Bookkeepers Manual

2. Bookkeepers Manual

3. Areas for Review • Internal Controls • Purchasing Policies & Purchase Orders • Receipts • Checks • Cash Advances • Paying Employees • Paying Students • Contracted Services • Trust Accounts • Deposits • Money Collected Forms • Bank Balance • Bank Reconciliation • Transfer Vs. Adjustment • End of Month Procedures • End of Year Procedures • Principals Report • Fundraising & Events • Day Care

4. Internal Controls • Internal controls are the checks and balances within the school that ensure maximum compliance with School Board Policy and Red Book procedures. • Examples include: Two signatures on checks, having principal sign all checks, using money collected forms, etc. • Internal controls are created by following: • State and Board rules and regulations • General accounting principals • Other rules and recommendations made by district finance personnel to ensure that there is: • Separation of duties • Checks and balances • Adherence to established policies and procedures 1

5. Purchasing Policies & Purchase Orders • Policies: • 3 Quotes are required on purchase of any single item of equipment between $1000 - $4500 • Documentation of quotations received shall be submitted with the purchase order • Equipment Purchase over $4500 should be made through purchasing department • Any equipment purchase over $1000 must be capitalized • Items over $1000 must also be included on board property records • Procedures: • Purchase order created • Purchase order approved • Order placed • Order delivered or serviced rendered • Invoice/Receipt received and approved for payment • Payment Made • FAQ: • When should I issue a purchase order? • FIRST!! • When should Pos be dated? • The day they are entered, should be before order is placed, before invoice is received and before check is written. • Purchase orders should NEVER be backdated. • What purchases require a PO? • ALL • What if the order is more than the PO? • 10% cushion • What about check requisitions? • Optional, not required. • Who should sign the PO? • Principal and sponsor, Pos over $1000 require Superintendent signature. • Approving Purchase Orders • Principal must sign all Purchase Orders. • Sponsors should also sign POs. • Superintendent must sign all POs for: • Expenditures over $1000 (except trust funds). • Risers, bleachers or equipment involving risks. • Any purchase made from a school board employee. 2

6. Receipts • Place and Receive Order: • Once purchase order is approved, place order. • If amount exceeds PO, issue additional PO if amount exceeds 10% cushion. • When order received, count items. • Match invoice to receive list. • Have invoice approved for payment. • Paying Invoices: • ALL checks to individuals MUST be supported by complete, appropriate, signed documentation. • Can only pay a complete receipt, contract, or invoice. • Mark invoice a s “PAID”. • Do not backdate or post date checks. • What is a “Proper” Receipt? • Printed company name, address, phone number • Date • Description of items purchased • Total cost (NO TAX) • What is not a receipt? • Credit card statements • Itinerary (an itinerary is required for travel in ADDITION to a receipt) • Handwritten notes from the teacher, principal, etc. • Self-generated invoices 3

7. Checks • Checks: • MUST have two signatures • One signature MUST always be Principal or Assistant Principal, the other is bookkeeper or office manager. (Signature card must reflect current authorized signers). • Should always have full documentation – see “Receipts” on previous page • Should always be computer-issued • Should never be for more than the invoice or receipt • Should never be backdated or postdated • Blank checks should never be given out • Check Security: • Choose check stock that copies through with watermark • Account for all skipped and voided checks • Do not sign blank checks • Outstanding checks: • Checks should not be left outstanding over 180 days. • As 180 days nears, try to contact individual if no response, VOID check. • If check is lost or never received fill out the form (see attached), void check and reissue 4

8. Cash Advances When issuing checks for cash advances: • Cash advances should be avoided!! • When a cash advance is unavoidable, it must be fully documented: • Have complete , detailed, signed explanation as to the purpose and use of funds • Like all purchases, cash advances must be documented with a receipt • Any unused portion of the advance must be deposited to the school account promptly • Attach copy of Money Collected Form showing deposit of unused advance to original cash advance check. The deposit plus the receipts must equal the original check amount. • NEVER, EVER use cash to pay anyone 5

9. Paying Employees To pay school board employees for work performed: • Send a check to Finance for the amount needed including benefits. • DO NOT pay school board employees out of internal accounts • DO NOT pay anyone with cash (this includes gratuities) • DO NOT make loans out of school funds • For non-school board employees see contracted services!! 6

10. Paying Students • Use forms provided (see attached) for : • Found textbooks previously lost • Refund of cancelled trips • Refund of school pictures • Can also be used for scholarship payments, but these should also have an invoice from the university showing current enrollment. • 7

11. Contracted Services • When Services are provided by an outside person, a Contract for services is required Before Beginning of Services. • Examples of contracted services: • Deejay • Security Guard for sporting events • Official for sporting events (if paying official directly) • Outside help brought in to perform extra cleaning or similar work • NEVER pay cash to any individual for services performed • Always mark the vendor file for a 1099 • NEVER pay school board employees out of internal funds for work performed • A contract must have: • Use Forms Provided. (See Attachment) • Signature of provider and approver (principal, superintendent and departments involved ) • Social Security number, name , address, phone etc. • Description of work performed • Date and time for work to be performed 8

12. Trust Accounts • Funds collected for a specific, restricted purpose shall be accounted for in a trust account. • Restrictions on trust funds: • No transfers out of trust accounts • No negative balances in trust accounts • Money can be used only for the purpose collected or designated alternative • May include: school rings, graduation caps and gowns, lock deposits, etc. • Do not need superintendent’s signature on Purchase Orders from trust funds. 9

13. DEPOSITS • Deposits should be made DAILY. • Teachers collecting $ should turn in the $ DAILY. Collections for night events should go to a night depository. • $ should not be left in the school overnight. 10

14. Money Collected Form • Money Collected (MC) forms should be PRE-NUMBERED. • MC forms should be SIGNED and DATED by both BOOKKEEPER and DEPOSITOR or SPONSER. • MC forms should not be altered without acknowledgement by both parties. • MC forms should show as much detail as possible about the source of the $ and the purpose for which it was collected. 11

15. Bank Balance • Maximize interest earnings by using interest bearing checking accounts The school principal shall provide for the investment in FDIC insured savings or CDs, or US government securities for funds which are not needed immediately for expenditures. • Minimize service charges 12

16. Bank Reconciliation • Make interest adjustments as needed. The “batch date” cannot be changed, but the “bank date” will need to be the last day of the month you are reconciling. • Reconcile the bank statement by using “Enter and Edit Cleared Check” selection on the bank reconciliation screen. (see the Manatee manual for detailed instructions) • All savings accounts, including SBA, MMDAs, CDs, should be reconciled to the bank statements. This should be done through Manatee reconciliation procedures by specifying a different $ account each time. • Submit reports to Principal for review and signature. 13

17. Transfers vs. Adjustments • Transfers: A loan or gift from one group to another (no cash is involved). All transfers should be signed by sponsor AND principal. • Adjustments: Corrections, which usually involve the cash account. Attach backup documentation to the adjustment. • There should be no transfers out from Trust Accounts because the $ is restricted for use. 14

18. End of Month Procedures • Verify that all postings are complete. • Perform Bank Reconciliation. • Post all interest earned . • Be sure to have two sets of disks ready and plenty of paper in the printer. • Execute the Month-End Macro by selecting “Alt M.” • The computer will make two backups and print several reports. • Print a General Ledger/Monthly Statement for each account's sponsor/teacher. • Do Not print an additional Principal's Monthly Report without rolling up accounts; the report that prints automatically is all that is required. • Submit reports and bank statement to Principal for review and signature. • Submit the signed reports to Finance no later than the 25th of each month 15

19. End of Year Procedures • Perform a reconciliation of your NSF account. • Send in Textbooks Lost/Damaged money to Finance. • Send in Library Books Lost/Damaged money to Finance. • Be sure the Petty Cash is fully reimbursed. • Transfer all interest from checking and SBA, MMDAs and CDs to the General Fund Account. • Make sure there are no negative balances in accounts. • Make sure all Cash Boxes have been returned. • Check that all encumbrances are up to date and cancel any unnecessary purchase orders. • Perform Month-End closing Procedures Option 1 . • Close the year by selecting Maintenance, Utilities, Year-End Closing, and Y for yes. • Make TWO backups, send one to Finance with June Reports by July 25th. 16

20. Principal’s Reports • Must be signed by bookkeeper and principal • Should be sent to Finance by the 25th of following month • For A/P over 60 days, include list. • A/P over 60 days or checks outstanding over 180 days should be researched and resolved. • Variances in bank reconciliation should be explained. 17

21. Fundraising & Events • Fundraising: • See Red Book, Chapter 7, page 8 (attached) • Raffles and other activities of chance shall not be conducted for school related activaties. • Each activity shall be approved by the sponsor and principal. • Each fundraising activity shall be planned to finance a specified objective. • See suggested fundraising form (attached) • Events: • Ticket report should be attached to deposit for substitution of Money Collect Form • Amount of deposit should match # of tickets times price per ticket • Tickets can also be used as receipts to provided backup for parking, food or game booth, etc. • Event Deposits: • Frequently large events, such as dinners, dances or trips require an advance deposit. To write the check for a deposit, a contract for services to be performed is acceptable • When services are completed (after the hotel stay is over, for example) or final payment is made, a FINAL RECEIPT IS NECESSARY. The receipt should indicate the total paid and a copy should be attached to the backup for the check for deposit and the final payment check 18