Activity Fund Training Section 5 – Business Office Reference Guide

1. Activity Fund TrainingSection 5 – Business Office Reference Guide Miranda MacDonald

2. Purpose of Activity Funds • To promote the general welfare, education and morale of the student body • To account for the financial operations of school sponsored student organizations • Teachers or an administrator must be appointed to all activity accounts

3. Definition • Campus Activity Fund – Fund 192 • Funds raised at the campus • Used to promote the welfare of the school • Educational program that duplicates, supports or enriches the mission of the District General Fund. • Must be budgeted • Are subject to the overall direction of the Board in accordance with TEA’s Financial Accounting and Reporting module

4. Definition • Student Activity Fund – Fund 865 • Agency funds received and held in trust by the District for student organizations or clubs • To be expended in accordance with direction from the officers of the organization • Resources are accumulated from school-approved fund-raising activities • Funds generated shall be disbursed only for that organization

5. Responsibility for Activity Funds • Principal is responsible for: • proper collection of school activity monies • disbursement of school activity monies • control of all school activity monies • Responsibility includes: • Provide safekeeping of monies • Proper accounting and administration of fund transactions • Expenditure of funds in compliance will regulatory agencies • Adequate training and supervision of all personnel designated to administer activity funds

6. Audit • Activity funds may be audited or reviewed by: • Internal auditor • Finance Office staff • Documents collected from: • Cashier or Secretary • Activity fund sponsor • Retention of Records: • Up to seven prior years

7. Cash Handling Overview

8. Maintain a positive cash balance in the account • In MUNIS negative is positive

9. All money collected will be counted • Dual control – 2 people • Sponsor and student officer • Sponsor and Cashier/Secretary • All money will be recorded with proper documentation • Tools provided by IISD: • Miscellaneous Cash Collection Form • Tabulation of Monies Collected Form • Receipt Books • Do you have to use these? • No – Just make sure there is documentation supporting your claim

10. Cash must be turned into the office daily • Do not lock the money in your classroom • Do not send a student or other person to deliver the money to the office • Figure out the Cashier’s/Secretary’s schedule • Cash must be turned into the office in the same form in which is was received • A personal check cannot be substituted for the cash collected • Post dated checks shall not be accepted by the school • Driver’s license and phone number should be obtained for the person signing the check

11. Do not pay for expenditures with un-deposited money • Money collected after business hours must be counted, recorded and deposited in campus safe

12. Returned Checks • Checksmart handles the District’s insufficient fund checks • NSF fee is $32.48 per check • Attempts collection for 60 days after which it will be prepared for prosecution • Account is debited the amount of the returned check • Verify cash balance to make sure you are not negative

13. A spreadsheet of activity will be maintained for all student activity club accounts • Beginning Balance as of Sept 1 • Deposits = Credits • Expenditures = Debits • Description • Provide a description of what’s being deposited • Do not put “Cash Receipts Journal” • Adjustments = General Journal Entries • Don’t use adjustments column • Enter adjustment as debit or credit • Spreadsheets must be reconciled and turned into the Accounting Supervisor for review • Failure to submit a reconciled spreadsheet will result in account becoming inactive • No activity can take place

15. All sponsor records must be kept by the sponsor and be available for audit for a period of 7 years • What records do I keep? • Receipts received from the cashier • Copy for the form turned into the cashier • Verify forms match receipts • Copies of invoices – original is with AP • Copies of Purchase Orders • Copies of fund raising applications • Minutes of the organization’s meetings • Financial reports for the organization • Obtained from the secretary/cashier • Should be reviewed at least every 6 weeks • Roster of Club Officers • SPREADSHEET

16. All purchases made by the activity club must: • Have an original student signature turned in to AP • Be made by approved district payments • District check • Cash Advance • Travel Advance • Approved by principal in advance

17. All fund raising activities: • Must be approved in advance by the principal • Require a fund raising form to be filled out before the activity begins • At the completion of fund raising: • Complete the Fundraiser Reconciliation Recap • Submit recap to Cashier/Secretary for verification • Within 1 month • Items purchased for resale • Keep accurate records: • Inventory • Distribution Lists – yearbook, t-shirt presales, etc • Daily collections and deposits

18. If sponsor leaves the school/district or is no longer the sponsor: • Turn in all records to the VP in charge of fundraising • If no records are maintained/turned in • MUNIS balance is correct

19. IISD is a Dr Pepper district • Other products will not be reimbursed • Obtain product list from Cashier/Secretary • Business Office Reference Guide Section 7

20. Purchasing • Campus Activity Fund – Fund 192 • Must use Approved Vendor • http://www.irvingisd.net/purchasing/vendorslist.htm • Not on list? Contact Purchasing • Student Activity Fund – Fund 865 • Use of approved Vendor not required • Requires an original student officer signature

21. Time Line • Purchase Order • One week • Cashier receives request till a Purchase Order is printed at the campus • Cut a check • Due in the Business Office by 4pm Monday • Check will be distributed on Friday • Travel or Cash Advance require 2 weeks • Each campus has deadlines

22. Travel with Students • Requires approval by Assistant Superintendent of Teaching & Learning • 4 weeks before travel • Use of student club funds requires students to be traveling

23. Sales Tax • Items purchased by a public school for the school’s own use qualify for an exemption from sales tax if the items purchased relate to the education process • Does not mean all items purchased by the school district are sales tax exempt • Items purchased that become the personal property of the student, employee, parent, etc are taxable

24. Tax Exempt Sales • Food products, including candy and soft drinks, which are: • Sold or served during the regular school day • Sold by a person under 19 who is a member of an organization devoted to education • Student club memberships • Car wash • Parking permits

25. Taxable Sales • T-shirts • School-purchased supplies sold directly to students • Yearbooks • Football programs • School Rings • Books sold to students at book fair

26. One-Day Tax-Free Sales • 2 one-day, tax-free sales • Per calendar year (January to December) • Each campus • Each student club account • Noted on fund raising form

27. Contact Info • Miranda MacDonald • mmacdonald@irvingisd.net • 5407 • Available for meetings to review accounts • Go through your Cashier/Secretary