KAMEHAMEHA SCHOOLS Finance and Facilities Group Controller Division Changes to the Student Activities Accounting Proc

1. KAMEHAMEHA SCHOOLSFinance and Facilities GroupController DivisionChanges to the Student Activities Accounting Procedures Reference KS Policy 520.30(A) and 520.30(B)

2. With the start of the new school year, we have modified procedures to ensure our compliance with KS Policy 520.30A&B and managements response to the KS Audit Committee and Internal Audit. • The check requests process has been modified to require approval of all requests by the Club Advisor, the Club Advisor’s Department Head (NA for non-curriculum requests), and the respective Student Activities Coordinator or Dean of Student Activities. • As the individual creating the check request, the Club Advisor is responsible for obtaining proper documentation for each expense. The Club Advisor confirms the nature of the KS expense, completeness of documentation, and accuracy of the accounting expense code. • The Department Head approval confirms the nature and purpose of the KS expense, available resource, and compliance with KS policy. • The check request must then acquire a 2nd approval by the Student Activities Coordinator or Dean of Student Activities. • Once complete, please allow 4-5 business days for check request to process.  Please keep in mind that during school breaks authorized signers are at a minimum, so please anticipate providing longer lead time to process. • Non-curriculum clubs without a Department Head will forward the check request directly to the SAC after the Club Advisor signs.

3. Improve the timeliness of monthly reporting: • Group reports will now be distributed via email by group (Athletics, Elementary, High School, Middle School, etc.) • Timely reports will improve Club Advisors ability to make financially responsible decisions and safeguard the Club’s funds. • The reports will be a summarized financial statement only. Detailed transactions can be obtained upon request.

4. Check Requests – Payments for Business Related Expenses • The IRS requires reimbursements to be reported within a reasonable period of time, which is defined as no later than 60 calendar days after the date of the expense. Late submissions may only be reimbursed with the approval of the CEO or ELT Member, as applicable. • All submissions exceeding 60 calendar days after the date of the expenditure willalways be considered taxable income to the employee and will be reported on their annual Form W-2 and the proper tax withholdings will be deducted from their paycheck. • The individual is ultimately responsible for providing the preparer with the appropriate information to complete the form (date of purchase, vendor name, itemized list and unit price of purchased items, and the total amount) and review/approve the completed form confirming the accuracy of all information. • All participants covered by an expense should be identified along with their title and business connection (i.e. meals, events, travel) • The business purpose must be documented on the receipt and/or expense report.

5. Documentation may be submitted electronically using scanned copies or via e-receipts from the vendor or in original form. (If documents are submitted electronically they should be retained by the individual for a period of one year from the date of purchase) • If itemized receipt is not available then an approved Expense Validation form must be submitted. • Entertainment expenses for personal celebrations that will not be reimbursed include: Retirements, Birthdays, or Farewells • Makana/Gifts must have legitimate business purpose.

6. Prohibited Expenses: • Electronics • Computers • Equipment • Alcoholic beverages • Payment to KS Staff for services rendered (see KS policy for complete list)

7. Honorariums • An honorarium is a one-time payment made to an individual (who is not a Kamehameha Schools staff member) for a special and non-recurring activity or event for which a fee is not legally or traditionally required or charged. The intent is to show appreciation for participation in a KS educational activity or event. • An honorarium is provided as a token of appreciation for participation in a KS activity or event, and not as a contractual obligation to pay for services rendered. • If a vendor expects payment, the vendor should submit an invoice.

8. Cash Advances and Travel Related Expenses • The traveler should request reimbursement within 10 business days of the conclusion of the trip (60 day rule applies) • The traveler is responsible for obtaining approval for travel through Orbitz for Business or Request for Travel Authorization (RTA) form prior to incurring any expenses. • The Orbitz itinerary or approved RTA form should be included with all travel related submissions for expense reimbursement and travel advances. • Travelers should make interisland travel arrangements through Hawaiian Airlines Corporate. • Travel Insurance should not be purchased. Travelers will not be reimbursed for this expense.

9. Deposits • Personal Identifiable Information (PII)- State law which calls for the proper handling of an individual’s name in connection with a social security number, driver’s license number, Hawaii ID number, account numbers, access codes, or passwords.  Checks are considered PII. A breach may result in fines for KS and criminal charges for KS staff members. • Checks should be made payable to Kamehameha Schools. Your club name may be included thereafter, on the memo line, or at the top right corner near the check number. This is to ensure timely notification in case the bank returns the check (NSF). • Deposits may be made to my office, the Cashiers’ Office (Admin Bldg, 3rd floor), or the Admin Bldg 1st floor drop box (Ewa Staircase). Please DO NOT send deposits via campus mail. • General Excise tax will be automatically paid on all income generated from Fundraisers and Concessions. Student Activities Accountant will calculate the total and issue payment on behalf of the Clubs. • Expenses are not to be paid from the Fundraiser/Concession cash box; all income generated must be deposited into the Club’s Student Activities account. Expenses must be paid via the Check Request process.

10. Cash Advances • Cash advance will immediately be reflected in your available balance. • Cash advance settlements (receipts, invoices, remaining money) must be made within 10 days after the event’s conclusion. (60 day rule applies) • Cash Advance for International Travel must provide currency exchange receipts when converting US$ to the foreign currency and again when converting foreign currency back to US$.