Financial Guidelines Manual › UserFiles › Servers › Server... · accounting, reporting and record keeping. This manual incorporates, but remains subject to applicable federal

1

FINANCIAL

GUIDELINES

MANUAL Updated July 2018

i

Table of Contents Financial Guideline Manual........................................................................................................................... 1

PURPOSE ................................................................................................................................................... 1

SCOPE ........................................................................................................................................................ 1

AUTHORITY ................................................................................................................................................ 1

REGULATIONS GOVERNING SCHOOL ACTIVITY FUNDS INTERNAL ACCOUNTS ......................................... 2

BASIC PRINCIPLES OF SCHOOL ACTIVITY FUNDS ....................................................................................... 3

FUND MANAGEMENT ............................................................................................................................... 4

Responsibility for School Activity Funds ............................................................................................... 4

CASH CONTROL ......................................................................................................................................... 8

Indebtedness ....................................................................................................................................... 10

Safes .................................................................................................................................................... 10

REVENUE ................................................................................................................................................. 11

Purpose ............................................................................................................................................... 11

Revenue Producing Activities.............................................................................................................. 11

Revenue Classification ........................................................................................................................ 11

Revenue Receipts ................................................................................................................................ 11

REVENUE DERIVED FROM COOPERATIVE ACTIVITIES .............................................................................. 12

Cooperative Activities ......................................................................................................................... 12

Revenue Controls for Cooperative Activities ...................................................................................... 13

PURCHASING AND EXPENDITURE CONTROLS ......................................................................................... 13

General ................................................................................................................................................ 13

TICKET MANAGEMENT ............................................................................................................................ 14

General ................................................................................................................................................ 14

Accounting for Serial Numbered Tickets ............................................................................................ 14

Duties of the Ticket Manager .............................................................................................................. 15

Duties of the Activity/Fund Sponsor in Relation to Ticket Sales ......................................................... 15

Duties of the Ticket Sellers/Takers ..................................................................................................... 16

TICKET MANAGEMENT & CASH CONTROLS FOR ATHLETIC EVENTS ....................................................... 17

General ................................................................................................................................................ 17

Strict ticket accountability is to be maintained at all high school ...................................................... 17

Additional Ticket Management Procedures for Athletic Events ......................................................... 17

FIDELITY BOND ........................................................................................................................................ 18

BANK ACCOUNTS ..................................................................................................................................... 18

ii

Checking .............................................................................................................................................. 18

Interest Bearing Accounts ................................................................................................................... 18

Conflict of Interest ............................................................................................................................... 19

Idle Funds ............................................................................................................................................ 19

PROCUREMENT CARDS ........................................................................................................................... 19

DEPOSITING OF DAILY RECEIPTS ............................................................................................................. 19

General ................................................................................................................................................ 19

Deposit and Receipt Forms Used by Collectors ................................................................................... 20

PERSONAL ACCOMMODATIONS ............................................................................................................. 20

General ................................................................................................................................................ 20

Pay Advances ....................................................................................................................................... 20

Personal Check Cashing ....................................................................................................................... 21

MEMORIAL GIFTS OR BEQUESTS ............................................................................................................. 21

CHARITY DRIVES ...................................................................................................................................... 21

ACCOUNT INFORMATION........................................................................................................................ 21

General ................................................................................................................................................ 21

Management ....................................................................................................................................... 21

Account Integrity ................................................................................................................................. 22

New Accounts...................................................................................................................................... 22

Account Categories and Numbering .................................................................................................... 23

Account Titles ...................................................................................................................................... 23

ACCOUNT CATEGORIES AND INFORMATION .......................................................................................... 24

Category “A”- Club/Organization Accounts ......................................................................................... 24

Category “B”- Instructional Accounts .................................................................................................. 29

Category “C” – Major Activity Accounts .............................................................................................. 36

Category “E”- Clearing Accounts ......................................................................................................... 54

Category “F” – Faculty Accounts ......................................................................................................... 63

GIFTS TO SCHOOL STAFF MEMBERS ........................................................................................................ 66

General ................................................................................................................................................ 66

Gifts of an Exceptional Nature ............................................................................................................. 66

Bonuses ............................................................................................................................................... 66

OPENING A NEW SCHOOL ....................................................................................................................... 67

DISPOSITION OF FINANCIAL ASSETS WHEN CLOSING A SCHOOL ............................................................ 67

General ................................................................................................................................................ 67

Planning ............................................................................................................................................... 67

iii

Temporary Closing............................................................................................................................... 68

Permanent Closing .............................................................................................................................. 68

AUDITS OF SCHOOL ACTIVITY FUNDS ...................................................................................................... 69

General ................................................................................................................................................ 69

Annual Audits ...................................................................................................................................... 69

Interim Audits ...................................................................................................................................... 71

Preparation for Audits ......................................................................................................................... 72

FINANCIAL STATEMENT ........................................................................................................................... 73

General ................................................................................................................................................ 73

Analysis Report Summary Section of the Financial Statement ............................................................ 73

Bank Statement Reconciliation Section of the Financial Statement .................................................... 73

Summary ............................................................................................................................................. 74

MAINTAINING SCHOOL ACTIVITY FUND RECORDS .................................................................................. 74

General ................................................................................................................................................ 74

Specific Records for School Activity Funds .......................................................................................... 74

SCHOOLBOOKS ACCOUNTING SOFTWARE .............................................................................................. 75

General ................................................................................................................................................ 75

Special Bookkeeping Transactions....................................................................................................... 75

Voided Checks ..................................................................................................................................... 75

Incorrectly Posted Entry ...................................................................................................................... 75

Backing Up the System ........................................................................................................................ 76

FORMS SECTION ...................................................................................................................................... 77

COOPERATIVE FUNDRAISING ACTIVITY AGREEMENT ......................................................................... 78

COOPERATIVE FUNDRAISING ACTIVITY AGREEMENT ......................................................................... 79

ANNUAL INCOME STATEMENT ........................................................................................................... 80

ADMINISTRATIVE USE OF CONCESSIONS FORM ................................................................................. 81

POLICE INFORMATION FORM ............................................................................................................. 82

TICKET INVENTORY LOG FORM ........................................................................................................... 83

INVENTORY FORM ACCOUNT ............................................................................................................. 84

CERTIFICATION OF SCHOOL HELD BANK ACCOUNTS FORM ................................................................ 85

REPORT OF TICKET SALES .................................................................................................................... 87

1

Financial Guideline Manual

PURPOSE

The Financial Guidelines Manual (FGM) provides the standard operating

procedures for school activity funds. The procedures and guidelines are intended to

provide a reasonable and systematic means for administering and operating school

activity funds including: administrative procedures; an effective system of

management, delineation of responsibilities; appropriate internal controls,

accounting, reporting and record keeping. This manual incorporates, but remains

subject to applicable federal laws, the Code of Virginia, State Department of

Education regulations, School Board Policies and Division Regulations.

SCOPE

The Financial Guidelines Manual applies to all schools and school division

employees operating school activity funds.

AUTHORITY

The Authority for the Prince William County Public School Board to

establish and operate school activity funds is provided for in the Bylaws and

Regulations of the Board of Education of the Commonwealth of Virginia pursuant

to the Code of Virginia. The School Board adopted Policies #352 and #354, which

authorize the establishment of the Financial Guidelines Manual and the

establishment and operation of school activity funds. The principal is directly

responsible for the conduct of student financial activities subject to state law, Prince

William County School Board policies, regulations, and the Financial Guidelines

Manual.

2

REGULATIONS GOVERNING SCHOOL ACTIVITY FUNDS

INTERNAL ACCOUNTS

(per the Virginia Board of Education)

1. Classification, responsibility for administration of regulations,

exclusion of specific funds:

“All funds derived from extracurricular school activities, such as entertainment,

athletic contest, club dues, etc., and from any and all activities of the school

involving personnel, students, or property are classified as school activity funds

(internal accounts). The local school boards shall be responsible for the

administration of these regulations in the schools under their control and may

determine which funds in any school may be excluded from those subject to these

regulations.

2. Records, school bookkeeper, bonds.

“Each school shall keep an accurate record of all receipts and disbursements so that

a clear and concise statement of the condition of each fund may be determined at all

times. It shall be the duty of each principal to see that such records are maintained

in accordance with these regulations and rules promulgated by the local school

board. The principal or person designated by him shall perform the duties of school

bookkeeper or central treasurer. The school bookkeeper shall be bonded, and the

local school board shall prescribe rules governing such bonds for employees who

are responsible for these funds.”

3. Forms:

“The use of forms prescribed by the Board of Education is not mandatory but the

basic information required by the uniform system must be incorporated in any system

substituted for that designed by the Board of Education.”

4. Audits; monthly and annual reports:

“School activity funds (internal accounts) shall be audited at least once a year by a

duly qualified accountant or accounting firm approved by the local school board

and a copy of the audit report shall be filed in the office of the division

superintendent and the Department of Financial Services. Monthly reports of

such funds shall be prepared and filed in the principal’s office, and annual reports

3

shall be filed in the office of the principal or division superintendent. The cost of

such an audit is a proper charge against the school operating fund or school

activity funds.”

5. Interpretation of regulations and forms:

“Nothing in these regulations or suggested forms shall be construed as superseding

or modifying the federal-state plan for operation of cafeterias under the National

School Lunch Act.”

BASIC PRINCIPLES OF SCHOOL ACTIVITY FUNDS

The establishment and operation of school activity funds shall be in

accordance with the following principles:

1. School activity funds shall be used solely in accordance with the purpose for

which such funds are collected.

2. Projects for raising school activity funds shall contribute to the educational

experience of pupils and shall not conflict with the instructional program.

3. Funds derived from the student body (as a whole) shall be used to benefit the

student body (as a whole).

4. Generally, school activity funds should be spent in such a way as to benefit

those pupils who are in school and who have contributed to the accumulation of

such funds.

5. Student representation is encouraged in the management of funds raised by the

student body and spent for its benefit, subject to faculty supervision.

6. School activity funds shall be managed in accordance with the best business

practices, including sound budgetary and accounting procedures.

7. Student body business shall be conducted in such a manner as to offer maximum

competition with commercial concerns.

8. Principals, through their representatives, shall participate in the preparation,

modification, and interpretation of the policies, regulations and procedures

affecting student body affairs.

4

FUND MANAGEMENT

Responsibility for School Activity Funds

The responsibility for safeguarding, accounting and managing the school

activity funds rests solely with the principal. To that end, these duties must be

performed in such a manner as to preclude any possible questioning of school

officials’ trustworthiness and fiduciary accountability from any inquiries by the

public. The duties that must be performed in providing proper management and

security of funds will be delegated to the school bookkeeper by the principal, but

the responsibility remains with the principal.

The following information outlines the duties, which must be performed by

the principal and/or school bookkeeper in order to achieve proper management and

security of funds. Other measures should be taken as necessary to carry out these

responsibilities.

1. PRINCIPALS

A. Will be familiar with and enforce the provisions of this manual.

B. Ensure that the school bookkeeper is properly instructed as to duties to be

performed, instructed in proper methods and procedures, and given adequate

supervision and guidance.

C. Obtain accurate and timely reports from the school bookkeeper covering the

results of operations and status of school activity funds.

D. Review and analyze the status and operations of the school activity funds

monthly. The review process should involve the school bookkeeper.

Department heads and fund sponsors should be involved if necessary. The

review should include but not necessarily be limited to areas such as:

1. Questioning of inactive accounts and deficit account balances.

2. Noting the cash position, considering reserved funds and outstanding

obligations.

5

3. Ensuring the accuracy of reported receipts and disbursements, by

account and in total, to include comparison with prior period.

4. Assessing the adequacy of and compliance with cash control

provisions.

5. Review purchase orders and checks presented for signature to ensure

that purchases and expenditures are properly authorized and supported.

6. Ensure that secure facilities are available and are used for protection of

cash and other assets.

E. The principal is responsible for designating a fund sponsor for each school

activity account. The principal may deem that it is appropriate for him/her to be

the fund sponsor for accounts in category “D” (School Operating) and “E”

(Prince William Clearing Accounts). An individual may be appointed as a fund

sponsor to more than one account.

F. Monitor the operation of “C” (Major Activity Accounts) with a view to (1.)

generating revenue, (2.) have responsible management, (3.) accurately maintain

inventory and (4.) avoid losses.

G. Monitor the implementation of approved audit recommendations and

management decisions of the principal or higher authority.

2. ASSISTANT PRINCIPALS

Assistant Principals will perform duties as delegated by the Principal. All

Assistant Principals will be familiar with the provisions of this manual even if no

duties have been delegated.

3. SCHOOL BOOKKEEPER

A. Will be familiar with and enforce the provisions of this manual.

B. Under supervision of the principal or designee, the school bookkeeper will

receive, receipt, prepare deposit, account for, and disburse all funds flowing

through the school activity fund accounts, except as otherwise directed by the

principal. Employees are not authorized to go to the bank with deposits or to

6

receive change. In an emergency, any visit to the bank must be preapproved by

Financial Services. The school bookkeeper, under the supervision of the

principal, will comply with all pertinent provisions of this manual.

C. Maintain all required records and furnish accurate monthly reports (ref. Student

Activity Funds (SAF) manual).

D. Review and analyze the status and operations of the school activity funds

monthly. Department heads and fund sponsors should be involved if necessary.

The review should include but not be limited to areas such as:

1. Questioning of inactive accounts and deficit account balances.

2. Noting the cash position, considering reserved funds and outstanding

obligations.

3. Ensuring the accuracy of reported receipts and disbursement, by account

and in total, to include comparison with prior period.

4. Assessing the adequacy of compliance with cash control provisions

5. Review purchase orders and checks presented for signature to ensure that

expenditures are properly authorized and supported.

6. Ensure that secure facilities are available and are used for protection of

cash and other assets.

E. Will monitor the operation of “C” (Major Activity Accounts) to ensure the

accounts (1.) generating revenue, (2.) have responsible management, (3.)

accurately maintain inventory and (4.) avoid losses.

F. Monitor the implementation of approved audit recommendations.

4. FUND SPONSORS AND OTHER SCHOOL PERSONNEL

The principal is responsible for designating a fund sponsor for each school

activity account. The principal and/or school bookkeeper will be the fund sponsor

for accounts in category “D” (School Operating) and “E” (Prince William Clearing

accounts). An individual may be appointed as a fund sponsor to more than one

account.

7

Fund sponsors, department heads, and other individuals with duties affecting

school activity funds will become familiar and comply with the portions of this

manual, which are pertinent to their duties. Such individuals must cooperate with

the school bookkeeper in order to perform their functions in a complete, accurate,

and timely manner. Those sponsors for activities that have a school activity fund

account are responsible for the integrity of the account.

A. Fund Sponsor: The fund sponsor will be an employee of the Prince William

County School Board, designated by the principal for the duration of the

school term unless relieved of these duties in writing by the principal. The

assignment as a fund sponsor may or may not be a supplemental pay position.

(Refer to Regulation 525.01-2).

B. Duties of a Fund Sponsor:

1. Submitting purchase requests to the school’s bookkeeper.

2. Certifying that the billings pertinent to the account are correct prior to

payment.

3. Ensuring that the school’s bookkeeper has on file copies of contracts,

purchase orders, etc. which are applicable to the account.

4. Collecting and receipting of funds received from the students.

5. Depositing such funds daily with the school’s bookkeeper or securing in

the school’s safe. If the activity is after regular school business hours, all

cash receipts must be placed in the school safe.

6. Ensure that everyone (i.e. co-sponsors, students, etc.) affiliated with

his/her account conduct themselves according to good business practices

and in compliance with this manual.

7. Will be familiar with contents of this manual.

8. Responsible for the solvency of the account and the propriety of the

school activity.

8

CASH CONTROL

The amount of cash and checks flowing through the school activity fund

necessitates stringent safeguards in the control of receipts and disbursements.

Proper control of the funds includes but not limited to:

A. All expenditures shall be made by check or Procurement Card except those

authorized to be made from properly established petty cash funds.

B. Check signing and savings withdrawal authority is limited to the principal,

his designee, and the school’s bookkeeper. Dual signatures are required on all

checks. Withdrawals are required to be ordered and delivered via the

armored car service.

C. All funds must be deposited at the next armored car pick up following the day

of collection regardless of the amount of cash on hand. Schools are required

to use the armored car service and are not permitted to go to the bank for

deposits or making change. In an emergency, any visit to the bank must be

preapproved by Financial Services.

D. Computerized receipts will be issued for all school activity funds.

E. Ticket sales shall be reported with the relationship established between

revenue and serially numbered tickets sold.

F. Strict account controls shall be used for petty cash funds and in the use of

change funds. Appropriate secure containers, i.e. safes, shall be used for

securing petty cash funds and change funds. Funds shall not be left unattended

or accessible to unauthorized personnel.

G. The maximum amount of all change funds combined kept in a school should

not exceed $3,000 on an ongoing basis. If additional change above this amount

is needed, it must be ordered and delivered by the armored car service and

then re-deposited immediately following the conclusion of the event it was

needed for.

G. The school bookkeeper shall reconcile bank statements monthly.

9

H. A monthly review of accounts is required and the documents needed for this

review are:

1. Monthly financial statement(s) for the month(s) being reviewed.

2. Documentation pertaining to expenditures for the month(s) being

reviewed.

3. Bank statement(s) and bank statement reconciliation(s) for the

month(s) being reviewed, to include saving account balances.

The review should affirm the reasonableness of data presented and ensure the

following:

1. The total school activity funds listed on the monthly report for the

month(s) of review should agree with the cash balance as reconciled with

the bank statements.

2. The total shown by savings account documentation (statement) should

agree with the amount shown on the monthly financial report.

3. The petty cash figure must be included on the monthly report and should

agree with the amount authorized by the principal.

4. The outstanding check total should be reasonable and most checks

appearing on the previous month’s reconciliation should not appear on the

reconciliation for the subsequent month of review. Checks for large

amount which continue to appear should be questioned.

5. Amounts listed as deposits in transit at the end of a month should appear

on the bank statement on the first business day of the following month.

6. All items involved in the bank reconciliation should be logically

explained and understood.

7. In person deposits and withdrawals are not occurring.

Loss of Cash

Any loss of money, including checks, will be promptly reported by telephone

to the Office of Risk Management and Security Services and to the appropriate law

enforcement authorities if theft is involved or suspected. The principal will then

complete the required incident report form.

10

Indebtedness

No school may incur an indebtedness, which will cause a projected year end

deficit without the approval of the respective Area Associate Superintendent and

the Director of Finance.

Safes

Each school is required to have the approved mailbox drop safe for

safeguarding of monies. The safe must be bolted to the floor.

The combination to the safe should be limited to 3 staff members – the

Principal, the school bookkeeper, and a Principal designee.

Safe combinations should be changed: annually (at a minimum);

immediately when a staff member who has access to the safe combination leaves

employment or no longer has a need to access the safe; or immediately if the

combination becomes known to unauthorized personnel.

11

REVENUE

Purpose

School activities are established as an addition to, and in support of, the

educational program. It is intended that school activities be self- supporting; hence,

revenue is necessary to establish and maintain the various activities.

Revenue Producing Activities

The principal shall ensure that all funds raising activities are approved in

advance and the requirements of Regulation 341-1 are met. Approval of fund

raising activities should consider the impact of such an activity upon local

businesses, parents, students, and other school and school division functions. In

accordance with the basic principles of school activity funds, no school activity

will be conducted for the sole purpose of generating revenue.

Revenue Classification

Revenue is classified for school activity fund purposes as either “General”

or “Specific”.

A. General Revenue: Revenue derived from a continuing or recurring

activity or service-performing operation, i.e. school store, popcorn,

pictures, annual fundraising event, etc. General revenue may be applied

beneficially for the entire student body.

B. Specific Revenue: Revenue obtained from a one-time project or event

which has been approved by the principal and the area associate to be

conducted by and for a specific purpose or a specified group of students,

e.g. car wash, candy sales, dues etc. Specific revenue should be applied

beneficially only for the student organizations concerned or for the

specific purpose for which the revenue was generated.

Revenue Receipts

All general and specific revenue classified as school activity funds will be

receipted into the school activity fund records daily. There will be no

disbursements made from the cash collected.

12

REVENUE DERIVED FROM COOPERATIVE ACTIVITIES

Cooperative Activities

Extracurricular school activities which involve the students, faculty and

school facility and which are conducted with the participation or support of an

outside organization (PTA, Booster Clubs, etc.) are classified as cooperative

activities. Funds derived from such activities are school activity funds and are to be

managed and accounted for accordingly except as provided below.

By action on September 16, 1981, the Prince William County School Board

excluded funds of certain organizations from the requirements of cooperative

activities provided the following conditions are met to the satisfaction of the school

principal:

1. The cooperating organization is a bona fide recognized school support

group, such as PTA or booster club and,

2. The majority of the fundraising effort is conducted by the cooperating

organization (students and staff may work as members of the

organization during non-school hours) and,

3. The amount of profits deposited to the school activity accounts is

determined by the amount of effort required from staff and students

(Co-Op Activities Form 1 or 2).

4. The cooperating organization submits an annual financial statement

for inclusion in the financial records of the school containing at least

the information specified on Co-Op Activities Form 3.

The dividing line between school activity funds and the organization’s funds

is determined by the principal and agreed to by the organization. Once determined,

school activity funds remain subject to this manual while the organization’s funds

remain the responsibility of that organization.

13

The principal shall:

1. Ensure that the four points above are met to his/her satisfaction,

2. Ensure the filing of an agreement form for each cooperative

fundraising activity (Co-Op Activities Form 1 or 2) and,

3. Ensure the filing of the organization’s Income Statement at least

annually (Co-Op Activities Form 3).

Revenue Controls for Cooperative Activities

If the cooperative activity involves the payment of an admission fee, such

fees will be controlled with serial numbered tickets obtained through and controlled

by the principal or his designee. (see Ticket Management).

PURCHASING AND EXPENDITURE CONTROLS

General

To effectively manage the school activity fund, the principal must have some

knowledge of future obligations prior to billings or disbursement. The absence of

such a system could involve the over- obligation of available school activity funds.

All purchasing of goods or services made from school activity funds is to be

done in accordance with the Purchasing Procedures Manual (see Section 4) for the

Prince William County School Board.

All purchases of goods or services made from school activity funds must be

related to student activities or cooperative activities.

14

TICKET MANAGEMENT

General

All school activities which involve the students, faculty and the school

facility and for which an admission fee of two dollars ($2.00) or more is charged,

will be controlled by the use of serial numbered and color-coded tickets supplied

from an inventory of tickets under the control and supervision of the principal.

Tickets will be issued on an event-to-event basis, except for athletics, which may

have tickets issued on a seasonal basis. If there are multiple admission fees for a

single event regardless of the amount, separate color-coded tickets must be used

for reconciliation.

Accountability of serial numbered tickets in sequential order is absolutely

required for all athletic events. Other events will be required to account for tickets

in sequential order, except when they are sold by more than five (5) individuals.

When non-athletic events use more than five (5) ticket sellers, the Activity/Funds

Sponsor to whom the tickets were issued by the Ticket Manager will be held

accountable for the total number of tickets issued, but not necessarily in sequential

order.

Accounting for Serial Numbered Tickets

Tickets used for control of admission revenue have monetary value and are

only slightly less sensitive than cash with regard to fraud, theft and abuse. School

authorities must be able to ensure proper control of admission revenue. To that end,

the principal will designate in writing a staff member as the Ticket Manager. The

Ticket Manager will procure, control and dispense tickets used in the school. Along

with the principal, this person will exercise general supervision of ticket use in the

school.

The principal is encouraged to appoint the school bookkeeper as the Ticket

Manager. In the event the principal elects to appoint some other staff member, that

person will be responsible for seeing that the ticket documentation and records are

available to the school bookkeeper at the time of the annual audit. All schools will

account for tickets and ticket sales in accordance with the instructions outlined in

this manual. Records will be kept which provide for ready determination of the

following information.

15

1. The Ticket Manager will maintain a Ticket Inventory Log in each

school. The log will include the quantity of tickets contained in

inventory at the beginning of the school year, the quantity purchased

during the school year and the remainder of tickets on hand at the end

of the school year.

2. Sale of tickets by numbers, event, date of event and price

3. The number of tickets:

a. Issued free

b. Destroyed

c. Lost or stolen

d. Season tickets sold and/or given free

Duties of the Ticket Manager

1. To maintain the Ticket Inventory Log Form, this will include the

distribution of season tickets.

2. To obtain the necessary quantity and color of pre-numbered tickets.

3. To immediately notify the principal of any accountability

discrepancies.

4. To work directly with the Activity/Funds Sponsor in relation to ticket

sales.

5. To issue the required quantity and appropriate color of tickets to the

Activity/Fund Sponsor.

6. To ensure that the Activity/Fund Sponsor properly completes the

Report of Ticket Sales Form.

7. Other duties as assigned by the principal in relation to proper

management and security of ticket sales.

Duties of the Activity/Fund Sponsor in Relation to Ticket Sales

1. To provide for proper supervision of the ticket sellers/takers at the

school event.

2. To deposit all monies collected from ticket sales in the school safe or

with the school’s bookkeeper. If the activity is after regular school

business hours, all cash receipts must be placed in the school safe.

3. To ensure that the Report of Ticket Sales Form is properly completed

immediately after the event.

16

4. To maintain and balance the Report of Ticket Sales Form for all pre-

sale tickets, if applicable.

5. To ensure that the unused tickets are returned to the Ticket Manager.

6. Other duties as assigned by the Ticket Manager in relation to proper

management and security of ticket sales.

Duties of the Ticket Sellers/Takers

1. To sell and/or take tickets under the direct supervision of the

Activity/Fund Sponsor.

2. To properly complete the required portion of the Report of Ticket Sales

Form and return the unused tickets to the Activity/Fund Sponsor.

3. To adhere to the following general procedures unless directed otherwise

by the Activity/Funds Sponsor:

a. Ticket seller will sell a ticket for each person entering the event

except for those individuals holding a valid ticket issued prior to

the event.

b. The ticket taker will collect the ticket as the person enters the gate

and place it in a ticket box.

c. The ticket takers will turn in the ticket stubs to the Activity/Fund

Sponsor, who will retain them until the Report of Ticket Sales

Form is reconciled.

d. The ticket seller will count the cash receipts at the end of the event

and fill out the Report of Ticket Sales Form.

4. Other duties as assigned by the Activity/Fund Sponsor in relation to

selling and taking tickets at a school event.

17

TICKET MANAGEMENT & CASH CONTROLS FOR

ATHLETIC EVENTS

General

Strict ticket accountability is to be maintained at all high school

athletic events for which an admission fee is charged. However, ticket

accountability is only required at middle school athletic events for which an

admission fee of two dollars ($2.00) or more is charged. The procedures and duties

per the Ticket Management section of this manual will apply to athletic events.

Additional Ticket Management Procedures for Athletic Events

1. A minimum of one ticket seller and one ticket taker is required for high

school varsity football, boys’ varsity basketball, and for district, regional

and state events. One individual; may perform the duties of both ticket

seller and ticket taker for all other athletic events but should be avoided

whenever possible. Additional help may be provided based on the needs

of the individual school.

2. Ticket seller and ticket takers may be paid for services rendered.

Remuneration will be on a per game basis in accordance with the

Procedures for Payment of Wages section of this manual.

3. After the ticket seller has counted the money and the appropriate areas on

the Report of Ticket Sales Form have been completed, the money and the

Report of Ticket Sales are placed in the bank bag.

4. The bank bag will then be provided to the Activity Sponsor or

Administrator on duty.

5. The Activity Sponsor, or designee, will count the money and verify the

amounts on the Report of Ticket Sales. Once the report has been verified,

the report and money will be placed in the school safe.

6. The money then will be re-verified by the school bookkeeper. When both

the Activity Sponsor and the school bookkeeper agree on the amount of

money, a receipt will be rendered and the money will be processed for

depositing.

NOTE: Bills and security services will not be paid out of gate receipts, but paid by

check from the school account. Gate receipts are to be kept intact prior to receipting

and depositing.

18

FIDELITY BOND

The School Board provides a blanket position bond that covers all

employees’ dishonest acts arising out of their employment. It does not protect the

employee against a subsequent claim by the bonding company for any loss

sustained through settlement of a claim due to any dishonesty on the part of an

employee. The bond protects the assets (money) of the fund but not the individuals

charged with the responsibility for such assets. The responsibility for safeguarding

school activity funds lies directly with the principal and the school bookkeeper.

Their actions and authority should be governed and respected accordingly.

BANK ACCOUNTS

Checking

Only one checking account will be established for the school activity funds

for each school. The account will be titled in the name of the Prince William

County School Board followed by the school’s name and address. The checking

account is to be established and maintained with DUAL SIGNATURES being

required on all checks drawn against the account. The school’s principal, school

bookkeeper and other persons designated by the principal may be co-signers on

checks.

Interest Bearing Accounts

Schools may choose to convert their checking account to one that pays

interest on the account balance. Schools with adequate balances are encouraged to

take advantage of the banking laws and have additional interest-bearing accounts.

By utilizing these types of accounts, schools can keep the majority of funds on

deposit in an interest-bearing account and then transfer funds to the regular

checking account to cover expenditures.

In cases where the school’s bank will convert the checking account to an

interest -bearing account with no other changes, the principal is encouraged to

consider converting the account. A principal who wishes to convert, but whose

bank requires an account number or other change may do so, but the local school

must pay any added cost including the cost of new checks.

Interest earned will be shown on the school activity books in an account

called “Interest Revenue” (Cat. D). This will be posted on whatever basis the bank

19

reports to the school. Service charges will be recorded in the school activity books

in an account called “Bank Fees” (Cat. D). Interest earned can be used to cover the

bank fee expenditures. When bank fees exceed interest revenue, a transfer is

necessary from another account to cover the negative balance at fiscal year-end.

Transfers of revenue earned may be made at the discretion of the principal, but are

limited to 25% of the net interest earned, when used as revenue for faculty

accounts.

Conflict of Interest

To avoid the appearance of a conflict of interest, school activity funds will

not be deposited in any bank, credit union or other financial institution in which the

principal or any other official of the school holds a position of trust or authority.

Idle Funds

The identification and availability of idle funds will be determined through a

recurring comparison of the balances shown on the ledgers and the bank statement

against which the anticipated cash flow will be applied. Such funds should be

placed in interest-bearing accounts to take advantage of interest earnings.

PROCUREMENT CARDS

A credit card shall be issued by a financial institution for the purpose of

enabling Prince William County Schools and offices to acquire needed materials in

a timely and efficient manner. The procurement card shall be issued in the name of

the school.

The procurement card shall be used in accordance with established

procurement regulations (Reg. 322-2). If items are purchased that exceed the single

quote threshold set by Purchasing, competition must still be obtained in the same

manner as purchases done by purchase order. While there is no requirement to

obtain competition for purchases less than the competitive threshold, price quotes

are encouraged whenever possible.

DEPOSITING OF DAILY RECEIPTS

General

All funds collected by any staff member must be remitted to the school’s

bookkeeper or placed in the school safe on the day collected. If the activity is after

20

regular school business hours, all cash receipts must be placed in the school safe.

These funds and any funds collected directly by the school’s bookkeeper (in

aggregate) are to be deposited at the next armored car pick up following the day of

collection regardless of the amount of cash on hand. Schools are required to use the

armored car service and are not permitted to go to the bank. All visits to the bank

need to be preapproved by Financial Services. All funds must be deposited at the

next armored car pick up regardless of the amount of funds on hand.

Caution- Under no conditions will funds from one month be co-mingled with

funds from the next month on the same deposit slip.

Properly established petty cash funds and change funds may be retained in

the school building from day to day. All change funds not necessary for the

summer months are to be remitted to the school’s bookkeeper prior to June 30 of

each year. These change funds will be closed out and reissued in the fall.

Deposit and Receipt Forms Used by Collectors

All collectors are required to complete the Official Deposit Form when

collecting money. The form lists the date money was received, the student name,

reason for collection and amount for each individual student. The completed

deposit form must accompany the deposit funds and placed in the school safe. The

school may issue receipt books to persons collecting monies. The collectors can

complete a receipt for each individual they are collecting money. The original receipt

should go to the individual to show receipt of money. The duplicate copy can be

attached to the Official Deposit Form for the bookkeeper when depositing daily funds.

PERSONAL ACCOMMODATIONS

General

School activity funds will not be used for any purpose, which represents an

accommodation, loan, advance of pay or other direct benefit to an individual. Since

school activity funds are derived from the student body (as a whole) or a select

club/group, they are to be expended in a manner that benefits the student body (as a

whole) or the select club/group.

Pay Advances

Pay advances are not allowed.

21

Personal Check Cashing

No checks will be cashed.

MEMORIAL GIFTS OR BEQUESTS

Memorial gifts should be accepted with a written record designating the

purpose or intended use of the gift. If such a record if not received, or if the donor

declines to provide one, the gift will be used as determined by the principal.

Regardless of the nature, cash, or equipment, the guidelines found in

Regulation 423-1 will apply. When funds are involved, they will be accounted for

in accordance with this manual’s established accounting categories.

CHARITY DRIVES

School-wide charity drives will be limited to those approved by the

Superintendent, i.e., those for which material is distributed from the central office.

Donations for such drives will be accepted from the pupils, parents, and staff but

not from the general public. Such donations will be purely voluntary and the

establishment of a quota or other scheme suggesting achievement in obtaining

donations will be avoided.

Any funds solicited to help a needy family may be forwarded to a local

non-profit organization for final resolution. Checks are not to be written directly to

the individual(s) involved.

ACCOUNT INFORMATION

General

All activities associated with and funds flowing through school activity funds

shall be categorized into the account structure defined herein. Specific school needs

or exceptions should be addressed to the Director of Financial Services.

Management

The purpose of the accounting structure is to provide a system of accounts

for the principal and school staff to manage the financial affairs of the school

activities fund. The account structure is divided into two basic parts. First, all

accounts are divided into categories which are primary accounts used to define

major school activities or groups. Second, the numbering of accounts within

categories provides for accounting of specific activities or groups.

22

Account Integrity

This concept refers to the various transactions that should be properly

recognized in the appropriate account(s). The major sales activities as defined in

Category “C” are the accounts in which the account integrity will have to be

properly maintained in order to allow for the comparison of revenue with the

associated costs. Specifically, only revenue generated from the sales activity and

the costs associated with purchasing the merchandise will be reflected. The

proceeds will be transferred to the appropriate account(s) for expenditure.

An exception to the concept of account integrity is allowable when a

commission check is received or the sales activity spans only one accounting period

(month). The principal may choose one of the following methods of accounting for

the revenue received:

1. Receipt to the account, pay the associated costs and transfer the proceeds

to other accounts for expenditure. 2. Receipt directly to an account for expenditure.

3. Receipt to the account, pay the associated costs, and expend directly from

the account if he/she chooses to track expenditures.

New Accounts

All school activity funds will be accounted for within the set of accounts

established in this manual. No school activity account will be established without

the approval of the Director of Financial Services or designee.

23

Account Categories and Numbering

The accounting structure divides the accounts into six major categories with

a corresponding numbering system for each category. Within each category,

accounts are to be maintained in alphabetic order. The category and numbering

sequence is:

Category

A

Category Description

Club/Organization Accounts

Numbering Series

1000’s

B Instructional Accounts 2000’s

C Major Activity Accounts 3000’s

D School Operating Accounts 4000’s

E PWCS Clearing Accounts 5000s

F Faculty Accounts 6000’s

Account Titles

The account title should reflect the purpose for which the account is to be

established. Account titles are to be drawn from the listing provided within each

category. If a title does not appear to suit a school’s particular need, with the

approval of the Director of Financial Services, you may place the account in the

proper category (i.e. A, B, C, D, E, F) and use the number assigned by Finance.

24

ACCOUNT CATEGORIES AND INFORMATION

Category “A”- Club/Organization Accounts

Definition

These accounts contain funds dedicated to the beneficial use of a distinct

group of students, enrolled in the Prince William County Public Schools, who have

formed themselves into an organized entity with student officials who have been

either elected or appointed from among the group. The activity is planned to

occupy the attention and interest of the group/club concerned as opposed to the

interest and concern of the entire student body.

Revenue

Revenue is derived from the students themselves via dues, or fundraising

projects that have been approved by the principal and level associate.

Expenditure/Transfer Authority

Expenditure/transfer authority requires the concurrence of the student

members through their officials, the fund sponsor, and the principal.

Account Balance

The account must hold a positive or zero balance at the end of the school year.

Funds not expended in one school year will be carried forward to the next school year

for the benefit of the club/organization.

Termination of an Account

If a club is inactive for two school years the balance of the account may be

transferred to another account designated by the principal.

The current year’s senior class account must be closed out in a timely

manner. This will be done via a written statement from the sponsor and class

president to the principal designating the use and/or transfer of the remaining funds.

25

Chart of Accounts for Category “A” Accounts

A1000.00 African American Awareness

A1001.00 Acts of Kindness Club

A1002.00 American Red Cross

A1003.00 America’s Club (Support Our Troops)

A1004.00 Anime

A1005.00 Art Club

A1006.00 Animal Rights Club

A1010.00 Art Honor Society

A1011.00 Basketball Club

A1012.00 Asian Student in America

A1013.00 Black History Club

A1014.00 Aviation Club

A1015.00 Builders Club

A1020.00 Cheerleaders High School

A1025.00 Cheerleaders Middle School

A1030.00 Chess Club

A1035.00 Class 2021 or 2026

A1040.00 Class 2022 or 2027

A1045.00 Class 2023 or 2028

A1050.00 Class 2019 or 2024

A1055.00 Class 2020 or 2025

A1065.00 Computer Club

A1066.00 Culinary Arts Club

A1069.00 Cyberdefense Club

A1070.00 Dance Team

A1071.00 Dance Team Break Dance

A1075.00 Debate/ Forensics Club

A1080.00 Distributive Education Club of America DECA

A1085.00 Drama Club

A1095.00 Drill Team

A1100.00 Drug Free Fun Club

A1105.00 Ecology/Science Club

A1108.00 Edge Club

A1109.00 Environmental Club

A1110.00 Fashion Merchandising

A1115.00 Fellowship Christian Athletics FCA

A1120.00 Foreign Language Club

A1122.00 Forensics

26

A Accounts continued

A1125.00 French Club

A1128.00 Friends of Rachel's Challenge (FOR Club)

A1130.00 French Honor Society

A1135.00 FBLA (Future Business Leaders of America)

A1140.00 FBLA (Future Business Leaders of America/Middle Schools)

A1145.00 Future Consumers of America

A1147.00 Future Educators of America Club (FEA)

A1150.00 Future Farmers of America FFA

A1155.00 Future Homemakers of America FHA/ FCCLA

A1157.00 Gardening Club

A1158.00 Georgraphy Club

A1160.00 German Club

A1165.00 German Honor Society

A1166.00 Girl's Empowerment Club

A1170.00 Golf Club Middle School

A1175.00 Gymnastics Team Middle School

A1180.00 Health Occupations Student Association HOSA

A1185.00 Hero Club

A1190.00 Hispanic Student Union

A1195.00 Historical Gamers Club

A1198.00 Indian Student Association

A1199.00 International Club

A1200.00 Its Academic

A1205.00 Junior Civitan Club

A1206.00 ARK Club (Acts of Random Kindness)

A1210.00 Just Say No Club

A1215.00 Key Club

A1220.00 Latin Club

A1222.00 Latin Honor Society

A1224.00 Leadership Club

A1225.00 Leo Club

A1226.00 L.E.T.T.U.C.E. (UNICEF)

A1230.00 Empowering Girls

A1235.00 Literary/Book Club

A1240.00 Math Counts

A1245.00 Math/ Computer Club

A1248.00 Mock Trial

A1250.00 Model United Nations

27


A1253.00 Muslim Student Association

A1255.00 Multicultural

A1260.00 Multicultural Club Boys

A1265.00 Multicultural Club Girls

A1270.00 Music Club

A1271.00 Music Honor Society

A1272.00 National Business Honor Society

A1273.00 National English Honor Society

A1275.00 National Junior Honor Society

A1276.00 National Technical Honors Society

A1280.00 National Honor Society

A1285.00 Navy Club

A1290.00 Newspaper Club

A1293.00 Nippon 2000 (Japanese) Club

A1295.00 Odyssey of the Mind

A1300.00 Patrols

A1302.00 Buddy Club

A1303.00 Peer Diversity

A1305.00 Pep Club

A1308.00 Photography/Graphic Club

A1310.00 Problem Solvers

A1312.00 Physics Honor Society

A1315.00 Quill & Scroll

A1318.00 Robotics

A1319.00 Running Club

A1320.00 Save the Environment Club

A1321.00 The Mane Experience (Special Ed Riding Club)

A1323.00 Rotary Club

A1325.00 SCA Club (NOT Student Council)

A1330.00 Science Club High School

A1335.00 Science Club Middle School

A1340.00 Science Fair 6th grade

A1345.00 Sign Language Club

A1347.00 Social Studies Honor Society

A1350.00 Spanish Club

A1355.00 Spanish Club Honor Society

A1360.00 Spartan Spectrum

A1365.00 Stage Crew

28


A1366.00 STAR Club

A1370.00 Step Team

A1371.00 STEAM

A1375.00 Student Activities

A1380.00 Student Against Destructive Behavior

A1385.00 Students Against Drunk Driving

A1387.00 Team Nutrition (Healthy Kids)

A1390.00 Technology Education Club

A1391.00 Science & Technology Club

A1395.00 Tennis Club Middle School

A1400.00 TV Club

A1401.00 UNICEF

A1402.00 Ultimate Frisbee

A1405.00 Varsity Club

A1410.00 VICA

A1418.00 Volleyball Club

A1419.00 Woodshop Club

A1420.00 Work and Family Studies Club

A1425.00 WWF Club

A1426.00 Life Chance (Karate Club)

A1430.00 Yearbook Club

29

Category “B”- Instructional Accounts

Definition

These are accounts established for the benefit of specific instructional

programs.

Revenue

Revenue is derived from:

1. Clientele fees for services provided in furtherance of instructional effort (e.g.

cosmetology).

2. Sales projects undertaken to produce specific revenue.

3. Transfers of funds allocated from other accounts


Expenditure/transfer authority rests with (1) the chairman of the department

concerned or (2) the fund sponsor, subject to the approval of the principal.

Account Balance

Individual accounts in this category may hold a deficit balance at times, but

will not end the school year with a deficit balance. Funds in excess of instructional

needs for the current school year will be carried forward to the next school year.

Termination

If the activity or purpose for which an account in this category was

established ends, the balance will be disposed of by returning the funds to the

original account, or to a comparable site based management account (S.B.M.).

30

Chart of Accounts for Category B Accounts

B2000.00 ABC Class

B2001.00 ACT Test

B2010.00 Advance Placement Testing

B2015.00 Advisory

B2020.00 After School Foreign Language

B2030.00 Art Department

B2035.00 Attendance Incentives

B2040.00 Auto Mechanics

B2041.00 Battle of the Books

B2045.00 Birthday Books/ Friends of the Library

B2050.00 Book Store (Instructional Only)

B2055.00 Business

B2059.00 Cabinet Making

B2060.00 Child Care

B2065.00 Computer Lab

B2070.00 Construction

B2075.00 Cosmetology

B2077.00 Culinary Program

B2080.00 EIAP Class Activities

B2085.00 Electronics

B2090.00 Employ Class

B2095.00 English

B2100.00 Enrichment

B2105.00 ESL

B2110.00 Field Trip

B2115.00 Field Trip

B2120.00 Field Trip

B2125.00 Field Trip

B2130.00 Field Trip

B2135.00 Field Trip

B2136.00 Field Trip

B2140.00 Fit N Fun

B2145.00 Foreign Language

B2150.00 Foreign Language in Spanish (FLIS)

B2155.00 Garden Project

B2160.00 Gifted Ed

B2164.00 Preschool Activities

B2165.00 Grade 1 Activities

31

B Accounts continued





B2190.00 Grade Kindergarten Activities

B2195.00 Grade Picnic End of Year

B2200.00 Grade Preschool Snack

B2203.00 Grade Special Ed Activities

B2204.00 Autism Activities

B2205.00 Accelerated Reader

B2205.00 Grads Program

B2210.00 Guidance

B2220.00 Guidance –Bully Program

B2230.00 Health & PE

B2235.00 Holiday Projects

B2240.00 Instructional, General

B2242.00 International Baccalaureate

B2243.00 Journalism

B2245.00 JNROTC

B2250.00 JROTC

B2254.00 Kindness Crew

B2255.00 King Arthurs Club

B2260.00 Library

B2265.00 Life Management Skills

B2267.00 Literary Committee

B2270.00 Literary Magazine

B2275.00 LPN

B2280.00 LPN- Pre-exam

B2285.00 LPN/HOSA

B2290.00 Mann Greenhouse

B2295.00 Manufacturing

B2300.00 Math

B2305.00 Math Manipulative

B2310.00 Multicultural

B2315.00 Music

B2316.00 Music-String (ES)

B2320.00 Music Band

B2325.00 Music Band All County

32


B2330.00 Music Band All State

B2335.00 Music Band Boosters

B2340.00 Music Band District

B2345.00 Music Band Festival

B2350.00 Music Band Festival District IX

B2355.00 Music Band Marching

B2360.00 Music Band Solo Ensemble

B2365.00 Music Choral

B2370.00 Music Choral All County

B2375.00 Music Choral All State

B2380.00 Music Choral District

B2385.00 Music Choral District IX Auditions

B2390.00 Music Choral Festival

B2395.00 Music Choral Festival District

B2397.00 Music Gospel Choir

B2400.00 Music Choral Honors

B2405.00 Music Choral Tapes

B2410.00 Music Drama

B2415.00 Music General

B2420.00 Music Jazz band

B2425.00 Music Orchestra

B2430.00 Music Orchestra All County

B2435.00 Music Orchestra Festival

B2440.00 Music Orchestra Regional

B2445.00 Music Orchestra Solo & Ensemble

B2450.00 Music Regional

B2455.00 Music Uniforms

B2465.00 Parenting Class

B2467.00 PE Skates

B2470.00 Physical Education

B2475.00 Physical Education Equipment

B2480.00 Playground

B2485.00 Popcorn (Instructional Only)

B2490.00 Power and Transportation

B2495.00 Printing

B2500.00 PSAT Test

B2505.00 Publications

B2506.00 Reading

33


B2510.00 Reading Incentive

B2515.00 Recorders

B2520.00 Recycle

B2525.00 S & P Swimming

B2535.00 SAT Testing & Prep

B2540.00 Save the Manatee Club

B2545.00 School Store (Instructional Only)

B2546.00 Scholastic Book Program

B2550.00 Science

B2555.00 Science Fair

B2560.00 Science Lab

B2565.00 Skydome Planetarium

B2570.00 Social Studies

B2571.00 SOL Activities

B2575.00 Special Education

B2580.00 Special Ed Café

B2585.00 Special Ed ED

B2590.00 Special Ed TMR

B2591.00 Speech

B2592.00 STEAM

B2593.00 Student Leadership

B2593.00 Specialty programs

B2595.00 Team 6A

B2600.00 Team 6B

B2605.00 Team 6C

B2610.00 Team 6D

B2615.00 Team 6E

B2620.00 Team 6F

B2625.00 Team 7A

B2630.00 Team 7B

B2635.00 Team 7C

B2640.00 Team 7D

B2645.00 Team 7E

B2650.00 Team 8A

B2655.00 Team 8B

B2660.00 Team 8C

B2665.00 Team 8D

B2670.00 Team 8E

34


B2675.00 Technology Education

B2680.00 Tutoring After School

B2685.00 TV Production

B2686.00 Ukulele Club

B2690.00 Vocational Education

B2691.00 Watch Dogs

B2695.00 Work & Family Studies

B2700.00 Workbooks

B2701.00 World Language

B2705.00 Young Americans Performance

B2710.00 Youth Leadership Conference

Birthday Books / Friends of the Library B2405

This money is contributed to buy books in honor or memory of a person. A

bookplate is placed on the book noting the person and reason.

Book Store (Instructional) B2050

This money was given by a grant and donations to purchase books and

replenish the stock, for students to buy books. It will be used to teach math,

advertising, communications, and customer services and NOT profit making.

Field Trip B 2110, 2115, 2120, 2125, 2130, 2135, 2136

Field Trips are for the payments of charter buses and admissions. Any

remaining money collected from students and chaperones for a single trip that

collectively exceeds $100 must be refunded or used to benefit the students that

contributed for that particular trip.

Popcorn (Instructional) B2485

Popcorn prepared and sold by students for instruction of life management

skills. These students learn social skills, math, etc. This is NOT for profit making.

Publications Account (book clubs) B2505

General

Two options are available to schools with regards to the operation of a

35

Publications Account (book clubs) and the accounting procedures associated with

the funds.

Regardless of the option chosen, all cash received plus any checks made

payable to the school will be accounted for through the student activities fund

bookkeeping system. Cash or checks made payable to the school shall be deposited

in the Publications Account. The school will issue one check to the vendor for the

portion of the order for which the school is responsible. A copy of relevant order

form(s) must be retained to document all transactions regardless of the option

chosen.

Under no circumstances may the principal knowingly permit teachers to

account for cash or checks collected from students through personal or any other

bank accounts.

Options

1. Schools may account for all funds associated with their book clubs and the

payments to the vendor(s) through the student activities fund bookkeeping

system.

2. Principals may advise teachers, parents, and students to use checks made

payable to the book club(s) when placing an order. Principals and teachers

should emphasize the use of checks and not cash. The teacher will collect the

checks, order form, and forward them to the school’s bookkeeper. The

school bookkeeper will balance the checks to the order form(s) and forward

the checks and order form(s) to the vendor (retaining a copy). No revenue is

recorded on the school’s books.

Bonus Points and/or Free Merchandise

All items received from the book club vendors (i.e. bonus points earned and

the related merchandise received as the result of cashing in these bonus points or

any free merchandise) becomes the property of the school, NOT the individual

teacher. These items are to be processed in accordance with Regulation 423-1 and,

if appropriate, included on the school’s inventory.

36

Category “C” – Major Activity Accounts

Definition

This category is for major student activities in which the entire student body

is involved or for sales and revenue producing activities.

Revenue

Revenue is generated from admission charged, fund raising activities and/or

the selling of school related merchandise.

Note: Refer to School Board Policy #354 and Regulations #341-1 and

#341-2.

Expenditure/ Transfer Authority

Authority to pay the costs associated with the fundraising activity and

transfer authority rests with the fund sponsor and/or school bookkeeper subject to

the approval of the principal.

Account Balance

An account in this category may have to show a deficit balance until

sufficient revenue is generated to cover related costs. However, these accounts

should not end the school year with a deficit balance, unless there is sufficient

inventory on hand to offset the deficit balance or cash balances in other accounts

may be used to remove the deficit balance.

Termination

Upon termination of the activity or purpose for which an account was

established, a transfer to an account as directed by the principal will dispose of the

balance.

Saleable Inventories

General

Inventories of school activity fund saleable merchandise represent in the

fullest sense, funds which are the property of the students and must be safeguarded

and managed accordingly.

Accounting for Sales of Inventory

Sales, which produce general revenue and involve inventoried merchandise

37

such as gym suits, school store merchandise, popcorn, etc., must be accounted for

in appropriately titled accounts as a means of determining profit and loss. Only the

revenue and expenses attributed to the sales activity will be included in these

accounts, except that profits may be transferred to appropriate accounts.

Inventory Valuation

An inventory of saleable merchandise will be taken at least annually during

the school year and recorded on the Inventory Report. This provides: (1) a

learning and responsibility opportunity for the students concerned with the sales

activity, (2) a control and safeguarding mechanism and (3) preparation for the

annual audit. Inventory values will be set at the latest cost price of the item as

reflected on the latest vendor’s invoice. When it becomes apparent that inventory

items cannot be sold for an amount at least equal to the invoice value, adjusted

values should be used, based on the judgment of the fund sponsor concerned for

inventory valuation.

Selling Prices of Inventoried Items

Pricing should consider change transactions and rounding to a convenient

sales figure, as well as local competition. Inventory items, which are deemed not

saleable at the normal price due to age, damage, shopworn condition, unsuitability,

etc., should be disposed of (1) by return to the vendor for credit, if possible, (2) by a

reduced sales price, or (3) as ultimately determined by the principal.

Inventory Security

Substantial losses to school activity funds can occur due to losses of saleable

inventory. Inventory security can best be obtained by rapid turnover of merchandise

and limiting inventory to minimal amounts during the time the school is closed.

Access to stored inventory inhibits charging anyone with the responsibility for the

merchandise and generally results in no security at all.

Stored Inventory should be checked against the Inventory Report at the beginning

of the school year. Any losses attributed to pilferage should result in steps being

taken to further secure access to the inventory.

38

Chart of Accounts for Category C Accounts

C3000.00 Academic Boosters

C3005.00 Academic Coke

C3010.00 American Heart Association

C3013.00 American Red Cross

C3015.00 Assignment Books

C3020.00 Athletics

C3020.01 Athletics Coach

C3020.02 Athletics Equipment – General

C3020.03 Athletics Field Maintenance

C3020.04 Athletics Gate Receipts

C3020.05 Athletics Officials

C3020.06 Athletics Physicals

C3020.07 Athletics Season Passes

C3020.08 Athletics Security

C3020.09 Athletics Student Recognition

C3020.10 Athletics Train/Medical

C3020.11 Athletics - Sweats

C3020.12 Athletics Programs

C3020.13 Athletics Fundraiser

C3030.00 Athletics Baseball

C3030.01 Baseball Equipment

C3030.02 Baseball Fund Raising

C3030.03 Baseball Misc

C3030.04 Baseball Spirit Packs

C3030.05 Baseball Transport/meals

C3030.06 Baseball Uniforms

C3035.00 Athletic Basketball Boys

C3035.01 Boys Basketball Equipment

C3035.02 Boys Basketball Fund Raising

C3035.03 Boys Basketball Misc

C3035.04 Boys Basketball Spirit Packs

C3035.05 Boys Basketball Transport/meals

C3035.06 Boys Basketball Uniforms

C3040.00 Athletic Basketball Girls

C3040.01 Girls Basketball Equipment

C3040.02 Girls Basketball Fund Raising

C3040.03 Girls Basketball Misc

C3040.04 Girls Basketball Spirit Packs

39

C Accounts continued

C3040.05 Girls Basketball Transport/meals

C3040.06 Girls Basketball Uniforms

C3050.00 Athletic Boosters

C3050.01 Athletic Boosters Donations

C3055.00 Athletics Cross Country

C3055.01 CC Equipment

C3055.02 CC Fund Raising

C3055.03 CC Misc

C3055.04 CC Spirit Packs

C3055.05 CC Transport/meals

C3055.06 CC Uniforms

C3080.00 Athletics Concession

C3085.00 Athletics Crew

C3085.01 Crew Equipment

C3085.02 Crew Fund Raising

C3085.03 Crew Misc

C3085.04 Crew Spirit Packs

C3085.05 Crew Transport/meals

C3085.06 Crew Uniforms

C3100.00 Athletics Field Hockey

C3100.01 Field Hockey Equipment

C3100.02 Field Hockey Fund Raising

C3100.03 Field Hockey Misc

C3100.04 Field Hockey Spirit Packs

C3100.05 Field Hockey Transport/meals

C3100.06 Field Hockey Uniforms

C3110.00 Athletics Football

C3110.01 Football Equipment

C3110.02 Football Fund Raising

C3110.03 Football Misc

C3110.04 Football Spirit Packs

C3110.05 Football Transport/meals

C3110.06 Football Uniforms

C3120.00 Athletics Golf

C3120.01 Golf Equipment

C3120.02 Golf Fund Raising

C3120.03 Golf Misc

C3120.04 Golf Spirit Packs

40


C3120.05 Golf Transport/meals

C3120.06 Golf Uniforms

C3125.00 Athletics Gymnastics

C3125.01 Gymnastics Equipment

C3125.02 Gymnastics Fund Raising

C3125.03 Gymnastics Misc

C3125.04 Gymnastics Spirit Packs

C3125.05 Gymnastics Transport/meals

C3125.06 Gymnastics Uniforms

C3130.00 Athletics Lacrosse Boys

C3130.01 Lacrosse Boys Equipment

C3130.02 Lacrosse Boys Fund Raising

C3130.03 Lacrosse Boys Misc

C3130.04 Lacrosse Boys Spirit Packs

C3130.05 Lacrosse Boys Transport/meals

C3130.06 Lacrosse Boys Uniforms

C3135.00 Athletics Lacrosse Girls

C3135.01 Lacrosse Girls Equipment

C3135.02 Lacrosse Girls Fund Raising

C3135.03 Lacrosse Girls Misc

C3135.04 Lacrosse Girls Spirit Packs

C3135.05 Lacrosse Girls Transport/meals

C3135.06 Lacrosse Girls Uniforms

C3175.00 Athletics Soccer Boys

C3175.01 Boys Soccer Equipment

C3175.02 Boys Soccer Fund Raising

C3175.03 Boys Soccer Misc

C3175.04 Boys Soccer Spirit Packs

C3175.05 Boys Soccer Transport/meals

C3175.06 Boys Soccer Uniforms

C3180.00 Athletics Soccer Girls

C3180.01 Girls Soccer Equipment

C3180.02 Girls Soccer Fund Raising

C3180.03 Girls Soccer Misc

C3180.04 Girls Soccer Spirit Packs

C3180.05 Girls Soccer Transport/meals

C3180.06 Girls Soccer Uniforms

C3190.00 Athletics Softball

41


C3190.01 Softball Equipment

C3190.02 Softball Fund Raising

C3190.03 Softball Misc

C3190.04 Softball Spirit Packs

C3190.05 Softball Transport/meals

C3190.06 Softball Uniforms

C3215.00 Athletics Swimming

C3215.01 Swimming Equipment

C3215.02 Swimming Fund Raising

C3215.03 Swimming Misc

C3215.04 Swimming Spirit Packs

C3215.05 Swimming Transport/meals

C3215.06 Swimming Uniforms

C3225.00 Athletics Tennis Boys

C3225.01 Tennis Boys Equipment

C3225.02 Tennis Boys Fund Raising

C3225.03 Tennis Boys Misc

C3225.04 Tennis Boys Spirit Packs

C3225.05 Tennis Boys Transport/meals

C3225.06 Tennis Boys Uniforms

C3230.00 Athletics Tennis Girls

C3230.01 Tennis Girls Equipment

C3230.02 Tennis Girls Fund Raising

C3230.03 Tennis Girls Misc

C3230.04 Tennis Girls Spirit Packs

C3230.05 Tennis Girls Transport/meals

C3230.06 Tennis Girls Uniforms

C3235.00 Athletics Track , Indoor, Outdoor

C3235.01 Track, Indoor, Outdoor Equipment

C3235.02 Track, Indoor, Outdoor Fund Raising

C3235.03 Track, Indoor, Outdoor Misc

C3235.04 Track, Indoor, Outdoor Spirit Packs

C3235.05 Track, Indoor, Outdoor Transport/meals

C3235.06 Track, Indoor, Outdoor Uniforms

C3245.00 Athletics VHSL

C3245.01 Athletics VHSL District Events

C3245.02 Athletics VHSL Regional

C3245.03 Athletics VHSL State

42


C3250.00 Athletics Volleyball

C3250.01 Volleyball Equipment

C3250.02 Volleyball Fund Raising

C3250.03 Volleyball Misc

C3250.04 Volleyball Spirit Packs

C3250.05 Volleyball Transport/meals

C3250.06 Volleyball Uniforms

C3255.00 Athletics Wrestling

C3255.01 Wrestling Equipment

C3255.02 Wrestling Fund Raising

C3255.03 Wrestling Misc

C3255.04 Wrestling Spirit Packs

C3255.05 Wrestling Transport/meals

C3255.06 Wrestling Uniforms

C3260.00 Auto Body Coke

C3265.00 Auto Body Snack

C3270.00 Bake Sale General

C3275.00 Band Coke

C3280.00 Band Snack

C3285.00 Bazaar

C3290.00 Book Fair

C3295.00 Book It

C3300.00 Book Reading

C3305.00 Candy & Gifts

C3310.00 Candy Fund Raiser

C3315.00 Cap & Gown Commission

C3320.00 Cheer Boosters

C3325.00 Christmas Care Kids

C3330.00 Citizenship Project

C3335.00 COE Banquet

C3337.00 Commercial Advertising

C3340.00 Cool Talent Show

C3345.00 Craft Show

C3350.00 Dance United

C3355.00 Elevator Keys

C3360.00 Entertainment Book Sale

C3365.00 Equipment

C3370.00 Fruit FFA

43


C3375.00 Fundraiser

C3380.00 Fundraiser Worlds Finest

C3385.00 Fundraiser

C3390.00 Gift Sales

C3395.00 Gift wrap Fundraiser

C3400.00 Golf Tournament

C3405.00 Grade Fundraiser

C3410.00 Graduating Class Funds

C3411.00 Graphics Lab

C3415.00 Gym Locks

C3420.00 Gym Suits

C3425.00 Homework Hotline

C3430.00 Hoops Festival

C3435.00 Ice Cream Social

C3440.00 Incentives

C3442.00 Intramural archery

C3450.00 Jump Rope

C3455.00 Jump Rope for Heart

C3457.00 Kids Art Showcase

C3460.00 Laundry

C3462.00 Leukemia and Lymphoma Society

C3465.00 Literary Events

C3470.00 Literary Magazine

C3475.00 Magazine Sales

C3480.00 Magazine Sales Fundraiser

C3485.00 Math Fundraiser

C3490.00 Spirit Night

C3495.00 MDA Practiceathon

C3500.00 MS Activity Account

C3505.00 Multi Fund Raiser

C3510.00 Music Band Boosters

C3515.00 Music Band Sale

C3520.00 Music Choral Boosters

C3530.00 Music Fundraiser

C3535.00 Music Snack

C3540.00 Music Strings Boosters

C3545.00 Musical

C3550.00 Newspaper

44


C3555.00 Pictures

C3560.00 Senior Portraits

C3561.00 Pedometers

C3570.00 Popcorn

C3575.00 Poster Sales

C3580.00 Prom

C3585.00 PTA

C3590.00 Read a thon

C3600.00 Recorders

C3605.00 Relay for Life

C3606.00 Autism Awareness Walk

C3610.00 Rings

C3615.00 SCO

C3620.00 SAC High School

C3625.00 SAC Middle School

C3630.00 Safety Patrol Ponchos

C3635.00 SCA (Student Co-op Association)

C3640.00 SCA Activities

C3645.00 SCA Bake Sales

C3650.00 SCA Coins

C3655.00 SCA Coke

C3660.00 SCA Dance

C3665.00 SCA Playground

C3670.00 SCA Shoe Fund

C3675.00 SCA T-Shirts

C3680.00 SCA Walkathon

C3685.00 School Fundraiser

C3690.00 School Store

C3700.00 Serve

C3703.00 Spelling Bee Fund raiser

C3705.00 Spirit Wear

C3710.00 Spring Fundraiser

C3712.00 St. Judes

C3713.00 Children's Hospital

C3715.00 Student Awards

C3720.00 Student Vending Machines

C3735.00 Student Snacks

C3736.00 Summer Camp Multi-Sport

45


C3737.00 Summer Camp Baseball

C3738.00 Summer Camp Orchestra

C3739.00 Summer Camp Chorus

C3740.00 Summer Camp Basketball

C3741.00 Summer Camp Drama

C3742.00 Summer Camp Model UN

C3743.00 Summer Camp Soccer

C3743.00 Summer Camp Photography

C3744.00 Summer Camp Computer

C3745.00 Summer Camp Track & Field

C3746.00 Summer Camp Sewing

C3747.00 Summer Camp Cooking

C3748.00 Summer Camp Ceramics

C3749.00 Summer Camp Art

C3750.00 Summer Camp Volleyball

C3751.00 Summer Camp Drawing & Painting

C3752.00 Summer Camp Robotics

C3753.00 Summer Camp Archery

C3754.00 Summer Camp Ukulele

C3755.00 Summer School Concessions

C3760.00 Sweatshirts

C3765.00 T-Shirt Sales

C3770.00 Technology Ed Fundraiser

C3775.00 Tornado Relief /Natural Disaster

C3780.00 Uniforms

C3785.00 United Way Contributions

C3800.00 Writers

C3805.00 Winter Fund Raiser

C3810.00 Yearbook

C3815.00 Yearbook

C3820.00 Yearbook

46

Gym Locks C3415

Revenue is derived from the rental of locks for gym lockers, or for the

payment from the loss of locks that has been purchased through site-based money.

At the end of the fiscal year, the funds are to be forwarded to the Department of

Financial Services along with a Form EB1 (Expense Budget Transfer) to increase

the budget for unit 1030 (Physical Education). Use either object 4550 for

replacement equipment or 4510 for additional equipment.

School Store C3690

General

The purpose of the school store is to provide a convenience to the students

and school staff for the purchase of items associated with the instructional program

of the school and items, which contribute to the development of school spirit.

Additionally, the operation of the school store provides a learning and

responsibility opportunity for the students. Revenues, excluding the change fund,

will be deposited intact with the school bookkeeper daily. Cash from sales will not

be used in lieu of a change fund or to make cash payments.

Merchandise for Sale

Merchandise offerings should be limited in selection and competition with

local businesses should be minimized. Items will be sold directly to the students

from a central point, not held by classroom teachers for sale. Merchandise should

be purchased for sale only if it can reasonably be expected to be sold during the

school year.

Inventory Losses

School store merchandise held in storage during the summer months should

be checked against the End-of Year Inventory Report when the school store opens

at the beginning of the school year. Any losses attributed to pilferage should result

in steps being taken to further secure access to the inventory.

School Store Profits

Unless otherwise established, the suggested school store profit margin should

be established at 25% but not to exceed 50% of the cost of goods sold. Profit in this

sense applies to gross sales and not to each individual item sold. Pricing of

individual items should be based upon considerations of local competition and

rounding to a convenient sale price. This range should not be construed as

establishing a minimum profit margin when the school store is operated as a service

to the students.

47

Category “D”- School Operation Accounts

Definition

These are accounts, which contain funds to be expended for the benefit of the

entire student body and are used for the general operation of the school.

Revenue

Revenue generally comes from an allocation of revenue from a category “C”

account, a self-supporting activity, or an outside source.


Expenditure/transfer authority rests with the school bookkeeper subject to the

approval of the principal.

Account Balance

An account in this category may hold a temporary deficit balance, but should

end the school year with a positive balance.

Termination


established, the balance will be disposed of by returning the funds to the original

source, when practical, or to an account as directed by the principal.

48

Chart of Accounts for Category D Accounts

D4000.00 Admin Honor Reception

D4005.00 Admin Hospitality

D4010.00 Administration

D4015.00 Building Use- Local

D4020.00 Bank Fees

D4030.00 Certificates






D4060.00 Change Fund

D4065.00 Clothes Closet

D4070.00 Community Builders

D4075.00 Computer Furniture Equipment

D4080.00 Conference

D4085.00 Copy Machines

D4090.00 Donations

D4095.00 Donations

D4100.00 Donations

D4105.00 Donations

D4110.00 Donations

D4115.00 Donations Computer Equipment Supplies

D4120.00 Donations Field Trip

D4125.00 Donations General

D4130.00 Donations PTA

D4135.00 Donations PTA Playground

D4140.00 Donations PTA Fund

D4145.00 Donations Safety

D4150.00 Donations Vision Screener

D4155.00 Enrichment Clubs (Elementary)





D4170.00 Fees for Bad Checks

D4175.00 Gift of Knowledge

D4180.00 Grade Banquet

49

D Accounts continued

D4185.00 Graduation

D4190.00 Grants- General

D4195.00 Hotline

D4200.00 Instructional Supplies

D4205.00 Interest Revenue

D4210.00 Material Supplies Home

D4215.00 Memorial Fund







D4250.00 Newsletter- Parent

D4260.00 Parent Clearing

D4265.00 PE Equipment

D4270.00 Postage

D4275.00 Principal Discretion

D4280.00 Printing

D4285.00 PTO

D4290.00 Read Instead of TV

D4295.00 Recognition Account

D4300.00 Recycle Ink

D4310.00 Savings Bond

D4315.00 SCA Savings Account

D4320.00 Scholarship






D4350.00 School Assemblies

D4355.00 School Beautification

D4360.00 School Office

D4365.00 School Savings Bond

D4367.00 School Dedication

D4370.00 Snack

D4375.00 Speakers

50

D Accounts continued

D4380.00 Special Olympics

D4385.00 Start Up

D4390.00 Student Activities

D4395.00 Student Mentoring

D4400.00 Student Needs

D4405.00 Student Reserve

D4410.00 Summer School Expense

D4425.00 Transcripts

D4430.00 Trust Funds





D4455.00 Unobligated Funds

D4460.00 Volunteer Tea

D4465.00 Wages to Policeman

Building Use- Local D4015

Funding of this account is derived from 25% of the BUILDING RENTAL

fees only which have been deposited to the Category E-Building Use Account

(E5005). (Personnel and equipment fees are not included) See building rental

section of Community Use of Schools Worksheet.

These funds are intended as a revenue source for other accounts. No portion

of this money will be transferred to faculty accounts or used for social purposes (i.e.

flowers, gifts, etc.) for the staff. In addition, no direct expenditures will be made

from this account; funds will be transferred to other accounts as needed.

Cash Management Revenue D4020

These funds are derived from interest received from Savings/Money Market

Bank Accounts.

Funds in this account may be used to defray the cost of bank service charges.

Principals may transfer funds to other accounts as desired for expenditure. A limit

of 25% of the interest earned may be transferred to a faculty account on a monthly

or yearly basis. When a principal allocates interest to a faculty account, the

allocation and subsequent transfers will only pertain to the interest earned during

51

the school’s current fiscal year. No funds will be disbursed from this account.

Change Fund Account D4060

Change funds may be established to provide money for change making

operations when necessary. The amounts should be limited to the minimum that

will serve the change making need. Change funds will be issued to the individual

responsible for proper safeguard and timely return of the funds and will be recorded

in this account. The responsible individual will be held liable for loss or failure to

return money issued for change operations. Change funds will be returned intact

and re-deposited to the checking account as soon as the need for the fund has

passed. Change funds will not be used for making disbursements.

In some cases, there may be a need which continues throughout most or all the

school year. However, there should be no change fund in existence at the end of

the school year.

Operating Procedures

1. To open a change fund an order is placed through the armored car service or

your bank and posted to an account titled “Change Fund.” Since the account

has a zero balance prior to issuing change, the normal account balance will be

a negative amount.

2. When the need for a given change fund has passed, the money will be

receipted back to the “Change Fund” account. A receipt to the individual who

has held responsible for the particular change fund will be issued.

Copy Machines D4085

Funds for this account are derived from coin-operated copy machines.

Only expenses pertaining to the operation of the copy machine may be disbursed

from this account. Profits earned must be transferred to another account for

disbursement.

Interest Revenue D4205

These funds are derived from interest received from an interest-bearing

checking account. Funds in this account may be used to defray the cost of bank

service charges. Principals may transfer funds to other accounts as desired for

expenditure. A limit of 25% of the interest earned may be transferred to a faculty

account on a monthly or yearly basis. When a principal allocated interest to a

faculty account, the allocation and subsequent transfers will only pertain to the

52

interest earned during the school’s current fiscal year. No funds will be disbursed

from this account.

Sales Tax D4305

Revenue from this account is derived from the transfer of Virginia State sales

tax from other activity accounts. These taxes were assessed for items purchased

and/or sold, that will become personal property. Virginia state tax is filed on Form

ST7 (Virginia Consumer’s Use Tax Return) and paid quarterly.

VIRGINIA RETAIL SALES AND USE TAX

General

Tangible personal property purchased for student fund raising activities or

from the profit generated is exempt from Virginia Sales and Use Tax. Schools are

authorized to furnish an exemption certificate (ST-12) to their vendors. This

exemption covers all approved student school wide or approved club fund raising

activities, but does not include purchases of items when money is collected from the

student and the item becomes the property of the student (i.e. shoes, recorders,

workbooks, etc.). Sales tax is not to be collected as an overhead expense (similar to

freight) and should be taken into consideration prior to establishing how much to

collect from the student. The following key factors are to be taken into

consideration when establishing the amount to be collected from the student: (1)

cost of item, (2) a portion of the freight per item, (3) 5% tax and (4) rounding to a

convenient amount. A complete listing of non-exempt items cannot be generated;

therefore, schools should feel free to contact the Department of Financial Services

on a case-by-case basis.

The tax does apply to purchase of meals, food items (except Family &

Consumer Sciences class) and lodging regardless of the source of funding and is

considered a purchase that is being consumed by the individual (student/staff) and

not the school system. In addition, the tax does apply to purchases made from

faculty accounts (Cat. F), except equipment (i.e. microwaves, refrigerators).

The Consumer’s Use Tax return (ST-7) will continue to be required on an “as

needed” basis to cover taxable purchases for which no tax has been assessed on the

vendor’s invoice. This form is available from the Department of Financial

Services.

Use of the Certificate of Exemption Form ST-12

The Certificate of Exemption Form (ST-12) is utilized for purchases, from

53

either activity funds or appropriated funds, when the tangible personal property is to

be consumed (used/owned) by the school system. The form requires that section

two (2) be checked and may be signed by the school’s principal, an assistant

principal or the school’s bookkeeper. Please note that no tax-exempt number is

required or even called for, as one has not been issued to the school system.

This exemption certificate is to be provided to vendors as needed or when

paying an invoice on which sales tax has been incorrectly assessed. In the latter

case, deduct the sales tax from the amount due on the invoice and enclose an

exemption certificate with your payment to the vendor.

Scholarships D4320 through D4345

Revenue is derived from donations from individuals and businesses for a

specific college scholarship.

The Guidance Department coordinates the awarding of scholarships.

Disbursements from this account must be made payable directly to the college or

university and should reference the student in a memo section.

School Office D4360

Funding is derived from school-wide fundraiser activities, or from interest

revenue.

In most cases this account will be funded using revenue from fundraisers

(“C” accounts). If the purchase will not benefit the entire student body, a transfer

from interest revenue would be appropriate. Examples would be flowers for

hospitalized students would come from fundraisers and bottled water for

administration area would be funded from interest revenue.

Wages to Policemen D4465

General

Wages paid to police officers for security not related to athletics will be charged to this account.

Methods of Payment

When a school hires off-duty police officers for crowd control, ensure the

officer’s name is on the W9 list, if not a W9 is required to be sent to Department of

Financial Services and set up before paying. A check will be made payable to the

police officers and the school will utilize the Police Information Form to record the

54

necessary information.

Category “E”- Clearing Accounts

Definition

These are clearing accounts used for revenue collection and eventually

transfer to Site Based funds and not to directly procure.

Revenue

Funds in these accounts are generally dedicated for a specific purpose or are

to be forwarded to destinations within the school system.


Expenditure /Transfer Authority rest with the principal or as delegated in

accordance with the purpose of the account.

Account Balance

An account in this category may hold a temporary deficit balance, but should

end the school year with a zero or a positive balance and should be cleared at a

minimum of once a quarter unless otherwise stated in this manual.

Termination

Upon termination of the activity or purpose for which and account was

established, the balance would be forwarded to the appropriate site based account.

55

Chart of Accounts for Category E Accounts

E5000.00 Boxtops for Education

E5005.00 Building Use

E5007.00 Building Use Turf Fields

E5010.00 Drivers Education Fees

E5010.01 Summer Driver Ed

E5012.00 Dual Enrollment

E5015.00 E Scrip (Safeway Giant, Target)

E5020.00 Instrumental Rental

E5021.00 Digital Device Rental

E5025.00 JNROTC Reimbursement

E5030.00 Lost Library Books

E5035.00 Lost Supplies Instruction

E5040.00 Lost Weekly Folders

E5045.00 Parking Permits

E5050.00 Petty Cash

E5055.00 PWCS Payroll Expense Reimbursements

E5060.00 Site Based Reimbursement

E5065.00 Site Based Payment

E5070.00 Sports Camp

E5075.00 Summer School

E5080.00 Super Fresh Receipts

E5085.00 Telephone/ Fax/ Pagers

E5090.00 Textbooks- Lost/ Damaged

E5095.00 Transportation Bus Activity

E5100.00 Transportation Field Trips

E5105.00 Vandalism Restitution

E5900.00 Bad Checks

Building Use Account E5005

This account will be utilized to record all revenue collected and the

forwarding of the majority of that revenue to the Office of Risk Management as

directed by Community Use Guidelines.

The school’s portion will be transferred to the Building Use- Local Account,

D4015.00 on a monthly basis after the required funds have been forwarded to Risk

Management. Custodial fee revenue is excluded from being transferred to the

Building Use-Local account.

56

Driver Education Fee Account E5010

General

Effective FY11 Road and Range is offered after school. Driver’s education

fee was authorized to be collected from each student taking the road and range

course. The fee amount will be updated as necessary and published in the annual

approved budget book.

The funds collected will be receipted into this account and checks made

payable to PWCS will be forwarded to Student Learning- Health & PE monthly

with a report of the deposits each month.

Recommended Collection Procedures

1. The driver education road coordinator collects the fee (NO CASH) before

they begin road and range instruction and issues a receipt to each student.

The coordinator must complete school deposit slip; list student’s name

(name printed on check if different than student), amount paid, and

receipt number. He must also keep a list of students who have paid.

2. A duplicate receipt will be retained and given to the school’s bookkeeper

along with the funds collected each day.

3. The school’s bookkeeper will receipt these funds to the Driver’s

Education Fee Account and will provide the coordinator a report of each

receipt at end-of-month as well as the processed receipts that includes the

student’s name.

Refund Procedures

1. NO REFUNDS will be issued from the school.

E-Scrip E5015

This account is for checks donated to the schools from Safeway, Target, and

Giant, etc. for the schools. A check will be sent with an EB by the date determined

in the annual End of Year Close out notice.

Instrument Rental E5020

This account is to receipt money collected for the rental of band and

orchestra instruments. Refer to the annual notice for guidelines.

57

Lost Library Book Account E5030

To ensure the revenue collected from lost library book is properly accounted

for and expended on additional or replacement library books, the following

procedures are to be followed:

1. Maintain a Lost Library Book Account for the revenue, refunds, and the

forwarding of the net revenue to the Department of Financial Services. If

your school assesses late fines, you are to include those funds as revenue

in this account.

2. The funds are to be forwarded to the Department of Financial Services

along with a Form EB1 (Expense Budget Transfer). This expense budget

transfer request will increase the appropriated funds (S.B.M.) budget for

library books (object code 4016). If your account balance is less than

$25.00, you may carry the balance forward to the next period. However,

any cash balance in the account will be due in June of any given year.

This account must be cleared at a minimum of once a quarter.

* As directed in the annual End-of-Year Close-Out notice

Parking Permits E5045

The funds for this account are derived from the revenue collected from student

parking fees.

A school check made payable to “Prince William County School Board”

should be written for the full amount collected and forwarded to the Department

of Financial Services along with a Form EB1 (Expense Budget Transfer Request),

the schools portion minus the expense for decals. (See Forms Section) (Example-

you collect $100 per fee, you send the check for

1. $98. The EB shows $48, the school gets $50 minus the $2 decal expense)

This expense budget transfer request will increase the schools

appropriated funds budget codes including the schools reserve code

(8002). This account must be cleared at a minimum of once a quarter.


58

Petty Cash E5050

General

To assist in the efficient and economical day-to-day management of the school

and to alleviate the necessity for writing checks for very small sums of money, petty

cash funds may be established. One petty cash fund per school is authorized.

Responsibility

Petty Cash funds will not be established without the acceptance of the

personal responsibility on the part of the staff member holding petty cash funds.

The absence of such an acceptance of responsibility will serve to prohibit the

establishment of a petty cash fund.

Limitation

A petty cash fund will not exceed $50.00 in value at any time and should be

established at lower level consistent with proven need.

Replenishment

Petty cash funds will be replenished as needed or at least monthly in

accordance with the procedures set forth in this manual.

Petty Cash Disbursement Limitations

Petty cash disbursement should normally be limited to transactions in which

it may be advantageous to avoid writing checks for small amounts.

Operating Procedures

1. To open a petty cash fund, a check is disbursed through an account titled

“Petty Cash Fund.” Since the account has a zero balance prior to issuing

the check, the normal account balance will then be a negative amount.

The check will be issued to the individual who will be held responsible

and accountable for the petty cash fund. A properly executed Check

Requisition will be needed to support the opening of the account and the

proper dollar amount.

2. Petty cash will be replenished at least once a month.

3. When replenishing petty cash, distribute the expenses to the proper

account(s) through internal transfers.

4. The petty cash replenishment will be delivered via armored car services.

5. If money is advanced to a person to make a purchase, the person to whom

the money was given should sign a receipt and return with a proof of

59

purchase receipt.

6. When a person is to be reimbursed, a sales ticket or receipt slip should be

attached to the reimbursement slip as a backup source document. A general

rule is not to pay a claim for reimbursement without the receipt or sales

slip.

7. To close out a petty fund, the cash is simply receipted to the account,

leaving a zero balance.

PWCS Payroll Expense E5055

Revenue for this account is derived from a transfer of salary and FICA

expenses from various activities.

After paying a PWCS employee through the site based account payroll

system, a school check made payable to “Prince William County Schools” should

be written and forwarded to the Department of Financial Services along with a

form EC (Expenditure Credit) as needed. This expenditure credit will decrease the

payroll expense.

At no time should a disbursement for payroll expenses be made directly to an

employee at PWCS through student activity funds.

Procedures for Payment of Wages

General

Except for payments of wages to police officers, all wages are paid through

payroll. This includes, but is not limited to, ticket sellers/takers, chain crews,

custodians, student technicians, parents, etc. Schools are not authorized to issue a

check directly to an individual when the check is for payment of wages.

Schools are reminded that all temporary employees are to be processed

through the Department of Human Resources (DHR) in accordance with DHR’s

guidelines and that an individual cannot be paid until that process is completed.

60

Site Based Reimbursement Account E5060

General

This account is to facilitate a school’s reimbursements for payments to

vendors for purchases that are to be charged back to the school’s appropriated funds

budget (S.B.M.).

Limitations and/or Conditions of the Account

1. The account is limited (overall) to the school’s ability to carry a

temporary deficit balance for approximately one week after the end of any

given month. This is the anticipated time required to process a purchase

order through the Accounts Payable section of the Department of

Financial Services.

2. The only charges that are authorized against this account are ones that will

be reimbursed from the school’s appropriated funds budget (S.B.M.).

3. No travel reimbursements or travel advances are to be paid from this

account. Those types of transactions must continue to be processed in

accordance with Regulation #382.01-1, which deals with employee’s

travel.

Procedures for Processing a Reimbursement Voucher

1. Prepare a Purchase Order with the school as the vendor.

2. Reflect the invoice numbers and the associated dollar amounts on the

Purchase Order (PD).

3. Attach a copy of the school’s original Check Requisition.

4. Attach a copy of the invoice to the Purchase Order (PD). (Retain the

original at the school.).

5. Place the appropriate fund codes on the Purchase Order.

61

Reimbursement for Travel Expenses from Activity Funds

The Travel Reimbursement Regulation (#382.01-1) governs all employee

travel regardless of the source of funding. Refer to the regulation with regards to

travel that is funded from school activity funds and submit the Travel Voucher

Form to the school’s principal for approval. Once approved by the principal, the

travel voucher will be processed by the school’s bookkeeper and a check issued.

Schools are reminded that (1) reimbursements for meals (staff members) are

authorized only when the employee is on official business, (2) mileage is to be

reimbursed at the current county rate per mile or less if agreed upon by the

employee, not based on tank gasoline and (3) Travel Voucher Forms are to be

utilized, not Payment Vouchers.

Textbooks – Lost/Damaged Account E5090

This account is to be utilized to temporarily hold funds collected for lost

and/or damaged textbooks. The funds are to be forwarded to the Department of

Financial Services along with a Form EB1 (Expense Transfer Request). This

expense budget transfer request will increase the school’s appropriated funds

(S.B.M.) budget for textbooks (object code 4011). If your account balance is less

than $25.00, you may carry the balance forward to the next period. However, any

balance in the account will be due in June of any given year. This account must be

cleared at a minimum of once a quarter.


Transportation Field Trips E5100

This account is used when money is collected from students to pay for Prince

William County School transportation only.

Vandalism/Restitution Account E5105

From time to time, funds are collected from students/others for damaging

school property and/or equipment. Schools are to account for these funds through an

account entitled Vandalism / Restitution.

In general, one of the following situations should exist and the school should

process the funds collected accordingly:

Situation 1- money collected, for which the individual school is responsible

for funding the repairs, is to be forwarded to the Department of Financial

Services along with a Form EB1 (Expense Transfer Request). These funds

are to be allocated to the same budget code that was utilized to repair or

62

replace the damaged item. This account must be cleared at a minimum of

once a quarter.


Situation 2- money collected for which a central office department

(Transportation, Facilities Services) is responsible for repairing are to be forwarded

to that department along with a brief memo explaining the reason the money was

collected. All money collected in this situation are to be forwarded to the

respective department within five (5) workdays from collecting the funds.

Bad Check Account E5900

General

The maintenance of bad checks and the related information and

documentation (bank debit memos, etc.) is essential to the overall management of

the cash related to school activity funds.

Schools are expected to attempt collection of bad checks through telephone

calls and at least two letters prior to writing off the bad check uncollectible.

Another way to collect is through a collection agency, please contact Department of

Financial Services to set this up.

Accounting for Bad Checks

All bad checks will be accounted for through the Bad Check Account

(E5900). An adjustment for each bad check will have to be done as soon as

possible after receiving notification (debit memo) from your bank. The collection

or re-deposit of a bad check will be posted as other in-coming cash and deposited

with the other funds for the day.

The following specific entries are to be utilized to account for bad checks:

1. To recognize a bad check, make an adjustment in the receipt column for

the negative amount of the bad check. This adjustment is posted to the

Bad Check Account (E5900) and the school’s Cash Account for deposits.

2. To recognize the collection or re-deposit of a bad check, enter a regular

cash receipt of in-coming cash (NOT AN ADJUSTMENT). This entry will

be posted to the Bad Check Account (E5900).

3. To write off a bad check that is uncollectible, make a transfer to

DECREASE the affected general ledger account and INCREASE the Bad

Check Account (E5900). This transfer will in effect charge the original

account for the expense of a bad check.

63

Category “F” – Faculty Accounts

Definition

These accounts are for the benefit of the faculty members and the

segregation of funds intended for the purpose. Faculty funds are those that faculty

members have contributed to through the purchase of soft drinks, coffee, or snacks.

The term “faculty” is used in the general sense to include teachers and all classified

employees. If there is an activity in this category that refers to a smaller group of

employees, the account name will so specify (i.e. teachers, classified, aides, etc.).

Revenue

Revenue is generated from the following means:

1. Dues

2. Self-supporting sales activity (i.e. Coke/Pepsi)

3. Transfers due to administrative use of concession

4. Up to 10% of net revenue from one (per audit cycle) student fund raising

activity which involved faculty time and manpower, not to exceed the

following amounts: a. $200.00 Elementary Schools

b. $300.00 Middle Schools

c. $500.00 High school

The principal will attach a statement to the Transfers Journal indicating the faculty

involvement justifying the transfer of student generated profits.


Expenditure/transfer authority lies with the fund sponsor, subject to the

approval of the principal.

Account Balance

An account in this category may hold a temporary deficit balance, but must

end the school year with a positive or zero balance.

Termination


established, the balance will be transferred to another account within this category.

64

Chart of Accounts for Category F Accounts

F6000.00 Faculty Benevolence

F6005.00 Faculty Charitable

F6010.00 Faculty Coffee

F6015.00 Faculty Coke

F6020.00 Faculty Conference

F6022.00 Faculty Basketball Game

F6025.00 Faculty Donations

F6030.00 Faculty Fund

F6035.00 Faculty Hospitality

F6040.00 Faculty Memorial



F6055.00 Faculty Pepsi

F6057.00 Faculty Pictures

F6060.00 Faculty PTO

F6065.00 Faculty Retirement

F6070.00 Faculty Snacks

F6073.00 Faculty Spiritwear

F6075.00 Faculty Sunshine

F6080.00 Faculty T’ai Chi Club

F6085.00 Faculty TAR

F6090.00 Faculty Vending Machines

F6095.00 Faculty Water

F6100.00 Faculty Wellness

Note- If a vending machine is operated on a commission basis, the common

check may be receipted directly to the Faculty Fund Account.

Administrative Use of Concessions

From time to time, it is necessary for the school’s principal to provide coffee

and other refreshments during meetings with visiting parents, School Board

members and staff, faculty meetings and various other functions. In order to

properly allow for funding of the refreshments used, it will be necessary to keep a

record of administrative use of coffee, soft drinks, etc. on the Administrative Use of

Concessions Form. This form will serve as the supporting document to allow for

transfers from the School Office account to the coffee and soft drink account(s).

Note- Concessions refer to the use of faculty Coke/ Pepsi and coffee.

65

Faculty Charitable (purchases for needy students) F6005

The following procedures permit the expenditure of faculty generated funds

for charitable purchases on behalf of needy students, but subject to all the

limitations described below.

1. The source of funding must be from a faculty-generated account or from

funds donated expressly for this purpose. The use of any funds that are

generated directly or indirectly by students is not appropriate.

2. The faculty must express its wish that a portion of its funds be expended

for charitable purchases in order to assist needy students.

3. Criteria must be established to determine the circumstances upon which

assistance will be provided.

4. A selection panel of faculty members must be established to review the

individual needs of the student (minimum of 3 individuals), weigh the

student’s needs versus the criteria established for providing assistance and

recommend the appropriate item(s) to be purchased.

5. Under no circumstances may cash or a check be provided to the

individual (needy student).

Faculty Fund F6030

Faculty Funds gets its revenue from the commission of the faculty Pepsi, Coke

and snack vendors. It can be used for the purchases of the faculty needs.

Faculty Sunshine F6075

Faculty Sunshine gets its revenue from the dues collected from staff. It is to be

used on gifts for staff members on special occasions.

66

GIFTS TO SCHOOL STAFF MEMBERS

General

Gifts to school staff members are to be limited to those of a token nature and

are to be paid from revenue generated by the staff (see Cat. F). Gifts exceeding

$75.00 in value will require the written approval or the signature on the school’s

purchase order/payment voucher of the principal’s immediate supervisor.

Gifts, as used herein, refer to flowers and other remembrances for special

occasions, such as retirements, transfers and other extenuating circumstances that

the principal or social committee determines are appropriate.

Items relating to “secretaries’ week” may be funded up to one-half their cost

from the School Office account.

Gifts of an Exceptional Nature

Gifts to any staff member for which funds are raised by other staff members

in a collective fashion and for a specific purpose are an exception to the above

section. Any gift of this nature requires the advanced approval of the school’s Area

Associate Superintendent.

Gifts to any staff member for which funds are raised by the students in a

collective fashion and for a specific purpose are an exception to the above section.

Such an activity may help instill in the students a sense of thoughtfulness and

responsibility and provide a means of expressing their appreciation. Any gift

contemplated under the provision of this paragraph requires the advanced approval

of the school’s Area Associate Superintendent. Requests are to be submitted in

writing to the school’s Area Associate Superintendent from the school’s principal

through the Director of Financial Services.

Bonuses

Bonuses are not to be paid from school activity funds. Any bonuses or

supplemental pay is to be done in accordance with the current personnel policies

and regulations and is to be funded through the school’s appropriated funds budget.

67

OPENING A NEW SCHOOL

The Department of Financial Services will coordinate the opening of the

school’s bank account at a convenient bank with the school’s principal. This will

be done with a minimum deposit and the necessary checks will then be ordered.

The Department of Financial Services will provide the school with the

required computer software accounting system for school activity funds.

DISPOSITION OF FINANCIAL ASSETS WHEN CLOSING A

SCHOOL

General

A school may be closed either permanently or temporarily, i.e., during

renovation. The principal of the school being closed should present a written

proposal to the Superintendent outlining the suggested disposition of the funds.

Approval by the Superintendent will be authority to proceed with the disposition of

school activity fund assets.

Planning

School closings are generally known well in advance. Advance planning

should:

1. Encourage sponsors of club type (Category “A”) activities to utilize

existing fund balances and plan for disposition of expected residual funds.

2. Restrict fundraising activities to short-range needs.

3. Curtail purchases and concentrate on using inventories.

4. Determine who will be responsible for maintaining records after the

school is closed and who will have the signature authority for the bank

account(s).

68

Temporary Closing

As a rule, school activity funds should be retained in the name of the school

being closed if the school is to be reconstituted with a student body within two

years after closing. There must be an individual responsible for closing out the

funds and maintaining custody of residual funds. After liquidation of inventories

and after all accounts receivable has been collected and all obligations paid, the

checking account should be closed and all funds placed in a savings account to

obtain maximum interest. To the extent feasibly, inventories of items held for

resale should be disposed of by sale to other schools. Inventory which is not

subject to deterioration and which is not readily disposable (e.g., notebooks with the

school name) may be boxed, labeled, and stored.

Permanent Closing

As a rule, residual funds should be distributed to schools receiving students

based on the number of students going to each such school. Inventories of items

held for resale should, to the extent feasible be sold to other schools or returned to

the vendor for credit. Items remaining may be given to other schools or disposed of

in accordance with instructions of the Superintendent. After liquidation of

inventories, the principal will ensure that all accounts receivable have been

collected and all obligations paid. Any savings accounts will be closed and

balances deposited in the checking account. The checking account should then be

closed by drawing checks to dispose of residual funds. When liquidation is

complete, a final audit will be conducted by the Department of Financial Services.

69

AUDITS OF SCHOOL ACTIVITY FUNDS

General

The responsibility for auditing the school’s activity funds resides with the

individual principals or designee and the auditor. The principal or designee will

review the funds to the extent required by this manual and to any further extent

deemed necessary or desirable.

In addition to this section of the Financial Guidelines Manual, authority for

auditing school activity funds is established by School Board Policy #361.01.

Annual Audits

State regulations require that school activity funds be audited annually.

Accordingly, the audits will be conducted by the auditor as soon as possible after

the close of the school’s fiscal year of school activity funds.

Objectives of Annual Audits

The primary objective of the annual audit of the school’s school activity fund

is to determine/assess if the funds are being managed in accordance with the

applicable State Laws and Regulations and local School Board policies and

regulations. Accordingly, the purpose of the audit is to permit the auditor to arrive

at opinion, which will result in advice to the school system’s management and the

principal as to the overall condition of the school’s school activity fund.

Scope of the Annual Audit

The scope of the annual audit will conform generally to the recommended

criteria established by the Government Accounting Standards. The scope may

include the following:

1. Assessing the adequacy of internal control and physical safeguards for

school activity funds.

2. Reviewing compliance with policies and regulations established by the

School Board, as well as procedures established internally including FGM

and Procurement Guidelines.

70

3. Examine the validity and propriety of financial transactions in view of

the purposes of the various funds.

4. Evaluate management practices in the administration of the

school activity funds.

5. Reconciling the receipts with the bank deposits.

6. Reconciling the balance on the school’s books to the cash

balance in the school’s bank account(s).

7. Conducting such other audit tests as are deemed appropriate or

necessary in a given circumstance.

8. Confirming bank balances.

Reports of Annual Audits

Reports of annual audits will be published as soon as possible after

completion of the audit, setting forth of the financial condition of the school’s

school activity funds, a narrative discussion of the audit findings and

recommendations in regard to corrective action. All items appearing in the report

will be discussed with the principal at an exit conference after completion of the

audit work. A copy of the audit report will be forwarded to the Superintendent, the

appropriate Associate Superintendents of Elementary, Middle and High Schools,

the Associate Superintendent for Finance and Support Services, the Director of

Financial Services and the school’s principal and to others as deemed appropriate.

Response to Annual Audit Reports

The principal’s response to the annual audit report will be addressed to the

Director of Financial Services channeled through the appropriate Associate

Superintendents. The principal’s response should be forwarded as soon as possible,

but no later than 30 calendar days after receiving the report. The complete audit

report including each principal’s response for his findings will be included on the

Financial Services webpage.

71

Interim Audits

Objective and Scope of Interim Audits

The primary objective of an interim audit is to determine the financial

condition of the school’s school activity funds. Accordingly, the emphasis of an

interim audit, conducted for reasons other than the loss or suspected loss of funds,

will be as outlined in the Annual Audits section of this manual. However, the

auditor will be free to expand the scope of the audit if circumstances warrant.

Interim audits will be conducted upon:

1. The direction of the Superintendent or Area Associate Superintendent.

2. A change of principal during the academic year.

3. A change of school bookkeeper if the principal requests an audit.

4. The loss or suspected loss of funds. (It is incumbent upon the principal

to request an audit in these cases.)

5. The determination by the auditor that an audit is desirable and can be

accomplished in conjunction with or in advance of an annual audit.

6. As deemed necessary by the Internal Auditor.

Reports of Interim Audits

Reports of interim audits will be published as soon as possible after

completion of the audit, setting forth the financial condition of the school’s school

activity funds, a narrative discussion of the audit findings and recommendations in

regard to corrective action. All items appearing in the report will be discussed with

the principal at an exit conference after completion of the audit work. A copy of the

audit report will be forwarded to the Superintendent, the appropriate Associate

Superintendents of Elementary, Middle and High Schools, the Associate

Superintendent for Finance and Support Services, the Director of Financial Services

and the school’s principal and to others as deemed appropriate

Response to Interim Audit Reports

The principal’s response(s) to the interim audit report will be addressed to

the Director of Financial Services and channeled through the appropriate Associate

Superintendents. The principal’s response(s) should be forwarded as soon as

possible, but no later than three calendar days after receiving the report.

Continuation of the School’s Fiscal Year

72

The completion of an interim audit does not relieve the school’s bookkeeper

of the responsibility to keep all the financial records for school activity funds

(current fiscal year) intact and available for audit review during the next annual

audit. The school’s fiscal year for school activity funds will not be changed unless

specifically stated in the Interim Audit Report.

Preparation for Audits

Most of the audit work will be performed at the school; therefore,

preparation for the audit should include a workspace, which is relatively free of

interruption and has adequate lighting, a desk or table, internet access and electrical

outlets suitable for computers and printers. The following records will be required:

1. Please run the following reports for the year ended June 30.

a. Account Analysis Report-Detail

b. Account Analysis Report-Summary

c. Bank reconciliations (including deposits in transit and outstanding check

lists)

d. Adjustment History Report (include approved adjustments with your

records)

e. Check journal/computer check journal for the year

f. Cash receipts journal for the year

g. Deposit report for the year (including deposit slips)

h. Transfer History Report (include approved transfers with your records)

2. All records pertaining to ticket sales and ticket inventories.

3. A physical inventory of the school store, gym suits, yearbooks and

spiritwear. This inventory is to be as of the last day in your school’s audit

period and is to reflect the quantity and cost of the items.

4. Cooperative fundraising activity agreements and the annual income

statement(s).

5. The school’s fundraising activities as required by Regulation #341-1.

6. Gifts to the School System Forms as required by Regulation #423-1.

73

FINANCIAL STATEMENT

General

The school’s monthly Financial Statement encompasses the Analysis Report Summary, Analysis Report Detail, a bank statement reconciliation (with attachments), and copy of bank statement from all accounts (i.e. savings, CDs, money market, etc.). These items are generated from the accounting software. The completed Financial Statement is due in the Department of Financial Services by the tenth (10th) of the following month for the previous month (i.e. the Financial Statement for September is due by October 10th).

The original copy is to be forwarded to the Department of Financial Services

after the school’s principal and school bookkeeper have had the opportunity to

review and sign the Analysis Report Summary, Analysis Report Detail, and bank

statement reconciliations sections. The school is to retain a copy of the completed

Financial Statement.

Analysis Report Summary Section of the Financial Statement

This section of the school’s monthly Financial Statement is generated from

the accounting software package. The Analysis Report Summary is accessed as

follows: (1) Reports, (2) GL Analysis Report, then (3) Analysis Report Summary.

This report is to be printed after the end-of-month close out process has been

completed and is to be printed in account number order with account numbers

included on the report and signed by the principal and bookkeeper.

Bank Statement Reconciliation Section of the Financial Statement

This section of the school’s monthly Financial Statement is generated from

the School Books Accounting Software package. The bank reconciliation is

accessed as follows: (1) Opening Menu, (2) Period End, (3) Bank Reconciliation.

Separate bank reconciliations will be performed for each “cash account” (i.e.

00010, 00020, etc.). The completed bank reconciliation consists of the following

items and are to be included as a part of the Financial Statement:

1. Bank Reconciliation-Proof of Cash

2. Bank Reconciliation- Deposits In-Transit

3. Bank Reconciliation- Outstanding Check List

4. Bank Reconciliation- Transfers and Adjustments

The posting of interest, service charges, deposit errors, encoding errors on canceled

74

checks and/or any other items that affect the school’s cash balance will be

necessary prior to attempting to reconciling the bank statement. These items will

have to be posted as adjustments in the month they occur.

Summary

When properly completed, the Monthly Report section of the Financial

Statement and the Bank Reconciliation section will balance to the same figure.

MAINTAINING SCHOOL ACTIVITY FUND RECORDS

General

The Prince William County School System’s Records Management Manual

governs the overall filing and management of all school records. That manual is to

be referred to for the proper numbering of files, etc.

Specific Records for School Activity Funds

The following items are to be printed and retained at the school and are to be

filed by like item in the same file folder for the school’s audit year/cycle:

1. A copy of the monthly completed Financial Statement

2. Receipt Report

3. Bank Deposit Report

4. Cash Disbursement Report

5. Transfers Journal

6. Adjustments Journal

7. Void Check Report

8. Manual Check Report

The following items are to be retained at the school and are to be filed by like item

in the same file folder for the school’s audit year/cycle. The specific items are:

1. Bank statements

2. Deposit slips

3. Canceled checks, include skipped checks and voided checks 4. Report of Ticket Sales Forms and Ticket Inventory Log

School activity fund records are to be retained in the school building according to

Regulation 292-1, which deals with records retention. The term “year” is the

school’s audit year/cycle.

75

SCHOOLBOOKS ACCOUNTING SOFTWARE

General

Prince William County School Board converted the school activity funds over

to the accounting software, a personal computer based accounting system.

The User’s Reference Manual provided with the software package is a vital

part of the overall financial management and operation of school activity funds.

That manual is intended to be a reference guide for the school bookkeepers with

their day-to-day use of the software package.

Special Bookkeeping Transactions

There are few special bookkeeping transactions that arise from time to time

that are not covered elsewhere in this manual. The following list is an attempt to

point out the most common ones:

1. Deposit/ Posting error 2. Encoding error on checks

3. Posting of interest and service charges

4. Posting the charge for deposit slips

To make the necessary bookkeeping adjustment for any of the above

transactions, the Adjustment button within the accounting package is to be utilized.

The entry should be made in the appropriate column, “Income” or “Expense”,

depending on the nature of the adjustment (i.e. pertain to incoming cash or a

payment) and paying attention to the arithmetic sign (+ or -). Remember that a

minus sign (-) in the expense column is, in effect, a positive number and will

increase the account balance.

Voided Checks

The accounting package provides an option for voiding lost, never cashed,

and improperly written checks. This option is accessed from the Manual/Void

check entry button to complete process. When appropriate, this option allows for

the reactivation of the invoice and the issuance of a new check.

Incorrectly Posted Entry

If an entry is posted to the wrong account, a transfer of funds is to be done by

transferring funds from the incorrect account to the correct account. Do not utilize

the “Void Receipts” option.

76

Backing Up the System

General

The overall procedures for backing up the system are explained in the

accounting software reference manual and should be utilized in conjunction with

the section of this manual.

The school’s bookkeeper is responsible for performing the required system

back up at the end of each day, at the end of each month and at the end of the

school’s fiscal year for school activity funds.

Daily Back Up Procedure

Back the system up at the end of each day utilizing a flash drive or zip drive.

The backup is to be taken off the school premises. This procedure allows for

adequate security of the data should an event occur in the school building or to the

computer hardware. Each disk is to be labeled with the respective day of the week.

The system does not have to be backed up if no entries are made or the system is

not activated on a given day.

Monthly Back Up Procedure

The software package MUST be backed up on the last day of each month just

prior to closing the month. This backup process should be done with a new file

name each month and all monthly back up disks should be kept in as secure a place

as possible. This back up disk, if needed to restore the system, WILL allow you to

access the month’s bookkeeping entries; check the disk to ensure you have data

once you have backed it up.

It is also recommended, but not mandated, that a special monthly backup be

performed AFTER closing a given month, but before entering any of the next

month’s date. This special back up disk, if needed to restore the system, WILL

allow you to access the system as of the first day of the new month. If you exercise

this option, in addition to the mandatory process, a new disk should be used each

month.

End-of-the-year Procedure

Once you have closed all months, backup the program. Make sure you have

all the needed reports. An Audit Selection Report will be generated in the Office of

Financial Services as specified in the auditor letter with the school’s tolerance

amount. Proper year-end backups must be completed as detailed in the Year-End

Procedures Instructions provided by the Office of Financial Services.

77

FORMS SECTION

The following pages encompass a variety of forms utilized in the overall

management of school activity funds. With the exception of the Report of Ticket

Sales Form, these forms may be reproduced either by photo coping the necessary

page or printed from your school’s copy of this manual utilizing the personal

computer version. The Report of Ticket Sales Form is available through the Supply

Services Department and comes in a package of twenty-five (25) sets.

78

Co-Op Activities – Form 1

COOPERATIVE FUNDRAISING ACTIVITY AGREEMENT

(Cooperating Organization Handles All Funds)

This agreement is made on the day of , 20

between the and

School

for the purpose of operating a

Organization

on the following date(s)

Type of Activity

.

The Organization will give the School to be

% or $

expended at the discretion of the School Principal.

Organization School

Tax ID Principal

President Date

Treasurer

Date

79

Co-Op Activities - Form 2

COOPERATIVE FUNDRAISING ACTIVITY AGREEMENT (School Bookkeeper Handles All Funds)

This agreement is made on the day of ,

20 between the and

School

for the purpose of operating a

Organization

on the following date(s) .

Type of Activity

All revenue collected is to be receipted and deposited by the school and all

associated bills are to be paid by the school using the revenue collected from the specified activity.

If expenses exceed revenues, the deficit is the organization’s responsibility and shall be cleared up

within one month following the end of the activity. The net proceeds will be distributed in

accordance with the following statement.

The will retain

School (% or $)

for expenditure as determined by the Principal and the

Organization

will be entitled to . The

(% or $) Organization

will receive its entitlement via school check. The school may transfer its portion once the net

proceeds have been determined.

Organization School

Tax ID Principal

Representative Date

Title

This completed form or a similar financial statement containing at least the

above information is to be filed with the principal annually.

The completion of this form DOES NOT constitute an audit of the organization.

80

ANNUAL INCOME STATEMENT

81

ADMINISTRATIVE USE OF CONCESSIONS FORM

(School Name)

Date Activity Item Quantity Cost

82

POLICE INFORMATION FORM

Payment for services rendered at (School Name)

on . The payment is for services rendered at the (date)

following event: .

Amount

Received

Social Security

Number

Name Printed

Signature

83

TICKET INVENTORY LOG FORM

Color: Number: to

Date

Issued /

Returned

Beginning

Number

Ending

Number

Signature

84

INVENTORY FORM ACCOUNT

DESCRIPTION QUANTITY

(EA./ DOX./BX.)

COST PER

INVOICE

TOTAL

TOTAL: $

85

CERTIFICATION OF SCHOOL HELD BANK ACCOUNTS FORM

I certify that the bank account (*) information listed below is accurate, complete

and that all bank accounts are listed for which I have authority over due to my position as

Principal of School.

I further certify that I have no knowledge of other bank accounts held by any

member(s) of this school’s staff for the use of school activity funds or for funds that should

be classified as school activity funds.

(Signature of Principal) (Date)

Account Number: Name of Bank:

Account Name: Account Type:

Individuals authorized to sign checks:

Type Names: Signatures:





(*) Bank accounts as used here refers to any checking or savings accounts, certificates

of deposit or other investment and trust accounts of any nature.

86

School:













87

Comments:

Certified Correct at end of e

vent

REPORT OF TICKET SALES

School: Event: vs. Date: , 20

TICKETS ISSUED TICKETS RETURNED

Total Amount:

Total Value of Tickets Sold:……………$

Change Fund: ...................................…...$

Total Accountability: ..…………………$

Cash Remitted This Report………….… $

Cash Over (Under): ..…………………..$

Color First

Number

Last

Number

Color First

Number

Last

Number

Number

Sold

Price of

Ticket $

Pre- Event Statement

I received tickets as indicted above and change

in the amount of $ .

Ticket Seller

Sales $

Amount Received $ Change Fund $

Total $

Activity/ Fund Sponsor

CERTIFIED CORRECT AT END OF EVENT

Ticket Seller:

Documents

Financial Guidelines Manual › UserFiles › Servers › Server... · accounting, reporting and record keeping. This manual incorporates, but remains subject to applicable federal