USFR Auxiliary Operations: The Basics

1. USFR Auxiliary Operations:The Basics Presented By Cris Cable and Elizabeth Whitaker August 28, 2012

2. Outline • What’s Included in Auxiliary Operations? • Importance of Controls for Auxiliary Operations • Cash Receipt Process • Expenditure Process • Questions

3. Auxiliary Operations Includes: Monies raised with the approval of the school district governing board in connection with the school bookstore, athletic activities and miscellaneous district operations.

4. Auxiliary Operations Examples Vending Rentals Bookstore Fees Deposits Gate Receipts

5. Auxiliary Operations & Tax Credit Tax credit monies paid or donated for extracurricular activities and charter education May also include:

6. Auxiliary Operations Does NOT Include: • Donations (other than Tax Credit) • Raffles • PTOs and Booster Clubs • Student Activities

7. Auxiliary Operations vs. Student Activities Auxiliary Operations Student Activities Public Money- Belongs to the District Student Money- Belongs to the Student Clubs

8. Joint Fundraisers • Decide roles before sales • Determine % allocation • Document agreement Proceeds can be allocated to Auxiliary Operations and Student Activity Club(s)

9. Separation of Duties 3 Key Duties Authorization Recordkeeping Cash-handling

10. Documenting Cash Collections • Cash Register • Receipt Book/Form • Tickets Athletic Ticket Sales Report Daily Sales Report

11. Change Fund(s) • Funded by check from AO bank account • Can be established for each school, as necessary • Cannot be used to make payments! • Money returned/accounted for after each use • Money reclassified in records From - Cash in Bank (0102) To - Cash on Hand (0101)

12. Bookstore ManagerBefore Sales Cash Register Sales Issues Receipt Book or Tickets Issues Change Fund

13. Cashier/Ticket SellerBefore and During Sales Verifies Change Fund Signs for Change Fund Conducts and Documents Sales

14. Cashier/Ticket SellerAfter the sales Counts all Cash Returns all cash and Receipt book, if used Completes cash count on Sales Report

15. Bookstore ManagerAfter the Sales Counts and verifies all Cash Investigates Cash Over/Short Determines Total Sales Completes Reconciliation of Sales to Collections on Sales Report

16. Bookstore ManagerSafeguards Monies

18. FB Adlt 12100 12300 12205 12100 105 2.50 262.50

19. Summary of Daily Collections Vending Machine Sales Donations in Front Office Bookstore Sales Athletic Ticket Sales

20. 101 Bookstore 350 102 Athletics – FB Game 200 103 Yearbook 150 700

21. Deposit Process Prepares and Makes Deposit Reviews Deposit & Reports then Records in Accounting Records

22. Expenditures Centralized at District or Processed at Each Campus?

23. Expenditure Process • Requisition • Authorization • Procurement • Ordering • Receiving • Verification • Payment

24. AO Revolving Fund(s) • Funded by the AO Fund • Governing Board may establish 1 for each school • Account Custodian • Maintained on an imprest basis • Account is replenished periodically and @ June 30 • Simplified processing

25. Revolving Account Example Authorized amount $800 Checks written from account this month - 425 Bank Service Charge - 10 End Balance = 365 Replenishment = $435

26. Requisition/Authorization Prepares Requisition Reviews Requisition

27. Procurement/Ordering • Procurement: • Check for Contract • Purchase <$5,000 • Like Item purchases • Document Quotes

28. Receiving/Verification/Payment Received at School Office Binders Given to Bookstore Documents to Account Custodian

29. Governing Board Approval Before Payment Or By Ratification

31. Questions www.azauditor.gov (602) 553-0333 asd@azauditor.gov