Student Body Funds Accounting Handbook

Student Body Funds Accounting Handbook Jefferson County School District 509J Madras, Oregon Effective July 1, 2015

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Table of Contents SECTION ONE DEFINITIONS PRINCIPLES ACCOUNTABILITY USE OF STUDENT BODY FUNDS SECTION TWO RECEIPTS Page # o Definitions 9 o Use of Bank Accounts 9 Changing Authorized Check Signatures 9 o Principles 10 o Accountability 11 o Appropriate Use of Student Body Funds 12 o Receipts 15 o Receipting Student Purchases 16 o Receipting for General Operation Fund Activities 16 o Fundraising Guidelines 17 o Fundraising by other Organizations 18 o Receipt Process 18 o Bank Deposits 19 o Manual Cash Receipts 20 o Receipt Process Student Store and Concessions 20 o Pay to Play Athletic Fees 21 o Gate Receipts 21 3 P age

o Receipting for Miscellaneous Donations 22 Cash Donation Through third-party websites 23 o Scholarship Funds 23 SECTION THREE DISBURSEMENTS o Disbursement Guidelines 27 o Disbursement Documentation Required 27 o Disbursement Process 28 o Online Purchases 28 o 1099 Reporting 29 o NSF Process 29 o Bank Charges 29 o Collection of Student Debt 30 Written Notice 30 o Donations - Gifts and Gift Certificates 30 o Gift Cards - Disbursement 31 o Donations to Outside Organizations 31 o Credit Cards 32 o Petty Cash Process 33 Petty Cash Process Disbursements 33 Petty Cash Process Reconciliation 33 o Change Funds 34 o Reward Cards 34 4 P age

SECTION FOUR Accounting Coding o Accounting Code Structure 37 SECTION FIVE Month-End Year-End Reporting Bank Reconciliations Audits Record Retention SECTION SIX FAQ s o Adjustments 41 o Student Body Club Transfers 41 o Negative Balances 41 o Turnover of Personnel 41 o Month End Process 41 o Monthly Reporting 42 o Filing 42 o Bank Reconciliations 43 o Stale Date Check Process 43 o Month End Closing Checklist 44 o Year End Closing Process 45 o Audit Preparation 46 o Record Retention Policy 47 o FAQ s 51-56 SECTION SEVEN Oregon Ethic Laws o Ethic Laws 59-61 5 P age

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SECTION ONE DEFINITIONS PRINCIPLES ACCOUNTABILITY AND USE OF STUDENT BODY FUNDS 7 P age

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DEFINITIONS Public Funds are any funds raised or provided by the public to support district operations or satisfy capital obligations. Therefore, Student Body Funds are considered public funds and are subject to school district oversight, management, and accountability. Student Body Funds(SBF) include those funds that are raised or procured by students; raised or provided on behalf of students, schools or programs; or raised from positions held by employees of the district. These funds include, but are not limited to, donations, fundraisers and sales. Third Party Organizations are those organizations that are independent entities with a 501(c)3 IRS status that raise and manage monies separate from the school district, such as PTAs or Booster Clubs. A public official is any individual performing services for a public organization, such as a school district. All school employees are considered public officials. ORS 244.040(1) (a) prohibits public officials from using their positions to obtain financial or personal gain. Actions that are specifically prohibited include accepting gifts, money, discounts, awards, or rebates for services performed, or for purchases made, while in the role or performance of duties as a public official. School sponsored activities are approved by the school's principal, and operate under the guidance or supervision of qualified adults. These activities are designed and intended to provide opportunities for students to participate in such experiences on an individual basis, or in large groups, at school sponsored events. Required Forms are located on the District website under the Business Department. USE OF BANK ACCOUNTS All Student Body Funds are to be deposited and maintained in a federally insured checking account, or in the event where funds temporarily exceed current needs, excess funds may be invested in a federally insured savings account. No bank account is to be opened or closed without the approval of the School District s Chief Financial Officer (CFO). All Student Body Fund revenues are to be deposited into the checking account. Authorized signers should include the Principal, other building administrator, or at least one other building staff member. The Bookkeeper may also be an authorized signer; however, if the Bookkeeper signs checks, he or she cannot also sign the respective purchase orders. 9 P age

CHANGING AUTHORIZED CHECK SIGNERS All checks written from the school checking account require two authorizing signatures. One of the signatures on each check must be that of an administrator (usually the Principal) or his/her designee (in their absence). The second signature is usually the signature of the Bookkeeper/Secretary. Completion of a Signature Amendment Form from the bank is required to add or remove an authorized signature with the bank. Bookkeepers and Secretaries should ensure that this change is made especially for new Principals, Bookkeepers, and Secretaries at the start of each school year. PRINCIPLES Student Body Funds may be raised and spent to promote welfare, education and morale of the respective school district students. Projects financed by Student Body Funds shall generally contribute to the educational experience of students and not conflict with the school district s or individual school s instructional program. Student Body Funds shall be used only for the purposes described in the Student Body Fund Accounting Handbook. Purposes for the use of funds not described in the handbook will need the written approval of the District Business Office. Funds derived from authorized clubs and organizations shall be expended to benefit the specific club or organization which has contributed to the generation, procurement, and accumulation of those funds. (funds raised for the club should be used on club) Funds derived from and obtained by the Student Body as a whole, shall be expended to benefit the Student Body as a whole. These funds shall be represented with the democratic management in which they were raised and procured by the students and shall be expended for their benefit. (funds raised in general should be used in general) Student Body Funds shall not be raised or obtained to purchase items for the personal benefit of any individual student or staff member. Participation in student activities or fund raising shall not be required and school credit will not be given, except for those specifically specified classroom activity funds such as yearbook. The management of Student Body Funds shall be in accordance with generally accepted business practices. All accounting records and documentation for transactions shall be maintained in accordance and comply with applicable state and federal laws and regulations. The Student Body Funds will adhere to Generally Accepted Accounting Principles for all transactions. 10 P age

ACCOUNTABILITY The Board of Education provides the overall direction of Student Body Funds through the Superintendent. Student Body Funds may be audited annually by the Board s designated auditor. The School District Business Office establishes accounting procedures for the Student Body Funds financial activities: to ensure compliance with state statutes, district policies, and accounting principles. The District Business Office will assist in training, provide consulting services to schools, and conduct internal audits and regular continuous monitoring of financial activities. Each Principal is responsible for the administration of the respective building's Student Body Funds. The Principal, as trustee, can be held personally responsible for the replacement of student funds that have been inappropriately spent. The Club Advisors are responsible for monitoring the financial activity for their individual club, or organization. For classroom activities, Teachers are considered to be the Club Advisors. The Athletic Directors are responsible for monitoring the financial activity for clubs associated with individual sports. The Bookkeeper is responsible for ensuring that the proper documentation and evidential matter is obtained for all transactions. This includes providing appropriate cash receipt forms to all Club Advisors prior to the event, and obtaining adequate and complete documentation prior to disbursing any funds from a student body account. In addition, Club Advisors are responsible for training and communicating to respective staff on the proper use of Student Body Funds. Employees of the school district must avoid actions that create even the appearance of using their Public Official position for personal gain or private purposes. Examples of potential conflicts of interest include: Giving and receiving gifts, other than token gifts, in the course of doing school district business. Token gifts are items of inconsequential or minimal value, (generally below $50). Outside employment or the promise of outside employment to a school district employee which would interfere with or inappropriately influence one s decision or actions. School based accounts may be audited annually by an external auditor with interim reviews, and monitoring performed by the District Business Office. 11 P age

APPROPRIATE USE OF STUDENT BODY FUNDS Appropriate use of Student Body Funds include, but are not limited to the following: Class or Activity Club field trips Student rewards, prizes, and other awards Student club parties, dances, or authorized events Out of town contests or pre-scheduled and approved events Purchases of supplies for students use in the classroom or authorized activity Student scholarships to the extent they are available to all students who participate in the activity and are awarded using a defined set of criteria. Staff development expenses for teachers and coaching staff, but only to the extent that the fundraiser was specifically held for that purpose, and all donors were informed, in writing, that the funds will be used for that purpose Prohibited use of Student Body Funds include the following: Travel, meals, and lodging for staff members except when traveling with their respective student group or team Purchases for staff members, coaches, or club advisors including equipment, supplies, and snacks Gift certificates, unless purchased as a prize or award for an authorized student activity Athletic event entry fees, unless required for the entire team s admission to the specifically authorized event Any and all purchases of alcoholic beverages including those purchased with a meal Adult entertainment Compensation for volunteers or other staff members for work or services performed for the school or school district (including gift certificates) There are several pages of examples to guide you in the appropriate use of Student Body Funds in the FAQ section of this handbook. If you are unsure of whether an expense would be appropriate, please contact the District Business Office. 12 P age

SECTION TWO RECEIPTS 13 P age

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RECEIPTS It is the School Bookkeeper s responsibility and duty to make sure that Club Advisors and teachers have the proper paperwork, forms and instructions to account properly for all cash receipts, before the activity or event takes place. The following table summarizes the required forms and documents needed for individual authorized activities: Activity Car washes, garage sales, donation jars, etc. Student Sponsorship Events (Val-o-Grams, Jump-a-Thon, etc.) Class Fees and Fieldtrips Club Sponsorships (Yearbook ads, fence signs, dance sponsors, holiday entertaining, etc.) Concessions and Student Stores Dances, dinners, movie nights, talent shows, etc. or other pre-approved events. Student-controlled sales (Candy bars, pizza cards, beef jerky) Teacher / Advisor-controlled sales (Popsicles, Y-Ties, Yo Yos, Entertainment books, etc.) Pre-sold Items (Bulbs, magazines, cookie dough, gift wrap) Required Preprinted Standard Forms 1. Request to Conduct Fundraising Activity 2. Fundraising/Activity Receipt Report 1. Request to Conduct Fundraising Activity 2. Single Purpose Multiple Receipt (listing each student s name and amount collected) 1. Single Purpose Multiple Receipt (listing each student s name and amount collected) 1. Request to Conduct Fundraising Activity 2. Single Purpose Multiple Receipt (listing each student s name and amount collected) 3. Fundraising/Activity Receipt Report 1. Sign Change Fund Checkout Form 2. Fundraising/Activity Receipt Report 1. Request to Conduct Fundraising Activity 2. Sign Change Fund Checkout Form 3. Fundraising/Activity Receipt Report 1. Request to Conduct Fundraising Activity 2. Fundraising/Activity Receipt Report 1. Request to Conduct Fundraising Activity 2. Single Purpose Multiple Receipt (listing each student s name and amount collected) 3. Fundraising/Activity Receipt Report 1. Request to Conduct Fundraising Activity 2. Single Purpose Multiple Receipt (listing each student s name and amount collected) 3. Fundraising/Activity Receipt Report 15 P age

All cash receipts for grades 6-12 are recorded using the EPES software. The system is designed to provide accurate and complete records for cash receipt transactions recorded in the system. For grades K-5, all cash receipts collected are recorded at the District Business Office on the Visions Software under Fund 249. For grades K-5, the school secretary is the Bookkeeper, and will be responsible for ensuring all appropriate fundraising forms and money, is properly delivered to the District Business Office. RECEIPTING STUDENT PURCHASES All purchases made by or for students must be receipted into EPES individually in the students name. This includes student purchases for: Field trip payments Instrument rentals Uniforms and other athletic supplies/equipment Yearbooks Parking permits Athletic pay to participate fees Student purchases can be receipted either: 1. Directly from the student to the Secretary/Bookkeeper, or 2. Can be collected by the teacher or advisor who is in charge of the activity. Student purchases collected by teachers and advisors The following procedures are required if the teacher or advisor is collecting funds from the students for a purchase: The Club Advisor/Teacher will fill out the Single Purpose Multiple Receipt Form. The form and cash are turned into the Secretary/Bookkeeper. The Secretary/Bookkeeper will receipt all items under the name of the Club Advisor/Teacher for the Vendor. The detail of this receipt will be shown by using multiple line items to record each student and their individual purchase. The Secretary/Bookkeeper will then run a Sequential Listing report by Receipt Number. The condition of this report will be the Receipt Number. This report will serve as the receipt to the teacher. Student purchases collected by Secretary/Bookkeeper Students or parents may make payments directly to the Secretary/Bookkeeper. In this case, the student is receipted individually and is given a receipt directly from EPES or a 3-part receipt book. Receipting for General Operation Fund Activities Create a subaccount per activity under the General Operation Fund. An example of this would be: selling pencils to students. The sale is not to benefit any specific fund/club. This transaction through the General Operations Fund will allow you to run reports and view revenue compared to expenditures, per subaccount. 16 P age

FUNDRAISING GUIDELINES All fundraising events must be approved in writing by the Principal prior to beginning the activity using the Request for Fundraising Activity Form. No fundraising activity shall take place unless the form has been submitted, and approved prior to the start of the event. Once approval is received, the Club Advisor may proceed with organizing the event. The Club Advisor is responsible for instructing students and adult volunteers on correct and appropriate procedures. If the Club Advisor is not familiar with the recordkeeping or other requirements, he or she should contact the School Bookkeeper for detailed instructions specific to that event. By requesting approval for a fundraiser, the Club Advisor accepts all responsibility for training volunteers and students on proper and correct procedure for accurate and complete accounting for all cash collected. **Expenses may not be paid out of the fundraising proceeds, except in limited circumstances and when it is part of the authorized written fundraising plan approved by the Principal. Cash disbursements directly from fundraising proceeds will seldom be allowed and should be properly and accurately accounted for, if necessary. Fundraising supplies should be acquired and paid for using the guidelines provided under the Disbursements Process in this handbook. (pg.28) When receipting for fundraisers, an important part of the process is setting up proper EPES subaccounts. Each fundraiser must have its own unique subaccount. You may not set up one item called Fundraiser and run multiple activities through it. For elementary schools, subaccounts are created by the District Business Office based on the information provided by the school secretaries/bookkeepers. Example: The football program conducts four fundraisers each year: (1) Summer Golf Tournament, (2) Letter Writing Campaign, (3) Fall Football Youth Camp, and (4) Krispy Kreme sale. You are required to set up the following EPES subaccounts: 100-1 Summer Golf Tournament 100-2 Letter Writing Campaign 100-3 Fall Football Youth Camp 100-4 Krispy Kreme Sale 17 P age

FUNDS RAISED BY OTHER ORGANIZATIONS Funds raised by independent, third party organizations, such as PTA or Booster groups whose purpose is to indirectly support athletic or activity programs, will be managed by the third party organizations. These organizations are separate entities from the District and must use their own federal tax ID number for their activities. If one of these organizations raises funds for your Student Body, you do not have to follow the cash receipt requirements as long as the following conditions are met: 1. The fundraiser must be clearly advertised as a PTA or Boosters fundraiser, and 2. District employees do not collect or handle cash at the event, except under the guidelines the PTA or Boosters have set forth. If both of these conditions aren t met, it s considered a school fundraiser and you will need to follow the cash receipt processes in this handbook. All teachers, including athletic coaches, are prohibited from participating in the management and disbursement of funds for these organizations, including the authority to sign checks. Outside organizations may donate money to the Student Body Funds. These funds can then be deposited and disbursed from the Student Body Funds, so long as they are an appropriate use of Student Body Funds. RECEIPT PROCESS FUNDRAISERS, FIELDTRIPS, EVENTS, ETC. 1. Club Advisor requests approval for a fundraising event using the Fundraiser Request Form. The form is turned into the principal. 2. Principal reviews request and approves fundraiser. The form is returned to the Secretary/Bookkeeper, who maintains one copy in a binder for future reference. 3. Secretary/Bookkeeper notifies the Club Advisor that the fundraiser has been approved and provides the appropriate cash receipt forms to the Club Advisor or Teacher. 4. Secretary/Bookkeeper ensures that the Club Advisor understands how to use the cash receipt forms, and that the use of the forms is required. Secretary/Bookkeeper will provide training on the forms if necessary. 5. Club Advisor collects money from the fundraiser, filling out the appropriate paperwork as instructed by the Secretary/Bookkeeper. 6. If the fundraiser will run for longer than a week, the Club Advisor must summarize the receipts on a weekly basis and submit the information to the Secretary/Bookkeeper, along with all monies collected. 7. Club Advisor turns the money into the Secretary/Bookkeeper along with the appropriate documentation. 18 P age

8. Secretary/Bookkeeper verifies that the totals on all forms agree to the cash the advisor has turned in. This must be done the same day that the money is turned in. 9. Secretary/Bookkeeper receipts the money into EPES or with a 3-part receipt under the advisor s name. The Club Advisor/teacher must be given the receipt as documentation that their collection was received. 10. Endorse the back of each check with a stamp that reads as follows: For deposit only, Jefferson County School District 509J, and (account number). 11. Place all cash, receipts and supporting forms in a locked, secure location. 12. Complete the EPES End of Period (EOP) process and deposits bi-weekly, or by the next day if total cash receipts exceed $750. For elementary schools, the secretary is responsible for turning all money into the District Business Office along with the Cash Deposit Form for 249 funds. 13. All Cash-on-Hand must be deposited by the last day of each Month. BANK DEPOSIT PROCEDURES AND DOCUMENTATION Complete a bank deposit slip that has duplicate. Attach deposit slip duplicate with backup documentation for all receipts. The deposits are done by the Secretary/Bookkeeper, and should be made and reconciled that day. This process should follow after inputting weekly receipts. Deposit slip should match all receipts entered since the last bank deposit. The Deposit Summary form is a comparison of the cash receipts and the money deposited. It serves as a summary and cover sheet for all the supporting documents for the deposit. Cash over = If the deposit total is larger than the total of the cash receipts. Cash short = If the deposit total is smaller than the total of the cash receipts. If the cash over or short is more than $25 the Secretary/Bookkeeper must inform the Principal. To show that he/she is aware of the discrepancy, the Principal must sign the Deposit Summary. 19 P age

For your files, attach the following behind the Deposit Summary: Duplicate copy (yellow) of the bank deposit slip All the perforated cash receipt copies included in the deposit (in numerical order including Voided Receipts) Receipt of deposit from the bank MANUAL CASH RECEIPTS Manual receipts must be made in a pre-numbered three-part receipt book. All the information on the example below is required: Date received Name of donor Amount of donation Designation or restriction on spending (activity account). Distribute parts of Cash Receipt form Original (top) - To the payer. Non-perforated copy - Stays in the receipt book Perforated copy - Attach to the deposit back-up and kept with the file at the school Enter receipts into the EPES system or provide to District Business Office with the Deposit Slip. RECEIPT PROCESS STUDENT STORE AND CONCESSIONS 1. The authorized store manager or concessions manager signs the completed Change Funds Request form to receive till change. 2. Bookkeeper provides the Fundraising/Activity Receipt form to the manager and provides instruction on how the cash must be accounted for, recorded, reported, and reconciled. 3. At the end of each day or activity the receipts along with the completed Fundraising/Activity Receipt form will be turned back into the Bookkeeper for review, approval, and file maintenance. Under no circumstances should expenses be paid directly with money out of the cash box. When additional inventory or supplies need to be purchased, the Club Advisor should properly complete a purchase order and obtain prior approval for the authorized disbursement. Cash boxes must be turned in daily to the Bookkeeper. Under no circumstances should these boxes be locked in the student store or an employee s classroom overnight. 20 P age

RECEIPTING FOR PAY TO PLAY ATHLETIC FEES The Secretary or Bookkeeper is responsible for taking pay to play fees. These must be receipted individually to the student. The student will take their receipt to the athletic secretary, who will begin the process of checking eligibility, etc. GATE RECEIPTS Gate receipts must be receipted using the EPES software. The ticket manager will first count and prepare the ticket reconciliation. The cash and the reconciliation will be turned into the High School Bookkeeper who will receipt the funds into EPES and deposit them with their normal End-of-Period (EOP) process. **Gate fees and Pay-to-Play Athletic fees, must be remitted to the District Business Office on a quarterly basis. 21 P age

RECEIPTING FOR MISCELLANEOUS DONATIONS For all District Donations, refer to the District Policy and Administrative Rule (KH, and KH- AR). This is found on the District Website under the Policies. Please encourage donors to specify how the donated funds should be used. Occasionally, the Secretary or Bookkeeper may receive donations that are unrelated to an approved fundraiser. In these cases, the donation MUST be receipted to the individual who donated, NOT to the advisor or teacher who turned it into you. You may only receipt advisors for funds that came in from established fundraisers. Otherwise, you must add a non-student customer to EPES and receipt the donor. Donations: Individuals or organizations making contributions to Jefferson Country School District 509J should be provided with an acknowledgement of the contribution. You should provide donors a written acknowledgement no later than seven (7) days after receipt. A donation form will be provided to all Building Secretaries and Bookkeepers to use. Give the original to the donor and keep a copy for your files. The District policy must be followed when accepting a donation of cash or gift of any kind. Information on donations of cash or items valued at $500 or more must be sent to the District Business Office for acknowledgement. The District Business Office will prepare an official receipt of the donation, after District School Board approval. All funds donated will be kept at the original school in which the funds were donated, unless otherwise specified in the Bylaws for the Club/Fund. Donations will not be associated with the Club Advisor, but with the Student Body Fund and school in which the donation was specified to benefit. Token Value for a Donation If any goods or services were exchanged for a donation, these must be listed in the thank you/acknowledgement letter if they go beyond "token" value (i.e. if the items cost your school or club more than $9.60 to produce, or have some commercial value, such as tickets to play that would cost the public $10 each). Example 1: Donor gives $100 and receives a coffee mug featuring the school's logo. The mug cost $3.50. Therefore the value of the mug is considered "token" and the letter can still state that no goods or services were provided in exchange for the donation. Example 2: Donor gives $100 and receives two tickets to the school play, which are sold at $10 each to the public. The letter must state that two tickets with a total value of $20 were given to the donor in exchange for the $100 donation; therefore only $80 of the donation can be considered a charitable contribution. Additional information can be found in IRS Publication 1771. 22 P age

Cash Donation through third party websites The District acknowledges the potential benefit of accepting donations through a third-party online payment processor. District policy, refer to the Public Gifts to the District (KH-AR), as well as compliance with Generally Accepted Accounting Principles (GAAP), requires the guidelines below to be used for this collection method: 1. In partnership with the school or department administrator, the project lead will set up a school/project account with the third-party website. 2. Disbursements will be deposited directly in the School Student Body Account via ACH or check. Donations will not go to the Club Advisor/teacher. 3. The Club Advisor/teacher will request the funds through the standard Student Body Account methods. 4. The District Business Office will have administrative rights to the website account for tracking purposes. 5. The school or department administrator, and Club Advisor/teacher will determine in advance how the web service fees will be charged. The project description must include the fee amount if it will be charged to the donor. SCHOLARSHIP FUNDS Schools may set up scholarship funds in Student Body Accounts with approval from the District Business Office, for the following types of scholarship funds: Where annual staff or student collections are to fund one or more current scholarships Where a donor wishes to donate a specific amount that is to be paid in full in the current year to a scholarship recipient Any scholarship fund that is donated by a donor who wishes to keep all or part of the principal intact, or makes a significant donation that is to be given out over time, must be accounted for in a trust fund at the District Business Office. If you receive donations for new scholarships, you must first contact the District Business Office for approval to deposit the funds into the student body account. Established criteria for awarding individual scholarships must be in place, and an open scholarship process must be maintained. Application for the scholarship must be made available to any student who meets the established criteria. 23 P age

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SECTION THREE DISBURSEMENTS 25 P age

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DISBURSEMENTS It is the Principal s, Advisor and Bookkeeper/Secretaries responsibility to make sure that disbursements are appropriate in nature to the respective activity account. They are responsible for educating their staff and administrators on these policies. If you cannot determine whether a use is appropriate using the guidance in this handbook, please contact the District Business Office for clarification or approval. DISBURSEMENT GUIDELINES EPES System users: Prepare checks in strict preprinted complete numeric sequence to pay invoices by the due date and in time to take advantage of any cash discount offered. Do not write checks which are not adequately covered by cash in the checking account. Do not write checks which would cause an individual Student Body Fund balance to be negative, without obtaining the Principal s specific written authorization. If any error is made in writing a check, do not erase or alter it; mark it VOID tear out the signature portion and file the check with the other checks in numerical order. Be sure voided checks are entered into EPES following the guidelines of how to enter voided checks into the EPES system. An issued check is to be voided if the check has been lost or never received and needs to be reissued. A VOID must be entered in the EPES system and all voided checks should be sequentially accounted for. Keep all voided checks in the monthly binder. Arrange to make a stop payment with the bank only if the check amount exceeds the stop payment charge (generally about $25). Disbursement Guidelines for Fund 249: Follow the requisition process for IVisions using fund 249. After the requisition has been approved, a Purchase Order (P/O) will be created. Print off the P/O, and create the order/purchase with the vendor. If the vendor requires a credit card, a Purchasing Card may be used. Allow 3 business days for the requisition to follow the approval process and have a P/O created. DISBURSEMENT DOCUMENTATION REQUIREMENTS Never write a check without adequate evidential documentation and approval. If a vendor insists on prepayment and will not take a Purchase Order or District credit card, the Club Advisor must fill out a standardized Check Request Form, which must be approved and signed by the Principal before the disbursement is made. The Club Advisor must bring an invoice or other receipt to the Principal for documentation within 48 hours. When student clubs are participating in out-of-town events, they may need funds in advance for meals. This is allowed, as long as the Club Advisor provides a list of all students attending and the Principal approves. Schools have the option to set a student per diem rate for meals as long as it doesn t exceed the per diem rates set by the District. Schools will want to set a lesser per diem for student travel. Jefferson County School District 509J suggests a per diem rate for students as follows: $5.00 for breakfast $5.00 for lunch $10.00 for dinner 27 P age

Upon return, the Club Advisor should provide the Principal with a list of the students who attended and each student should initial beside their name to indicate that they received meals on the trip. DISBURSEMENT PROCESS Disbursement by Check 1. Teacher/Club Advisor/Coach completes a Purchase Order(P/O) and submits it to the Principal or designee for approval and authorized signature. Purchase orders must be approved before the making the purchase or placing the order. 2. The approved and signed P/O is routed to the Bookkeeper who verifies that funds are available in the particular authorized activity account. 3. If funds are available, the Bookkeeper places the order and sends a copy of the signed P/O to the vendor, if required. 4. Bookkeeper keeps the original signed and authorized P/O in the pending file. 5. After materials are received packing slips are initialed, and dated, then forwarded to Bookkeeper. If no packing slip is received, the purchaser will initial and date the invoice as proof that the items were received. 6. Bookkeeper receives the invoice and matches it up to the approved P/O, verifying items, extensions, and totals for mathematical accuracy. If the documents agree, attach the Invoice, P/O, and Packing Slip together as documentation for the check and file maintenance. 7. Bookkeeper writes a check for the approved invoice and submits the check, attached with invoice backup, to the Principal for authorized signature. 8. Principal reviews all backup documentation for reasonableness and signs the check. Online Purchases If a purchase was made online, make sure to have a printed copy of the electronic purchase, in addition to all other pertinent support documentation. Verify that the receipt is shown paid in full as appropriate. For items purchased using Craigslist, the following information will be required to document the purchase and receipt of the item. A UPS receipt or USPS postage showing signed receipt of the item, picture of the item, cost, purchase approval and purpose of the item. In addition, internet correspondence is required relating to the purchase. 28 P age

1099 REPORTING All payments to service providers or contractors must be reported to the District Business Office each year on a semi-annual basis. All payments must be reported regardless of the amount paid. The District Business Office is required to add up all Student Body Fund payments to determine whether an individual contractor must be issued a Form 1099. Note that the amounts to be reported are for the calendar year, not the school year which necessitates the semi-annual reporting. You will be reminded in early January of each year to provide the following information: 1. The name of the vendor 2. The total payments for each vendor 3. A listing of the portion of payment that was used for supplies, or service 4. A completed New Vendor Form (W-9) found on the District website, for each vendor RETURNED CHECKS (NSF) NSF Returned Checks The amount of a returned check is not considered a bank charge, and will be taken out of your checking account. This is considered a journal adjustment in the EPES program. Whenever you have NSF checks you must record them in the accounting software to reverse out the original receipt of the funds. It will be recorded as a Journal Adjustment with a negative amount, and classified as E (Expense). This shows that you are reversing the income and should be done before the close of the books for the current fiscal year. Issue an NSF letter to the person(s) involved within 7 days. Follow Bank Charges procedure below for all banking fees associated with the NSF. BANK CHARGES For MHS, JCMS, and Warm Springs K-8: Bank charges or NSF fees on your statement should be applied to the General Operations Fund. If the General Operations Fund ever goes below zero, this account will be replenished by the Principles discretionary budget. For Banking or NSF fees associated with Fund 249: The NSF fees will be applied to revenue account of 249.0000.1990.701.000.000.00. If the General Fundraising Account goes below zero, it will be replenished from the Principles discretionary budget. 29 P age

COLLECTION OF STUDENT DEBT Owing Less Than $50 The school may withhold grade reports, diplomas, records of students, records of former students until the outstanding debt is paid. Owing $50 or More The school must withhold grade reports, diplomas, records of students, records of former students until the outstanding debt is paid. WRITTEN NOTICE The student or parent must receive written notice that the records will be held until the debt is paid. This notice must be given at least 10 days before withholding the records. The notice must state: 1. The reason that the student owes the money 2. An itemization of the fees, fines, or damages owed 3. A statement that Jefferson County School District 509J may pursue the matter through a private collections agency or other methods 4. A statement that the amount owed can be contested through the parent/student complaint procedure (a copy of the complaint procedure must be enclosed) 5. A statement that if the parent/student complaint procedure is not commenced within 30 days of the notice, the amount of debt will be considered correct and the records will be held If the requested grade reports, diplomas, or other education records are required for placing a student at another educational institution (excluding an institution of post-secondary education), the records must be forwarded. DONATIONS, GIFTS AND GIFT CERTIFICATES (Disbursements) GIFTS Families in Need Many schools take up collections from staff, as well as receive donations from churches, parents, and others in the community, in order to put together a holiday gift basket that may include gift certificates. In these instances, the school is acting as a coordinator to accumulate amounts of money from a variety of external sources to put together enough to make a meaningful difference for families in need. Such activities also help children learn to be caring about others. These activities are allowed, as long as the school is simply acting as a pass-through, and not using any District Funds or Student Body Funds for these projects. Donors may be given the District s tax ID (93-6000537) number for their donations in these cases. Since such funds were collected for a specific reason/project, they require special handling, and should be placed in a Pass Thru Account. Such funds should not be placed in the Principals Discretionary Account. 30 P age

GIFT CARDS (Disbursements) Gift cards should generally not be purchased with District funds (consolidated budget, grant funds, Student Body Funds, or department budgets). For Employees Gift cards may not be purchased with District funds and given to employees (e.g. coffee gift cards, gift cards to coaches or volunteers). The IRS considers gift certificates the equivalent of cash, which must be reported on the employee s W-2 s as wages and be taxed, regardless of how small the amount. If this practice is not adhered to, the gift card amount will be added to the employee s gross pay and reported on his/her W-2. For Students Gift cards may not be purchased with District funds and given to students. Rewards and awards for students should be the item itself, rather than a gift certificate to buy the item, and should preferably be related to the educational objectives of the student activity that earned the award. Exception for gift certificates to students: If a donor or donation specifies that the funds should be used to purchase gift cards to be given out to the parents or guardians of hardship or needy students for clothing, etc. The funds should be placed in a separate Pass Thru Account with documentation to support the donor s wishes. Documentation of the donations to parents and guardians should be kept with the file. Gift cards or other cash equivalent may not be purchased for any staff member, volunteer or student as a thank you or in exchange for services or effort. In limited circumstances, gift cards may be purchased for students for rewards or contest prizes. Gift cards purchased for student rewards or prizes should be for establishments where alcohol is not available. The amount should not exceed $25. Donations to Outside Organizations Donations to outside organizations or persons are permitted if paid from Pass-Thru Accounts and if the organizations or persons can demonstrate that the donation provides a direct or indirect benefit to the students(s) and /or school. No fundraiser event funds that were not originally intended for an outside organization should be paid from the Student Body Funds. Purchased with Personal Funds The Principal may purchase gift cards (limited to under $50) for reasons such as showing appreciation to teachers, staff, or custodians with his or her own personal funds (not Student Body Funds). The District has no authority to make rules about how individuals spend their own personal money. 31 P age

CREDIT CARDS Credit cards issued to the individual schools for use with Student Body related disbursements are allowed, with some limitations and required monitoring. The credit card should have the school s name on the front of the card. Generally, reimbursements for district purchases paid personally by a staff member or volunteer will only be made if the documented purchase was paid for using cash or personal check. Credit card accounts may not be opened without the approval of the Chief Financial Officer. All purchases must be pre-approved by the principal or designee in advance of the purchase. Users must fill out the Request for District SBF Cards Use Form in advance of using the card. Users must return the card, along with all original detailed receipts and backup documentation to the Bookkeeper. The forms must be filled out completely. Detailed receipts and sufficient evidential documentation are required for all purchases. Approved uses include: Use at businesses for student activity related purchases for which the business does not accept a purchase order. User must obtain prior approval and verify that there are funds available for the activity prior to using the card for the purchase. Use to pay for travel related expenses for student activities for which there is prior authorization, approval, and funds available. Detailed original receipts and backup documentation are required. Uses that are not permitted: Use for non-student activity purposes to be reimbursed with a District Business Office check or outside organization (i.e. the parent-student organization). Any use for which there are no specific funds allocated in the student body accounts. This includes using the credit card for Student Body Accounts that have a zero or negative balance, unauthorized, or unapproved purchases. 32 P age

PETTY CASH Petty cash reimbursements may be made to staff members, volunteers or students for supplies and/or services received if properly authorized and documentation is presented. Petty cash reimbursements may not exceed $50 per purchase. Invoices or original receipts must be provided and approved before petty cash reimbursement is made. PETTY CASH PROCESS - DISBURSEMENTS Requestor fills out a Petty Cash Advance Form and gets approval of the Principal or designee and turns it in to the Bookkeeper. Bookkeeper gives the requestor the approved petty cash advance, and requestor signs the form to document how much Petty Cash they received. Requestor makes purchase and turns in receipts and any left over cash by the next business day. Petty Cash Advance Forms includes: 1. Name and signature or initial of Requestor 2. Amount and purpose of expenditure 3. Account name and account number 4. Approval of Principal or designee PETTY CASH PROCESS RECONCILIATION As needed, the Secretary/Bookkeeper will reconcile petty cash and request replenishment from the District Business Office. You must reconcile your petty cash at least once per month, even if you do not need to replenish your cash. 1. Bookkeeper records and reconciles petty cash activity using the Petty Cash Reconciliation Form. 2. Bookkeeper prepares an approved P/O, in order to replenish the petty cash, and attaches the reconciliation form and receipts to the P/O. 3. Bookkeeper prepares a check, payable to the custodial of Petty Cash, and submits the completed, approved package to the Principal. 4. Principal reviews and approves the purchase order, and signs the check. 5. Bundle the following documentation together and file in the petty cash file: Copy of Check executed Purchase Order authorized Petty Cash Reconciliation signed Receipts and Invoices approved 33 P age

CHANGE FUNDS Change funds may be needed for certain activities including movie nights, athletic events, dances, concessions and student stores. This can be requested by using a Change Funds Request Form. When the change fund is no longer needed, the cash should be deposited back into the bank, and receipted into EPES using the change fund item. Change funds kept on hand are permissible, but must be stored in a secure, locked location. EMPLOYEE REIMBURSEMENTS FOR ITEMS PURCHASED WITH Reward CARDS Occasionally, employees may purchase items for school or district use using their personal funds and request reimbursement for these items. Whenever possible, this practice should be discouraged. Employees may not use personal credit cards for district purchases if the card earns any type of reward, such as airline miles, points, or cash back. If they have no other card available for use, they should use the school s purchasing card (P-Card). It s the Secretary/Bookkeeper s responsibility to make school staff aware of this requirement. Violating this policy might be construed as personal financial gain under Oregon Ethics rules. If an employee uses a Rewards card by mistake, contact the District Business Office. In some cases, the value of the Reward may be deducted from the reimbursement to avoid potential Oregon Ethics violations. 34 P age

SECTION FOUR ACCOUNT CODING 35 P age

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BASIC STRUCTURE OF DISTRICT ACCOUNT CODES Madras High School: 1000-1999: Student Clubs 2000-2999: Student Class Funds 3000-3499: Scholarship Funds 3500-3999: Student Groups Funds 4000-4999: All Student General Funds 5000-5999: Student Athletic Funds 6000-6999: General Operating Funds JCMS and Warm Spring K-8: 100-199: Fines Funds 200-299: Student Clubs 300-399: Student Class Funds 400-499: Student Athletic Funds 500-599: Student Reimbursement Funds 600-699: General Operating Funds All Other Schools: Sub-Area: 200-299 Student Clubs 702-735 Student Athletic Funds 738-741 General Clubs Area of Responsibility: 800-899 Student Class Funds 37 P age

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SECTION FIVE MONTH-END YEAR-END REPORTING BANK RECONCILATIONS AUDITS RECORD RETENTION 39 P age

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ADJUSTMENTS An adjustment might be necessary when reconciling the bank statement. For all entries involving an adjustment to the bank account: Prepare an Adjustment of Funds Form, listing and specifically identifying and describing all adjustments for that month Obtain signed approval of Principal Enter into EPES as a JOURNAL ADJUSTMENT, noting the reason and details for the adjustment with the appropriate date, amount and approval Attach any backup documentation and approval to the Adjustment of Funds form File the completed and initialed adjustment documents in chronological order STUDENT BODY FUND CLUB TRANSFERS Teachers may request a transfer between activity accounts. Secretaries/Bookkeepers process the transfer request in the EPES system, or provide the following documents to the District Business Office to make the transfer. Transfers are submitted by using the Transfer Form, and the following is required for every request: Principal approval Signature of the advisor whose club is being charged Explanation for the transfer NEGATIVE BALANCES Any schools experiencing negative balances at year end in their Student Body Funds should prepare a Student Body Fund Negative Balance report. The report should include a narrative of the accounts, the reason for the negative balance, and the action step to correct it. TURNOVER OF SBF PERSONNEL Whenever there is a turnover in personnel with responsibility for Student Body Funds, the combination and/or keys to the safe, doors and other secured areas should be changed. Prior to leaving the Student Body Funds responsibility, the individual should be required to turn over all school property assigned to him or her. For example: keys, cell phones, etc. MONTH END QUICK GUIDE 1. Record all monthly receipts, disbursements and adjusting entries in EPES. 2. Review the bank statement for entries that have not been made in EPES, and complete. 3. Complete the bank reconciliation. 4. Print all required month-end reports. 5. Review month end reports with the Principal, and obtain signatures. 6. Send copies of signed reports to District Business Office 7. Send/give copy of Monthly Advisor Reports to staff/teacher that had activity for the month. 41 P age

MONTHLY ADVISOR REPORTS The Secretary/Bookkeeper is responsible for providing financial reports to Student Body Club Advisors, and the Principal as needed. Reports should be provided at the end of each month to all teachers and Club Advisors so that they have up to date information on their accounts. Student Body Club Summary a listing of all the clubs activity: beginning balance, receipts, disbursements, and ending balance, the report can be run either by alpha by club name or by club number Recommended Monthly Advisor report in EPES is: Reconciliation run by month range, select all boxes, and then preview report. This will run 2 different reports; the second report is the only report applicable. Print only the reports necessary to for your Club Advisors. Keep a copy of the Monthly Reports given to Advisor for audited records MONTH END CLOSING AND REPORTS With the EPES activity accounting software, you are able to close each month, after all transactions are in and the bank statement is balanced. Once a month is closed, then no more entries will be allowed into that month. Ideally, you will leave a month open until the 15th day of the following month. For example, close September on October 15th, and then no more September entries will be allowed. FILING All schools must file their Student Body Fund records in a uniform way. A District-wide standard filing system will enable an auditor, substitute Secretary/Bookkeeper or any other designated District employee to locate the required records in a timely manner. Make a binder with dividers for each month of the school year. July, August, and September can be combined into one monthly file since there is usually very little activity in July and August. For each month, include: Bank Statements Deposit back-up Check copies/stubs with appropriate back-up (file numerically) Bank wire statements and any appropriate back-up Month-end reconciliations and reports; including journal adjustments Activity transfers and other notes 42 P age