Policies and Procedures Handbook
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Last Updated: 1/21/2010
Garrett County Board of Education
40 South Second Street
Oakland, MD 21550
(301)334-8900

SCHOOL ACTIVITY FUNDS

Administrative Procedure 

The accounting practices and procedures prescribed in this procedure represent minimum requirements for the operation of School Activity Funds in each school 

1.         Transaction Journal

A transaction (receipts and disbursements) journal is to be maintained for each fund established at a school to record all receipts and disbursements of each fund.  A cash control/balance column must be maintained to reflect the cash balance available at any time in each fund. 

2.         Bank Accounts

Each school must maintain a bank account.  Bank signature cards for individuals that have signature authority of local bank account must be maintained current at all times.  All such agreements shall require two signatures on checks.

3.         Receipts

All funds collected must be deposited intact in a bank depository account.  Receipts must be indicated or attached to bank deposits

4.         Disbursements

All disbursements must be made by check.  Checks are not to be made payable to cash.  If starting cash is needed for an event from which to make change, the check must be payable to the individual who will be cashing the check. 

a.         Itemized Claim for Payment

Schools are not permitted to expend any funds unless an itemized claim (invoice) for payment is filed by the claimant.  If the claim is for services rendered by an independent contractor, the invoice must identify the kind of service, the date performed, the person performing the service and the amount due.   If the claim is for materials, equipment or supplies, the invoice must identify in detail the vendor, the items provided, the quantity, the date provided, to whom provided, and the amount due.  Schools are exempt from the payment of consumer sales tax on all purchases of good and services and shall not pay or reimburse for sales tax.

b.         Reimbursement of Travel Expenses

(1)        Employees

Schools may reimburse employees for all reasonable and necessary travel expenses actually incurred in the performance of their official duties upon presentation of an itemized statement signed by the employee and approved by the principal.  Such reimbursements, however, are subject to the policies, procedures, and limitations prescribed by the county board of education.

(2)        Schools

Schools may also pay reasonable and necessary travel expenses actually incurred by the students on trips authorized by the principal or designee.  Such payments are to be supported by an itemized statement which lists the date and purpose of the trip, the names of all students and chaperones on the trip and the amounts paid.  If funds are paid to students in order that they may pay their own expenses, each studentís signature is to be obtained as verification of receipt of the funds.  If payment is made directly to a vendor, such as to a motel or restaurant, receipts must be obtained to support the disbursement.

5.         Payment for Personal Services

All payments made by a school to an individual for services rendered are to be considered wages and are to be paid through the normal payroll process at the central office, unless it can be clearly shown that the individual is an independent contractor in accordance with the criteria established by the Internal Revenue Service. 

6.         Reconciliation of Bank Statements

All bank statements are to be presented to the school principal unopened as soon as they are received through the mail.  The principal is to open the envelopes and review the bank statements for any possible irregularities, such as checks made to cash or unauthorized individuals.  After this review the bank statements and canceled checks or images of the canceled checks shall be forwarded to the individual who will be preparing the bank reconciliations.  Every bank account must be reconciled monthly as soon as possible after the bank statements are received. 

7.         Gate Receipts

Pre-numbered tickets are to be used at any school event where an admission fee is charged or a donation is accepted for admittance.  As tickets are collected from patrons, they should be torn in half; one-half should be returned to the individual and the other half should be retained.  A ticket reconciliation report must be prepared for each event to reconcile tickets sold to cash collected.  The report must show the following:  beginning cash balance; first and last numbers of each type of ticket sold (student, adult, other); total number of tickets sold by type; price of each type of ticket; total sales; ending cash balance; total cash in cash box; and differences, if any.  In addition, total sales from tickets sold prior to the event must be shown.  The reconciliation report must also show the activity and date, and must be signed by the preparer and the principal, assistant principal, or athletic director. 

8.         Fund Raisers

All proceeds from fund raisers conducted by a school are to be deposited intact.  Merchandise purchased for resale is to be purchased by checks issued for that purpose.  The purchase invoices are to be retained as supporting documentation for the disbursements.  A profit and loss statement must be prepared for each fund raising activity conducted by a school that shows gross proceeds, cost of goods sold and net proceeds.  When items are sold, the Fund Raising Inventory Reconciliation Form must also be completed.  

            Individual Ticket Seller's Report

            Composite Ticket Sales Report

            Fund Raiser Profit/(Loss) Statement

            Fund Raiser Inventory Reconciliation Form

 


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Business Affairs 726.641
Adopted 1/12/2010