White Settlement I.S.D.

Activity Fund

Sponsor Responsibilities

GENERAL RECEIPTING PROCEDURES

A.  All cash and check collections must be recorded by the person receiving the money:

1.  Original to person submitting money.

2.  Permanent copy retained in the receipt book.

B.  The receipt must be completed in its entirety, including:

1.  Date, activity fund name and amount

2.  The individual or firm submitting the money.  A receipt may not be issued to more than one person.

3.  An explanation of the purpose for which the money was received

4.  The correct Activity Fund account code

5.  The signature of the person receiving the money.  The signature must be manual; signature stamps are forbidden.

C.  An actual cash count should be made by the person signing the receipt in the presence of the person turning in the money.

D.  Post dated checks cannot be accepted from any source.

E.  Under no circumstances shall a cash receipt be altered.  If an error occurs, VOID the original receipt and all duplicates and issue a new receipt.  The original of the voided receipt must be attached to the copies and retained for audit purposes.

RECEIPT OF MONEY BY PERSONS OTHER THAN THE CAMPUS SECRETARY

A.  The Campus Secretary or designee is responsible for maintaining an adequate supply of Tabulation of Monies forms and Cash Sub-Receipts. 

B.  A distribution record must be kept of all Cash Sub-Receipts issued to teachers, sponsors and other individuals approved by the principal to collect funds.

C.  Money may be collected by an authorized individual other than the Campus Secretary or designee (teachers, librarian, clerks, etc., but only as approved by the principal) for such items as books, student fees, fund raising activities, etc.  In such instances, the individual collecting the monies must account for the monies collected as follows:

1.  Tabulation of Monies forms must be completed with all information provided when money is turned in to the school secretary.

2.  In some cases, the authorized individual may issue Cash Sub-Receipts to payers for monies collected.  The permanent copy should be stapled to a Tabulation of Monies form with only the summary and total information completed.

3.  Collections shall be submitted to the Campus Secretary or designee weekly or whenever the aggregate amount of such collections exceeds $100.00.

4.  The original completed Tabulation of Monies Form and the attached copy of the Cash Sub-Receipts shall be taken with monies collected to the Campus Secretary or designee who will count the funds in the presence of the depositor and prepare an Activity Fund Cash Receipt once the deposit total is verified.  The Campus Secretary or designee should also sign the Tabulation of Monies Collected form.

5.  The Campus Secretary or designee should keep on file for 5 years for audit purposes the original Tabulation of Monies form and permanent copies of Cash Sub-receipts.

6.  Individual sponsors/collectors should keep verified copies of the Tabulation of Monies collected for 5 years for audit purposes.

DEPOSIT PROCEDURES

A.  Banking deposits must be made daily whenever cash collections exceed $100. 

B.  Deposits should always be made on Friday even though the cash on hand does not exceed the maximum allowable.  Undeposited receipts at the close of the school week (normally Friday except in the case of holidays) should be kept to a minimum.

C.  All monies on hand at the end of the school year should be deposited prior to closing the books for the year.

CASHING OF CHECKS

A.  The practice of cashing personal and/or payroll checks is not permitted.

PURCHASES FROM ACTIVITY FUNDS

A.  The school principal is fully responsible for all purchases and commitments requiring the present or future disbursement of Activity Fund monies.  Teachers must have a commitment from the school principal before making any purchase in the name of the school.

B.  No purchases shall be made unless sufficient funds are available in the proper Activity Fund account.

C.  Payments for services performed by individuals not employed by the District may not be made directly from the Activity Fund.  A check payable to the District should be attached to a Direct Pay Request and sent to the Business Office for payment.  These checks will be run in the normal check run so please keep in mind if you send it in one week it may be the next week before payment is made.  If it is anticipated that total expenditures to non-employees during a calendar year could exceed $600, the social security number of the individual should be recorded on the Direct Pay Request in order for the District to issue a 1099 form as required by Section 6041 of the Internal Revenue Code.

GENERAL POLICIES

A.  All expenditures shall be made by purchase order.

B.  Income received from a specific group (student and faculty) should be expended for that group.  The principal shall ensure that expenditures from these accounts are written for the intended purpose of the group and should not divert for other uses.

C.  No expenditure of funds shall be approved by the principal unless sufficient funds are available in the appropriate activity account.  Thus, no purchase order or check shall be drawn on any account with a negative balance.

REQUEST FOR PURCHASE ORDER

A.  A completed Request for Purchase Order shall be the authority for the issuance of an Activity Fund purchase order.  It must be completed prior to the purchase of any goods.  It will be entered into the district computer software, go through the approval process and then the purchase order will be issued.

B.  A completed Request for Purchase Order shall include:

            1.  The payee (vendor)

            2.  Date and amount

            3.  Signature of person requesting purchase order

            4.  A list of items to be purchased

            5.  Activity account number to be charged

            6.  Approved signature of the principal

ISSUANCE OF CHECKS

A.  No expenditure of funds shall be approved by the principal unless sufficient funds are available in the appropriate activity account.  Thus, no check shall be drawn on any account with a negative balance.

B.  All payments shall be made by prenumbered Activity Fund checks written in the business office.

C.  All Activity Fund checks will be signed with the check signer.

D.  Payments must always be made to a specific person, company or organization.  Checks shall NEVER be made payable to “cash”.

ADVANCE PAYMENTS

A.  Advance payment may sometimes be requested for necessary expenses to be incurred by clubs or other student groups engaged in out-of-town travel.

B.  A travel form should be filled out, have the principal approve the trip and the form sent to the activity funds clerk.

C.  Upon completion of the activity, the sponsor shall return any unused funds to the school secretary for issuance of a receipt.  All supporting documentation and the receipt for unused funds shall be attached to the original travel form.

D.  The settlement of all advances shall be completed no later than fifteen (15) days after the completion of the activity for which the advance was made, except in cases deemed necessary by the principal.  In all cases settlement should be attained prior to the end of the school year.

FUNDRAISING ACTIVITIES

DEFINITION OF FUNDRAISING ACTIVITIES

A fundraising activity may be defined as any activity involving participation of a student body or a school recognized student group undertaken for the purpose of deriving funds for a school or a school sponsored group.

FUNDRAISING ACTIVITIES FOR A SCHOOL

A.  GENERAL

1.  Fund raising activities are not confined to regular school hours but are considered an extension of the school program.  When fundraising activities are in the name of the school, all funds raised become school funds, belonging to the school sponsored group responsible for raising the money.

2.  To request permission to conduct a fund raising activity, the organization/school should complete the Fundraising form and submit it to the Communications Office no later than two weeks prior to the fund raiser.

B.  ACCOUNTING FOR FUNDRAISING ACTVITIES

1.  Collections and Disbursements:

A.  All collections must be receipted.

B.  All collections and disbursements associated with any fundraising activity coordinated by the school or a school recognized student group shall be transacted through the Activity Fund.

2.  Upon completion of fundraising activities, the Financial Recap Section of the Fundraising Application should be completed by the sponsor and filed with the school secretary. 

This report indicates Total Sales and Expenses and Actual Income.  Disposition of the net proceeds (profits) should also be disclosed if funds were collected for a specific purpose.

TRANSFERS OF FUNDS BETWEEN ACTIVITY ACCOUNTS

GENERAL POLICIES

A.  Some activity accounts are established for the single purpose of isolating transactions for a specific activity, collection, solicitation, etc., thereby enabling the profitability of the activity to be determined; a Picture Account and Candy Sale Account would be two (2) examples.  Net proceeds remaining in such an account must be transferred to the account approved on a Transfer of Funds Authorization Form.  For example, if pictures were taken to provide funds for new library books, then the net proceeds (balance in the Picture Account after all remittances to the studio, etc.) should be transferred to the Library Account on a Transfer of Funds Authorization Form.

B.  Some activity accounts are expected to be revenue producing by the very nature of the accounts.  Receipts almost always exceed possible expenditures and the balance in such an account will increase indefinitely unless some disposition is made of the excess revenue; vending machine accounts are an example.  As detailed in Section 10.2, vending machine revenue should be transferred, at the option of the principal, to accounts related to the supporters/payers from whom the profits were generated or other account for student related purposes.

C.  Occasionally a club will compensate another school organization for goods purchased or services performed.  This may occur when a club purchases advertising in the yearbook, newspaper, etc.  A transfer of funds shall be made between accounts in such instances in lieu of issuing an Activity Fund check.

D.  Likewise, a club may desire to make a voluntary donation or contribution to partially defray the expenses incurred by another club in directing a certain activity.  In such cases, the contribution shall be effected by an internal transfer of funds.

E.  Transfers require the approval in writing of the principal and club sponsors or account custodians when the transfer involves accounts with delegated responsibilities.

DOCUMENTATION OF TRANSFERS

A.  Each transfer shall in initiated by preparation of Transfer of Funds Authorization Form disclosing both the amount of and the reason for the transfer,

B.  When all required approvals have been obtained the school secretary may precede with the necessary journal entries.

C.  All copies of the Transfer of Funds Authorization Forms shall be maintained with the School Activity Fund records.