HOT TOPICS IN FINANCE  Presented by: Jessica Annis & Christie Vuleta

NEW TOPICS FOR FY15  Redbook Updates  Fund 22  District Activity funds  Travel Policy  Munis Workflow  Contract Guidelines/Fee Waiver

REDBOOK PURPOSE  Purpose:  Protect funds raised by students  Protect students against funding responsibility

REDBOOK- FUNDS CAN BE SPENT ON? operating costs (same rule as prior Redbook version)  School activity funds shall not be expended for operating costs (same rule as prior Redbook version)  Must exclusively benefit student clubs or organizations  Cannot be used to support the district’s own programs (GAAP)  Go back to the purpose of the Redbook

REDBOOK- OPERATING EXPENDITURES  Operating transactions are incurred in the course of the operating activities of the institution  “It’s what we’re here to do”  Anything supporting regular operations

OPERATIONAL VS. DIRECT STUDENT BENEFIT  Even if there is direct student benefit, you cannot use school activity funds to pay for expenditures which are operational in nature

REDBOOK- OPERATING COSTS EXAMPLES  Renovation or maintenance of school facilities or buses  Additions or improvements to buildings or grounds  Furniture for offices  Library Books  Professional development  Textbooks for general use  Salaries for district-created positions  Substitutes incurred in normal course of business  If paid with school activity funds, driver salary/benefits and fuel only  Cannot pay for maintenance or depreciation of school bus unless used only by the student group  Example: charter bus rental  iPads  Software License

 It’s Not “Can I?”  It’s “How Can I?”

FUND 22  What is Fund 22?  Certain student activity funds deposited at the district level.  District Activity Funds are not subject to Redbook spending regulations.  Funds will be deposited into the schools bank and entered into the CPA program in a “sweep” account.  The sweep account must contain no expenses other than the sweep to the district.

STUDENT ACTIVITY DISTRICT ACTIVITY  Must be deposited at the school level  Raised by student fundraising  Expended with input from student groups  Can be deposited at the school or the district  Raised by school, district, or staff  Expended with input from staff

POTENTIAL STUDENT ACTIVITY FUNDS  Funds specifically raised by student groups  Expended by student groups Chorus Club Debate Team Class of 2016 Beta Club Cheerleading Club Band FFA

POTENTIAL DISTRICT ACTIVITY FUNDS FUND 22  Support from co-curricular and extra-curricular activities  Not raised and expended by student groups Gate receipts Book fair Locker fees Parking fees School plays Field trips Picture sales Other commission sales

SCHOOL BANK ACCOUNTDISTRICT BANK ACCOUNT  School Activity Funds  Subject to Redbook  No operational expenditures  District Funds  Not subject to Redbook  Any other school related expenditures Narrow Expendability Increased Flexibility

FUND 22 - TESTS  Redbook test: Is the expenditure operational in nature? If so, can’t use school funds  District test: Does the expenditure have an “school related purpose”? If so, you can use district funds

FUNDRAISING  You need a separate decision paper and Principal signed F-SA-2a form for each school wide fund raiser or Booster Group school wide Fundraisers.  In the Decision Paper, please include the projected amount of funds to be raised and if students will be offered incentives to sell items.  Send the Decision Paper in Microsoft Word to Gary Milby by by the 1 st of the month so it can be reviewed and put on the Board Agenda.  Include the principal signed F-SA-2A form. Make sure you fill out the section on Purpose of Fundraiser. Sponsor of the activity should fill out any appropriate F-SA form for fundraising, ticket sales and inventory not the school bookkeeper.  Scan it and send to Associate Supt Finance ( Gary Milby) in the same .  Do not put a hard copy on the pony. I need them electronically so they can be posted on the Board Agenda.

FUNDRAISING  Review Attached Policy 9.33 Fund Raising Activities  All school wide fund-raising activities, including the proposed use of the funds, must be approved by the Board. Requests must be channeled through the Principal and Superintendent.  School wide school ‑ sponsored fund ‑ raising activities are restricted to school pictures and library book fairs. Copies of the signed contract shall be filed with the Superintendent.  All other fund-raising activities, including the proposed use of the funds, shall be approved by the Principal or a designee.  (Please remember that student fund raising activities: (a) cannot be deposited into the “Sweep” School Activity Account to be transferred to Fund 22; (b) cannot be used for operational purpose, (c) can only be used on the purpose for which funds were raised.)  R ESTRICTIONS : D OOR - TO - DOOR SALES OR SOLICITATIONS SHALL NOT BE MADE BY STUDENTS FOR ANY FUND - RAISING ACTIVITY.  Please make sure a F-SA-2B form is completed once the fundraiser is completed. This should be kept in the folder with the fundraiser as part of the required documentation.

WORKFLOW  Mass quantities of purchase orders may require a login to Munis to approve, instead of .  Check junk mail folder in .  For month end reasons all purchase orders need to be approved on the last day of the month timely to get posted.  You may contact Jessica Annis for temporary approvers or an alternate approver in your absence.  Please contact Jessica Annis or Sarah Decker for login information or password reset.

HCS- TRAVEL POLICY  Travel procedures:  Requests for reimbursements from district funds should be filed within sixty (60) days of the trip with the exception that June travel must be filed by July 10 of new fiscal year.  Receipts are required for all reimbursements. Receipts are defined as any preprinted invoice, from a hotel, motel, restaurant or other establishment, showing the date of service, the amount charged for the service, the location where the service was performed and a description of the expenditure.

HCS- TRAVEL POLICY  0581 Travel Mileage - Amounts paid for expenditures for mileage associated with staff travel for the school district. ALL MILEAGE INCLUDING OUT OF DISTRICT IS CODED TO  0585 Travel - Meals- Amounts paid for expenditures for meals associated with staff travel for the school district. Receipts required and per diem rates applied.  0586 Travel – Hotels- Amounts paid for expenditures for hotels associated with staff travel for the school district.  0589 Travel – Other- Amounts paid for expenditures for other staff travel which cannot be classified elsewhere within the series. Examples: Taxis, Parking Fees, Airfare, & Tolls.

FEE WAVIER UPDATE  Household will either fill out the Free and Reduced Meals Application or the EBF (Educational Benefits Form).  Fee Waiver Guidelines 

DONATING TO SPECIFIC STUDENTS  Cannot be done through the school accounts  “Donations” can be made directly to parents/students  Will not be tax-deductible to donor  Donations may be made for fee waivers in general “ All student fees and charges shall be adopted by the board. The fee shall remain in place until modified or removed by board resolution. All student fees adopted by the board shall be used for the purposes set forth in the motion and shall not be spent for any other purpose.”

CONTRACTS  No person shall make an oral contract obligating HCS.  No work can be initiated prior to the contract being signed by all parties.  According to KRS, a contract shall be no longer than one year.

CONTRACTS SIGNED BY PRINCIPALS  The Board shall, through policy, authorize the Principal to enter into the following types of contracts:  Fund ‑ raising endeavors (i.e., picture sales, vending machine leases, T ‑ shirt sales, etc.)  Lease/purchase of equipment such as copiers, service contracts, telephone systems.  All contracts listed above shall be reviewed by the Finance Department (Associate Superintendent/Finance Director) prior to signing. HCS Contract Guidelines