Student Activity Fund Procedures

Student Activity Fund Procedures

1. A= ccount Codes and Titles=

Each account in the Student Activity Fund shall be assigned a permanent account number by the Business Office. When a new account is created, the Busines= s Office should be given the account title and a description of the purpose of the account. Any questions as to whether or not an account should be classifi= ed as a Student Activity Account or a Campus Activity account will be determ= ined by the rules in the state accounting manual.

= 2. Responsibility of Club Sponsors

The sponsor of each school club is required to maintain adequate financial records of all cash received by the club for fees, dues, fund-raising, activities, etc. All cash collections received by the club must be docume= nted by the use of receipts, a tabulation sheet, or a cash collection form. All collections must be deposited in the proper fund. Sponsors are responsible for reconciling their records to the amount deposited. <= /o:p>

= 3. Banking Procedures

The district has various student and campus activity accounts, which are in t= he district=3Ds depository bank. The balance of individual club and campus accounts will be kept by the individual sponsor and sent to the Business Manager monthly. All bank statements will be received, reviewed and initiated by the Business Manager monthly. All mon= ies received by the activity accounts must be deposited into these accounts a= nd all disbursements must be made via a properly authorized check drawn on t= his account. All activity account checks will be signed by the individual spo= nsor and campus principal.

<= b>4. Receipt of Activity Fund Monies

All cash and checks shall be receipted by the school secretary or the clerk designated by the principal. Receipts must be issued in numerical order a= nd must show the date, the amount received, the source of the funds (dues, c= andy sales, etc.), the activity fund account number, the person submitting the money, and the signature of the party issuing the receipt. Receipts= can only be issued in one name for one account. The receipt should be issued to the person submitting the money. All monies submitted by a teac= her or sponsor should be accompanied by a tabulation of the monies collected.= The total of this form must agree with the monies submitted. If at all possib= le, an actual cash count should be made by the person issuing the receipt in = the presence of the person turning in the money. If the count cannot be made immediately, the monies should be placed in a locked bag until such time = that both individuals can be present for cash verification. If there is a discrepancy in the actual cash count and the total on the sponsor<= span style=3D'font-family:"WP TypographicSymbols"'>=3Ds tabulation sheet, it should be recounted. If the cou= nts still do not agree, it shall be the responsibility of the sponsor and the secretary or clerk to locate the error.

The student activity account number should be written in the upper left corne= r of all checks included in that receipt. Postdated checks should not be accep= ted for any reason. If a mistake is made in completing a receipt, the original must be attached to all carbons and marked AVOID.@ Voided receipts should be kept in numerical sequence.

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5. D= eposit of Funds

Bank deposits should be made as often as possible. Procedures for preparing deposits are as follows:

1. All checks must be stamped with the district=3Ds Activity Fund stamp.

2. For each deposit, a Deposit Summary should be completed, which includes: =

a. date of deposit

b. A list of checks by maker and amount

c. A recap of the deposit by total of checks, coin and currency <= /span>

d. A notation of the cash receipt numbers issued in support of the deposit <= o:p>

3. All cash receipts should be deposited in numerical sequence in the same m= onth the receipt is issued.

4. A deposit must be made on the last working day of the month consisting of= all remaining receipts dated in that month.

5. Deposits will be taken to the bank daily, if possible. All deposits recei= ved by noon will be taken to the bank that day. Deposits received after that = time will be made the next business day.

6. In the event the bank discovers a discrepancy between the district= =3Ds total deposit and their total, every effort will be = made to locate the error and adjust the total accordingly. If the overage or shortage is not identifiable, the general fund activity account will be adjusted to eliminate the discrepancy.

<= b>6. Expenditures from Activity Funds

All expenditures from activity funds will be made by check, with the exceptio= n of petty cash expenditures. NO EXPENDITURES SHOULD EVER BE MADE USING UNDEPOSITED CASH! In order for a check to be generated, the school sh= ould complete a Student Activity Fund Check Request. Information to be include= d on the Check Request is as follows:

1. Payee name (if an individual, include Social Security number) =

2. Payee address

3. Purpose of expenditure

4. Amount of check

5. Student Activity Fund account number

6. Authorizations (signature of student officer, sponsor, principal and busi= ness manager)

No sales tax should be paid to any vendor. If the request is to reimbu= rse an individual who has paid sales tax, the sales tax portion will not be reimbursed. The principal should determine the availability of fu= nds in the account before approving the request. All check requests must have proper documentation attached. Proper documentation includes: =

1. An original invoice. A monthly statement is not acceptable.

2. Other documentation, such as letters, registration forms, renewal notices= , etc., when invoices are not issued by the vendor.

3. A statement by the individual requesting payment. The statement must prov= ide a description of the services rendered or materials delivered, the amount requested, and the signature of the requester. Social Security numbers and mailing addresses must be included on the statement.

= &= nbsp; On= ce the check request has been approved by the principal and business manager= , a check with proper signatures will be issued.

UNDER NO CIRCUMSTANCES WILL A BLANK CHECK BE ISSUED.= If a purchase is to be made and = the dollar amount cannot be determined exactly, the school should either esti= mate the cost and submit a request or have an employee make the purchase and reimburse him/her once the exact dollar amount is determined. If the check for an estimated amount is for more than the eventual purchase price, the resulting change should be redeposited into t= he originating Student Activity Account.

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7. Returned Checks =

Occasionally a check which was previously deposited is returned by the bank unpaid. Wh= en a check is returned, the bank charges the Activity Fund=3Ds checking account and mails the debit memo along with= the returned check back to the district. Adjustments will need to be made to = the accounts if the bank charges a fee and if the check is unable to be redeposited or is returned a second time. In order = to reconcile with the bank, adjustments should be made in the same month as = the debit memos are dated. The entries required are a negative receipt in the amount of the check, and, if applicable, a disbursement in the amount of = the bank fee. Later, when the check and any returned check fee are collected, they will be receipted and deposited in the bank on a separate deposit sl= ip. If the returned check clears the bank when redeposit= ed, and the bank charged a fee the first time it failed to clear, and the fee= is collected from the maker C those funds will also be receipt= ed and deposited on a separate deposit slip.

P= rocedures for collection of returned checks are as follows:

1. The Business Office will notify the school, who should determine the pers= on (teacher or sponsor) who originally took receipt of the returned check. <= o:p>

2. The school will notify the sponsor/teacher of the returned check and info= rm them that the check will be redeposited at on= ce. It is the responsibility of the sponsor or teacher to notify the maker and request payment of the bank fee if one was charged.

3. If the check is returned a second time or it is determined that the check cannot be redeposited, the maker should be contacted immediately. If the parent cannot be reached, a note may be sent home with the student requesting the parent to contact the school. The ch= eck should only be redeemed for cash, a money order, or a cashier=3Ds check. The amount collected should include any applicable service charges.

4. If the maker cannot be reached by the means above, or if the check is not redeemed within ten working days, the school should contact the Business Office. The Activity Fund Coordinator will write a letter to the maker requesting payment.

5. If the payer fails to respond within ten working days of the letter, a certified letter will be mailed notifying the maker that failure to redeem the returned check will result in prosecution.

6. If the maker does not respond to the certified letter, the returned check will be turned over to the Justice of the Peace.

7. The school should maintain a record of returned checks and the dispositio= n of each.

<= b>8. Petty Cash

The purpose of petty cash is to provide funds to make cash purchases of small amounts, not to exceed $25.00 per purchase. Petty cash may not exceed $100.00. Schools need not maintain petty cash; each principal should determine the particular requirements of their school on an individual ba= sis. Under no circumstances should checks be cashed out of Petty Cash! =

Petty cash advances require completion of a Petty Cash Voucher form, which shou= ld be placed in the cash box in exchange for the cash. Upon completion of th= e purchase, receipts and/or cash equaling the advance must be returned to the cash bo= x. The receipts should be attached to the relevant petty cash voucher. An employee will not be reimbursed for sales tax on purchases using petty ca= sh.

Petty cash funds are imprest funds: that is,= the total of paid bills (Petty Cash Vouchers with attached receipts) plus act= ual cash must always equal the total authorized amount of the fund. The fund should be reimbursed as the cash remaining depletes below a comfortable l= evel as determined by the amount of activity in the account.

Reimbursement to petty cash may be from several sources, depending on the type of expenditure B<= /span> the General Fund, or the Student Activity Fund. When requesting reimbursement, a separate check request mu= st be prepared for each applicable fund. Petty cash vouchers and receipts are the supporting documentation for any check request.

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sold by a person under 18 years of ag= e who is a member of an organization devoted to the exclusive purpose of educat= ion, and groups associated with public or private elementary or secondary scho= ols as a part of a fund-raising drive sponsored by the organization for its exclusive use.

$ = ; &n= bsp; School-sponsored tri= ps; however, the school must contract and pay for the travel expenses (motel/hotel, restaurant, etc.) and provide the establishment with an exemption certificate. Individual members of athletic teams, bands, etc.,= may not claim exemption from the sales tax on their travel expenses incurred during the trip.

$ = ; &n= bsp; Magazine subscriptio= ns, if the subscription is for more than six months and utilizes second-class ma= il.

9. Donations <= /o:p>

Donations to the district may be either tangible items or money. Donation of monies should be accompanied by a letter with the donation specifying the amount= and intended purpose of the gift. Donated monies will be used whenever possib= le for the purposes set forth by the donor. When no purpose is specified, the principal will use them to benefit the largest possible number of student= s. Donations should be provisionally accepted by the principal and forwarded= to the Business Office. The Business Office will include all donations in the Board agenda for acceptance by the Board at one of its regular meetings. =

Donations of tangible items may also be accepted by the district; however, the procedures are somewhat different. Donations of item(s) other than fixed assets may be accepted by the principal and reported to the Business Offi= ce via memo. The memo should identify the donor, the do= nee, a brief description of the item(s) donated and the estimated value. Donat= ion of fixed assets (furniture and/or equipment) should not be provisionally accepted by the principal; rather, these items should be reported to the Business Office and/or the Superintendent. They will evaluate the advisability of accepting the gift, considering possible installation cos= ts, upkeep, and ongoing costs associated with the gift. If, after evaluation,= it is decided to present the gift to the Board for acceptance, the principal will be notified. If any questions concerning donations arise, the Busine= ss Office should be consulted prior to taking any action with regard to the donation.

10. Fund-Raisers

All fund-raisers by school organizations must be approved in advance by the principal of each school. The person in charge of the organization must complete a ARequest to Conduct a Fund-Raiser@ form and send it to the principa= l for approval. All information must be completed on the form, including date(s= ) of the sale, item(s) to be sold, projected profits, and a determination of whether the item(s) are taxable. No fund-raiser may be held without the approval of the Principal.

11. Vending Machines=

Vending machines may be placed in the district=3Ds schools, subject to the restric= tions in this section. The profits from these machines will be deposited into t= he appropriate activity account and used for the benefit of the group(s) generating the revenue. The principal shall determine the distribution of= the benefits generated by vending machines; however, care should be taken to insure

All soft drink and food vending machines shall be vendor-serviced; that is, t= he company shall be responsible for stocking the machines, collecting revenu= e, and distributing the profits to the various campuses. The district has an exclusive contract for soft drink machines with the Made-Rite Company. The principal, subject to USDA guidelines, shall approve the number and locat= ion of soft drink and food vending machines within the school building. No so= ft drink or food vending machines may be operated in violation of the United States Department of Agriculture guidelines governing the school lunch program.

Vending machines other than soft drink or food machines may be placed in building= s, but are subject to prior approval by the Superintendent or his/her design= ee. These machines may be either vendor-serviced or school-serviced. If the machines are school-serviced, care should be taken to ensure that the mon= ey is received and deposited according to district procedures, and that the money is not allowed to accumulate beyond a reasonable amount before it is removed from the machine and deposited.

12. Taxable and Tax-Exempt Sales

All items purchased by a public school for the school=3Ds own use qualify for an exemption from sales tax if t= he items purchased relate to the educational process. The school district or= its authorized agent should provide the seller a tax exemption certificate. T= o be valid, the certificate must state that the merchandise being purchased is= for the organizations own use in providing education,= is being made in the name of the organization, and that payment shall be made from the organization=3Ds own funds. The school district = will not reimburse employees for sales tax they incur on purchases made on beh= alf of the district.

Purchases made by individuals for their own use, even though connected with a schoo= l or school organization, are not tax-exempt. For example, cheerleaders purcha= sing their own uniforms, teachers purchasing computer equipment, band members purchasing their own instruments, and athletes purchasing their own letter jackets are not tax-exempt.

Public schools and school-related organizations are not required to collect sales tax on the following categories of purchases:

$ = ; &n= bsp; * Fees and admission tickets, if the event is for educational purposes

$ = ; &n= bsp; * Student club memberships

$ = ; &n= bsp; * Sales of food and/or soft drinks = that are:

sold or served during the regular school d= ay, such as vending machine profits

sold or served by a parent-teacher association during a fund-raising sale, the proceeds of which do not benefit an individual, e.g. PTA carnival sales <= o:p>