WVDE-OSF

ACCOUNTING PROCEDURES

MANUAL

ACCOUNTING PROCEDURES

MANUAL

presented by:

Office of School FinanceWV Department of Education

WVDE-OSF

PresenterPresenter

Susan Smith, CPA, Coordinator susmith@access.k12.wv.us 304-558-6300 ext 3 The manual can be found online at

http://wvde.state.wv.us/finance/

WVDE-OSF

Accounting RecordsAccounting Records Pre-numbered receipt forms Transaction journal (receipts and

disbursements) Requisitions and pre-numbered purchase

orders Bank checkbook Bank deposit slips Monthly bank reconciliations and financial

statements Annual financial statements

WVDE-OSF

Principal’s ReviewPrincipal’s Review

The principal must review the monthly financial statement and sign it

By reviewing it, he/she can assess the financial situation at the school quickly– Journals are up-to-date and balanced– Cash has been reconciled– The school is not in a deficit situation

WVDE-OSF

ReceiptsReceipts

Pre-numbered receipts MUST be issued for all collections at the time moneys are collected with original provided to individual from whom moneys are received and a copy retained– Original recording of transaction– Protects both individuals– A single receipt with a supporting list may be

used when collecting moneys from a group– Voided receipts – mark void and retain both

copies– Receipts must be posted at least weekly

WVDE-OSF

WVDE-OSF

Vending MachinesVending Machines

Recommendation – let the vendor stock If not, collections are to be receipted

and deposited into school account Prepare a profit/loss statement

periodically (p. 81 & p. 83) Remit consumer sales tax 75% of soft drink sales go to faculty

senate

WVDE-OSF

Gate ReceiptsGate Receipts

Pre-numbered tickets must be used if an admission fee is charged

Two individuals should be used (sell/take up tickets)

Tickets are to be torn in half and one half given back to the patron

Ticket reconciliation reports must be completed for each event

WVDE-OSF

Fund-RaisersFund-Raisers

Receipt and disbursement procedures apply

Profit/Loss Statement must be completed for each fund-raiser

WVDE-OSF

WVDE-OSF

WVDE-OSF

Child Nutrition CollectionsChild Nutrition Collections

Receipt written to each teacher collecting money at the time money is remitted – one for breakfast collections and one for lunch collections

If moneys are collected from parents, write receipt or use cash collection form

Ensure Summary Meal Report matches the collection amounts for each meal

Recommendation - centralized billing

WVDE-OSF

DepositsDeposits

Prepare in duplicate & retain a copy No cash disbursements or personal

checks cashed from collections Must deposit at $500 or weekly Checks must be listed separately Beginning and ending receipt

numbers must be shown

WVDE-OSF

Purchase OrdersPurchase Orders

Purchase order must be completed PRIOR to obligation of the funds

Pre-numbered, duplicate Retain a copy No purchases may be made from a fund

or account in excess of funds currently available

Signed by the Principal or designee Does not need to be the exact amount of

the purchase

WVDE-OSF

DisbursementsDisbursements

All disbursements must be made by check

All disbursements must be supported by an invoice or travel expense report

All checks require two signatures Never pre-sign a blank check

WVDE-OSF

Personal ServicesPersonal Services

All payments to individuals must be made through payroll process

UNLESS clearly shown an independent contractor

ONLY exception is athletic officials Report all payments for personal

services to central board office each year for 1099 reporting

WVDE-OSF

Other CashOther Cash Petty Cash

– Maximum is $50– Don’t cash personal checks– Receipts + cash must always equal the total

amount authorized– Replenish by a check made out to the principal

Starting Cash– Maximum is $500– Don’t cash personal checks– Amount of cash must always equal the total

authorized– Deposit back into bank when not used

WVDE-OSF

Authorized ExpendituresAuthorized Expenditures

All moneys are considered to be quasi-public funds and are to be expended for the benefit of the students at the school

WVDE-OSF

Unauthorized ExpendituresUnauthorized Expenditures

Contributions to charitable organizations are prohibited unless a fund-raiser is conducted specifically for that purpose

Purchase of food and drink for meetings

Purchase of service awards for employees

WVDE-OSF

Authorized/UnauthorizedAuthorized/Unauthorized

Appendix C provides a list of expenditures specifically authorized or unauthorized by the State Attorney General opinions or State Superintendent of Schools interpretations

WVDE-OSF

Bank StatementsBank Statements

Principal review the unopened bank statement for irregularities

Reconciliation must be performed as soon as possible

Reconciliation must be signed by preparer and principal

WVDE-OSF

SSAC TournamentsSSAC Tournaments

Deposit all proceeds into the school account

Establish a sub-account to track receipts and disbursements

All payments made for personal services must be through payroll process

WVDE-OSF

School Support OrganizationsSchool Support Organizations Procedures are to be established by each

county board. At a minimum each one:– That collects funds in the name of the

school must be approved by the board in advance

– Must have the approval of the principal for each fund-raiser that is conducted

– Must provide an annual financial statement to the principal

WVDE-OSF

School Support OrganizationsSchool Support Organizations Each is to have its own business

registration certificate and FEIN– Be officially organized with a set of

published by-laws– Prepare and make available written

minutes of each meeting– Maintain a transaction journal of all

receipts and disbursements– Establish proper accounting

procedures

WVDE-OSF

School Support OrganizationsSchool Support Organizations

If an organization does not wish to obtain it’s own FEIN, funds may be deposited into the school’s bank account

Follow all school purchasing procedures

Including unallowed expenditures

WVDE-OSF

School Support OrganizationsSchool Support Organizations

Boards have the authority to examine the financial records of all disbursements of all funds, including the operation of concession stands, fund raisers and gate collections

WVDE-OSF

Faculty SenateFaculty Senate

Each teacher is entitled to a $50 allotment– Check or allocation– Sales tax is allowed– No purchase orders required

Additional monies up to a total of $200 could be allotted to each teacher. Amounts above the $50:– Allocation method only– No sales tax can be paid– Approved purchase order prior to obligating the

funds is required– Monies not expended by year end go back into

faculty senate pool

WVDE-OSF

Faculty Senate (continued)Faculty Senate (continued)

A budget must be adopted (see sample form)

Individual balances could be restored from end of prior year with majority vote

Faculty senate checks must be signed by faculty senate designee and principal (or his designee)

Allotments for teachers who transfer stay with the original faculty senate

Monthly bank reconciliations and financial statements are required

WVDE-OSF

County PoliciesCounty Policies

BOE must include in local policy:– Number of funds to be maintained at

the schools– Whether high schools may sell soft

drinks during school hours (except at meal service times)

– Whether schools may obtain a purchasing card

– Whether schools may have petty cash, and the maximum amount (up to $50)

WVDE-OSF

County Policies (continued)County Policies (continued)

– Maximum amount of starting cash authorized for gate collections (up to $500)

– Procedures by which school support organizations are to operate

County or school may establish procedures for:– Concession sales– Vending machines

WVDE-OSF

RecommendationsRecommendations

Use a computerized accounting system– More efficient– Reduces chance for error– Standardizes the accounting function

at all schools Vending machines stocked by vendor Disallow the payment for merchandise at

time of delivery Centralized billing for Child Nutrition

Program

WVDE-OSF

QuestionsQuestions