|Policies and Procedures Handbook||
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Last Updated: 6/22/2005
Garrett County Board of Education
40 South Second Street
Oakland, MD 21550
FINANCIAL OPERATIONS PROCEDURES FOR PARENT-TEACHER ASSOCIATIONS, BOOSTER GROUPS AND OTHER SCHOOL SUPPORT ORGANIZATIONS
Each organization should maintain a checking and/or savings account. The account should contain the name of the organization and the organizationís Federal Employer Identification Number (FEIN).
All checks should have pre-printed on them the name of the organization, the name of the school, the organizationís address and the check number.
Bank statements should be mailed to an individual other than the Treasurer. Monthly bank reconciliations should be completed by a designated individual other than the Treasurer of the organization.
A transaction (receipts and disbursements) journal should be maintained to record all receipts and disbursements. Each posting should include the following: the date of the transaction; receipt or check number listed in numeric order, name of payer or payee; and individual account(s) for which the collection or disbursement was made.
The transaction journal should be footed and cross-footed each month to ensure that errors have not been made. The entries in each column are added to arrive at a total and the totals of each column are added across to arrive at the grand total for the month. If errors are found to exist, they must be identified and corrected as soon as possible, using correcting journal entries. Proper accounting procedures dictate that errors should not be written over or corrected with correcting fluid. The necessary journal entries should be made and should include a brief explanation of why the adjusting entries were made.
Annual Financial Statements
Annual financial statements are to be prepared by each school support organization and a copy is to be provided to the school principal. They should be prepared on either a fiscal year basis of July 1 through June 30 or in accordance with the organizationís fiscal year, and are to include all financial activities of the organization for the year for which prepared.
At a minimum, the financial statements should list the organizationís cash balance at the beginning of the year, revenues collected during the year, expenditures paid during the year, and the cash balance at the end of the year. If any sub-accounts are maintained by the organization, they should be listed separately.
The financial statements are to be signed by the preparer and the organizationís president. In addition to the annual financial statements, a list should be prepared which lists all invoices that have not been paid at the end of the year and all revenues, if any, that have not been received.
Review of Financial Records
Each organization should conduct an annual review of their records. Such review may be conducted by an audit committee appointed by the organization or by an independent accountant. Such review shall include compliance with Garrett County Board of Education policy and procedures. A short narrative is to be prepared, and a copy is to be provided to the school principal.
The Board of Education has the authority to examine the financial records of any parent teacher association, booster group or other school support organization collecting money in the name of a school, or to require the organization to provide the county board with financial statements that have been examined by an independent accountant. If the services of an independent accountant are required by the Board of Education, the Board shall assume the cost.
The financial records shall be examined to assure compliance with the provisions of the policies and procedures of the county school board.
All financial records, minute books and other documents maintained by or in the name of a school organization belong to the organization and must be delivered or handed over to the duly elected president of the organization, or to the county superintendent of schools, upon request.
Copies of the organizationís annual financial statements and minute books are to be retained permanently. The transaction journal, bank statements, and cancelled checks are to be retained for at least five (5) years. All other financial records are to be retained for at least three (3) years.
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Business Affairs 726.631 ELF