Tips and tricks for your activity accounts Sabrina Garner Cindy Shiever Tahlequah Public Schools Enid Public Schools Activity Account Specialist Business Office Manager

Tips Don’t take any wooden nickels! If you rob a bank, you will have no trouble with rent or bills for the next ten years. Seriously, follow the statues and district policy for compliance of governing Activity Funds. It is important to have locally-adopted rules and established internal control procedures.

Tricks Getting everyone to comply with the procedures and regulations. Segregation of Duties Activity Funds largely consist of cash causing high risk of mishandling or misappropriation of funds. Funds held outside school district Unapproved fundraisers Use of the school’s tax exempt status

ACTIVITY FUND Reminders The BOE exercises control of all public funds collected and expended by a school district. The BOE shall appoint a School Activity Fund Custodian(s) Activity Fund Custodian(s) shall be bonded for no less than $1,000 Board approval of the School Activity Fund and Sub-Accounts Fundraisers are board approved

Activity fund reminders Checks are countersigned by the Activity Fund Custodian and other person designated by the BOE. Clearing accounts for i.e. child nutrition, lost books/Chromebook fees, petty cash are to be closed by June 30 each fiscal year. Money raised by students is to be expended for students. Transfer from one Activity Sub-Account to another may be board approved. Disbursements exceeding $600 in aggregate to any one individual or entity must be reviewed to determine if a 1099 MISC tax form is required.

Purchase orders Purchase Request completed prior to actual expense. The request should answer who, what, when and where. Given a PO # authorizing expense

E-forms & e-signatures

Expenditures Expenditures are used for allowable activities. Purpose of expenditure is documented and approved. School District policies are followed for Purchase Orders, approvals, etc. Procedures are in place to ensure no club, sport, or activity spends more funds than it has available. Confirm merchandise isn’t delivered to a staff member’s home. Travel advances for student activity trips.

Credit cards (p-cards) Sign a Memorandum of Understanding annually – ensures employees know what’s appropriate and what isn’t. Check out process – employees sign out the card with expected dollar amount and vendor name. PO is needed before purchase is made. Cards are kept in a secure location with limited access. Itemized Receipts – Receipts are turned in a timely manner with adequate support. Monthly Reconciliation Review – ensure expenditures are appropriate and adequate documentation is attached. Can’t be used for personal use to avoid paying taxes.

Fundraisers and gate receipts Fundraisers are approved to insure accountability for the funds being raised and how they will be used. PO request for start up money with an understanding of redeposit procedures. Pre-numbered tickets or receipts are always used when money is collected. Receipts are noted by type of tender i.e. cash, check, credit. Money counted at the end of each activity and turned in or if evening event put in night bank depository for depositing next business day.

Fundraisers

Collecting money Receipts are required when accepting money, either handwritten or electronically. Accepting Credit Cards reduces the risk of money coming through the school. Deposit are made daily unless the total amount collected by the entire District is less than $100 then can be deposited upon the collection of $100 or at least weekly.

reconciliation Review receipt sequence. Are all the receipt numbers accounted for? Bank Reconciliations performed monthly with daily review of online bank account information. Separation of duties from who receipts and reconciles.

Internal controls Effective controls reduce the risk of loss protects the ones fiscally responsible, ensure data is accurate, financial statements are reliable, and laws and regulations are complied with. For Separation of Duties the same person receipting money isn’t reconciling the bank statement or writing checks.

Sanctioning Parent Organizations and booster clubs Purpose is to assist and support the school in recognizing and promoting student’s activities. The principal will ensure the organizations’ goals are in compliance with district policies. The superintendent recommends to the board of education as a viable booster club or parent organization. Clearly identify the organization as a parent organization or booster club separate from school district student organizations and will provide details of structure of the organization: Officers and their duties Election of Officers and term limits Purpose and goals Dues structure Intended use of funds generated by the organization The organization must include one representative from the school faculty as a sponsor. Must maintain bank, financial, and tax exempt status separate from the school.

Questions/issues