the safe until such time that both parties are available to open the sealed bag, count the funds and issue a receipt.

Funds received in the mail:

Receipts issued for funds received in the mail should be issued in the name of the company the funds were received from (i.e.Coca-Cola, ABC Company, etc.) and attached to the receipt.

Section II: Deposits

  1. General Policy Guidelines
  1. Deposits should be made daily. In the event money is received after the daily deposit, it should be stored in the campus safe/vault and deposited the following day. As a general rule, funds in the safe/vault should not exceed the following amounts:
  1. Elementary $500
  2. Middle School $500
  3. High School $750
  1. Funds must be deposited in the same form the funds were collected. Checks cannot be cashed from the daily deposit.
  1. All checks should be restrictively endorsed at the time received.
  1. The validated deposit slip and supporting documentation for the deposit (receipts, forms, etc.) should be filed and maintained in an organized manner. We suggest supporting documentation for deposits be attached to the validated deposit slip and be filed together.
  1. Deposits (regardless of amount) should never be held over school approved breaks (Thanksgiving Break, Christmas Break, Spring Break, Summer Break and/or 4th of July Break) which last greater than 1 week.
  1. Deposit Preparation

To assist in the preparation of the deposit slip, the Secretary completes the deposit slip (should use duplicate deposit slips), documents the range of receipt numbers included in the depositon the deposit slip and take the deposit to the bank. The deposit should at all times agree to the total of the receipt numbers listed on the deposit slip. The validated deposit slip andany supporting documentation for the deposit should befiled and maintained in an organized manner.

Note: Refer to the Munis Activity Bookkeeping Guide for further examples and instructions.

Section III: Cash Disbursements

  1. General Policy Guidelines
  1. All payments should be made by check. The only exception is petty cash. See “Petty Cash” section of this manual for policies and procedures for maintaining petty cash.
  2. All checks must be supported by an original, itemizedinvoice or receipt; copies are not acceptable forms of documentation. Payment will not be made without invoices/receipts.
  1. All invoices/receipts should be submitted to the Secretary in a timely manner. Late payments to vendors reflect on the entire school district, and could result in late payment fees or interest charged to the account. Texas Government Code Chapter 2251.021 requires the district to pay vendors within 45 days of the later of: the date the goods are received; the date of the performance of the service; or the date we receive the invoice.
  1. All checks shall be approved on a Check Request Form by the Principal (and Club Sponsor where applicable) with original signatures. In addition, checks over the following amountsshall also be approved by the Finance Committee:
  1. Elementary $500
  2. Middle School $500
  3. High School $750
  4. See Activity Fund Forms for Sample Check Request Form.
  1. Stamped signatures are not allowed on check requests or checks. Only original signatures will be allowed.
  1. Individuals making purchases to be reimbursed by activity funds should have verbal permission before making the purchase. Verbal permission for a purchase should not be given unless adequate funds are available for the purchase.
  1. No checks should be written unless sufficient funds are availablein the appropriate activity fund.
  1. All accounts should have anapproved signer. The Secretary should never be an approved signer on the account.
  1. At no time should blank checks be signed and maintained.
  1. Blank check stock should be properly safeguarded with only authorized personnel having access.
  1. Voided checks should be properly retained and defaced.
  2. Payments should never be made to employees from the activity fund for services rendered, extra-duty or overtime; these payments must be made through the Payroll Department.
  1. People or companies who are paid for services must be identified as independent contractors. Payments to contractors will be reported to the IRS and a Form 1099 will be issued to the contractor for any amounts paid. Contact Human Resources to ensure the proper forms are obtained for any contractors working with students. Payments to individual contractors should be supported by an invoice for services.
  1. There should never be a difference greater than $50 (plus or minus) on any check written to vendors like SAM’s who electronically clear your check for the amount of your purchase.
  1. All Principal and Secretary Reimbursements must be made using the Approval of Checks Written to Principal or Secretary Form (no exceptions) and the form must be signed by a Finance Committee member.
  1. All travel reimbursements must include an approved travel expense report prior to making payment.
  1. Overview of Use of Funds

Activity funds shall, to the extent possible, be expended to benefit those students currently in school who are associated with the group that accumulated such money. The Principal shall use reasonable discretion in expending funds in harmony with the stated basic purpose of the various funds. The collecting and expending of activity funds such as student vending, pictures, etc., should have as its basic purpose the promotion of the general welfare of the school and the education, development and morale of all students of the campus. The collecting and expending of studentactivity accounts such as band, student council, French Club, etc., should be in accordance with the stated purpose of the particular group.

Funds from student activity accounts belong to the students. Accordingly, student funds may not be diverted to a faculty controlled account for the purpose of spending the funds on the faculty (i.e. funds from a student account may not be deposited/transferred to a faculty account).

Individual student accounts are not allowed in any case. Student activity funds must be expended such that all members affiliated with the group receive an approximately equal amount of benefit.

In general, expenditure of activity funds should be able to pass the public scrutiny test. If you have to ask for permission, it is likely an inappropriate expenditure.

Note: See “Use of Funds Guidance” section of this manual for more detailed discussion topics on allowable and unallowable use of funds.

  1. Check Processing

The Principal reviews the Check Request Forms and supporting documentation to ensure the request is an allowable and appropriate disbursement. In addition, the Form is approved by the Sponsor and Finance Committee where applicable. After the Principal documents approval by signing the Form, the Secretary may print the checks. The checks are signed by the authorized signer on the activity fund account. The Secretary documents the check number, date and amount on the Check Request Form. Attach the Check Request Form to supporting invoices/receipts to be filed and maintained in an organized manner.

Note: The alternate, authorized check signer may approve Check Request Forms in the Principal’s absence. All approved signers should be familiar with the policies and procedures in this manual.

  1. Finance Committee

Each campus will elect a Finance Committee annually. The Committee should have a minimum of two teachers, elected by their co-workers, for each administrator on the Committee. The Committee should meet at a minimum three times per school year.

An Activity Account Finance Committee Form should be completed and submitted to the Director of Business by August 31 of the school year. See Activity Fund Forms for the Activity Account Finance Committee Form.