1. Activity Fund Training January 25, 2017
PRESENTERs:
Hilda Rendon, Executive Director of Finance and Operations, Jessica Montalvo, Internal Auditor, & Bertha Esparza, activity fund bookkeeper

2. Activity Funds – Definition & Purpose
Monies accumulated from the collection of student fees and fundraisers
Used to promote the general welfare of each school and the educational development and morale of the students
Two types: Campus Activity Funds and Student Activity Funds

3. Campus Activity Funds
Principal Accounts (Fund 461) contains money raised locally at the campus or donated to the campus, belong to the Campus and/or District.
Principal Activity Fund Accounts are considered administrative accounts and must adhere to State and Board Policy, District Regulation, and are thus subject to the procurement laws
Principal Activity Fund Accounts must be treated in the same manner as the General Fund campus accounts (Budgeted allocated funds)
CFD (LEGAL) Activity Funds Management: Discretionary expenditures of local funds to be related to the District’s educational purpose
The Club Sponsors for the Principal Accounts include the Campus Principal as well as departmental people
Principal exercises managerial authority over these funds

4. Student Activity Funds
Student Accounts (Fund 865) contains money accumulated from the collection of student fees and approved fundraising activities. Student Activity Fund monies belong to the various student groups and not the Campus and/or District.
Funds collected by the student groups shall be used only for the purposes authorized by the organization
Students have the sole responsibility for deciding how to spend the money
Student Club Accounts must have club charter (bylaws) and elected officers (must keep meeting minutes)
Meeting minutes should include authorization of expenditures
Club Sponsors for the student activity funds must be faculty members who are full-time employees.
District has custodial responsibility

5. Responsibilities for Activity Funds
Principal
Bookkeeper/Principal’s Secretary
Sponsor
Business Office
Note: Principal’s are not responsible for assets held by parent or booster organizations. External funds cannot be commingled with the Activity Funds.

6. Responsibility of Principal
Oversight of Campus Activity Funds (Principal Accounts) & Student Activity Funds - CFD (LOCAL) Activity Funds Management
Directly responsible for proper collection and disbursements
Safekeeping of Money (i.e. Safe, Vault)
Training and supervision of all personnel designated to administer activity funds
Approval of expenditures in accordance with state laws, board policy and district regulations
Approval of fundraisers and related forms

7. Responsibility of Bookkeeper
Maintain the accounting records
Maintain a distribution record of all receipt books issued to sponsors and personnel
Deposit on a timely basis (daily or weekly)
Review club balances on, at least, a monthly basis
Report fund balances to sponsors on a monthly basis
Report any variances to Business Office

8. Responsibility of Club Sponsor
Club Sponsors are responsible for:
Monies collected
Merchandise purchased
Exercising maximum control when performing fundraisers
Net profit/(loss)
Deposits and expenditures
Must be in compliance with all procedures stated in the Activity Fund Manual

9. Responsibility of Club Sponsor - continued
Deposits:
Club Sponsors are responsible for preparing the Activity Fund Detailed Deposit Slip
Submit to Bookkeeper
Detailed Deposit Slip
White  Business Office
Yellow  Principal’s Secretary/Bookkeeper
Pink  Club Sponsor

10. Responsibility of Business Office
TxEIS posting deposits and checks
Process activity fund checks
Variance inquiries to campuses
Monthly bank reconciliation
Sales tax reports
Final approval fundraisers

11. Basic Records Deposits Slips (Frost Bank)
Activity Fund Detailed Deposit Slip
Receipt Books
Voucher Request Form
Fund-Raising Application for Activity Funds Form
Activity Funds Operating Report Form
Club Statements
Bank Statements: Reconciled by Business Office
Activity Fund Manual

12. Procedures for Receipts
All monies received must be receipted
Sponsors must have their own receipt book
Sponsor issues receipt from book to students
An original (white) receipt to the Student
First copy (yellow) to the Bookkeeper
Second copy (pink) remains in receipt book
Bookkeeper issues receipt to Sponsor for total amount
An original (white) receipt to the Sponsor/Parent/Student
First copy (yellow) to the Business Office

13. Procedures for Deposits
Teachers, librarians, club sponsors must deposit with bookkeeper weekly or when amount reaches $100
All money must be secure overnight in the campus safe
Sponsor
Prepares Student Activity Fund - Detailed Deposit Slip, in triplicate
An original (white) Business Office
First copy (yellow)  Bookkeeper
Second copy (pink)  Club Sponsor
Submits to Bookkeeper
Bookkeeper verifies amount

14. Procedures for Deposits -continued-
Bookkeeper
Prepares Student Activity Fund - Detailed Deposit Slip RECAP, in triplicate
An original (white)Sent to Business Office
First copy (yellow)  Kept by bookkeeper
Second copy (pink)  Kept by bookkeeper
Prepares Bank Deposit Slip, in triplicate
An original (white)Sent to bank
First copy (yellow) Sent to bank & returned to Business Office
Places deposit in Tamper Proof Bag
Schedule SBCISD PD for deposit pick-up
Submits completed Student Activity Fund - Detailed Deposit Slip RECAP to the Business Office for recording in TxEIS

15. Procedures for Deposits -continued-
Business Office
Records deposit in TxEIS
Must be in Business Office no later than 3:00PM for processing. After 3pm will be processed the next business day
The original copy of deposit is retained by the bank. The duplicate copy is validated and returned to the Business Office.
Business Office will post to TxEIS using the bank validated deposit slip.
The sum of the amounts of the supporting cash receipts must agree with the amount of the deposit slip.

16. Donations Recipient completes Gift/Bequest Form
Bookkeeper files Gift/Bequest Form
External donor website are not allowed.
Go Fund Me
Donors Choose
Adopt a Classroom
Fuel my School
Pledge Cents

17. NSFs Business Office inputs negative deposit into TxEIS
Copy of NSF will be sent to Bookkeeper
Bookkeeper sends issuer a Returned Check Notice via Certified Letter-Return Receipt
Name, Address, Phone #, Check #, Amount & Date
A copy of returned check
The new amount with $30 processing fee
Issuer has 10 days from Returned Check Notice to make restitution.

18. NSFs - continued -
If not paid within 10 days, Bookkeeper submits to District Attorney
Submission to District Attorney:
Image of returned check or legible, certified photocopy (Request original from Business Office)
The signed return receipt from the certified letter or the unopened, unaccepted letter
A copy of the Returned Check Notice
Complete the Worthless Check Affidavit form found at
 Staple and place all NSF documentation in a secure file. Submit the “Worthless Check Affidavit” form and all required documents to the Cameron County District Attorney’s Office. Make sure to make copies of all documentation that is sent to the District Attorney and maintain a log of all checks submitted.

20. Expenditures Processed through the Business Office
Paid by check from the activity fund bank account
Sufficient funds need to be available in the appropriate activity account
Principal approves all voucher requests

21. Expenditures - continued -
Purpose of the form
Provide authorization of the expenditure
Document the purpose of the expenditure
Identify the account to be charged
Verify adequate funds exist to cover the check

22. Expenditures: Voucher Request Form

23. Expenditures: Voucher Request Form
Voucher Request Form Procedures
Club Sponsor must complete, to include all required signatures & account number
Fund (461 or 865), Organization code (Campus #), & Sub- object code (Club account)
Use qualified vendors
Original quotes/invoices/receipts must accompany the form the Business Office
Checks are processed every Tuesday and Thursday
Forms should not be pre-signed.

24. Expenditures: Payments to Non-Employees for Contracted Services
For employment of non-district personnel as a consultant/instructor the Non-District Consultant Contract form must be completed prior to the services being rendered.
The form should be attached to the Voucher Request Form and New Vendor Listing Form
Vendor/Consultant needs to complete the Internal Revenue Service W-9 Request for Taxpayer identification Number and Certification and submit to campus Bookkeeper.
Bookkeeper should attach W-9 to the Voucher Request Form.

27. Fundraiser Definition
A fundraising activity may be defined as any activity involving the participation of a student body or school-recognized group undertaken for the purpose of deriving funds. When fundraising activities are in the name of the school, all funds become school funds, belonging to the school sponsored group responsible for raising the money. All monies acquired through fundraising activities are considered public funds. Discretion is advised as public funds are subject to public scrutiny.

28. Fundraiser Compliance
Sponsors must be in compliance with all fundraiser procedures.
Principals are responsible for enforcing compliance.
Required Fundraising Forms:
1. Fund-Raising Application for Activity Funds Form
2. Activity Funds Operating Report Form
Each secondary campus & bona fide club, as approved by the principal, will be allowed to conduct a maximum of two (2) fundraisers per year.
Each elementary campus will be allowed in-house fundraisers
Only high school varsity teams may conduct sales of co/extracurricular support posters. Reference: FJ (LOCAL) - GIFTS & SOLICITATIONS
Prohibited fundraisers: Raffles, Bingos & Door-to-Door Sales

31. Food Fundraisers
USDA Smart Snacks in School Standards (effective 7/1/2014) defines the school day as the period from midnight to 30 minutes after the end of the official school day.
No food sales of any kind will be allowed during the school day.
Food sales after the end-of-day bell but before the 30 minutes, need approval from Child Nutrition Program
Why? CNP needs to determine compliance with Texas Department of Agriculture (TDA) food standards.
An response will be sent to campus originator
If approved, this should be attached to the Fundraiser Application for Activity Funds form.

32. Food Fundraisers Compliance
TDA requires the District to keep complete and accurate documentation of records for competitive beverages and food sold.
Campus is responsible for maintaining this documentation
Should be kept in the Principal or Principal’s Secretary Office
This Documentation is the District’s method to demonstrate that food and/or beverage items sold met the Competitive Food Nutrition Standards
Documentation includes: 1. nutrition value calculation, 2. nutrition fact labels, 3. invoices and 4. form or records indication portion size and number of servings

33. Food Fundraisers Compliance Smart Snacks Calculator
The Smart Snacks Calculator is located on the District’s website
Departments  A-E  Child Nutrition Program  Smart Snacks Calculator (left 3rd icon down)

34. Food Fundraisers Compliance Smart Snacks Calculator
The Smart Snacks Calculator results MUST be kept on file, see sample below:

35. Sales Tax
Purchases made by the District are exempt from sales tax if they are intended for District use
Students and employee are not exempt from the sales tax, so the resale of merchandise may be taxable
Each campus and SAF club may have two (2) one-day tax-free sales per year
Note: Parent/Booster Organizations are strictly prohibited from using the District’s Sales Tax Permit Number

36. Taxable vs. Non-Taxable Sales
Some examples of:
Taxable Sales: School supplies, spirit items, clothing, yearbooks, athletic programs, yearbooks purchased by students
Non-Taxable Sales: Car washes, discount cards, dues, fees/fines, food sales, tickets, parking permits and student IDs
Tax-free sales: any taxable item sold on one of the two-tax free sales days (may count prepaid orders as one day or delivery of goods as one day)
Book Fairs – do not qualify as one-day tax free sales as the school is not the actual seller but merely an agent for the vendor. As an agent, the school receives commission only.

37. Sales Tax
The sales tax rate is 8.25% of sales. You may sell a product at a price that includes the sales tax or add to the sales price to collect the tax.
Adjusting the selling price to include sales tax:
Sale price $10.00/ = $9.24
Sales revenue is $9.24 and the tax is $0.76
Add the tax to the price of product:
Sales price $10.00 X = $.083
Sales revenue is $10 and the sales tax is $0.83

38. Club Balances TxEIS Login Campus Activity Fund (461)
TxEIS Login  Finance  Inquiry  General Ledger Inquiry
Input Fund, Organization (Campus code)
Can narrow by sub-object (Club code)
Student Activity Fund (865)
TxEIS Login  Finance  Report  Journals, Checks, Detail Ledgers  FIN – Student Activity Fund Report
Can narrow by sub-object (Club)
Can select “Y” for “Page Break by sub-obj (Sponsors/Club Report only)?”
This always to print all SAF club reports, on separate pages, at once

39. Reminders Clubs are allowed two (2) fundraiser per year
Clubs (bona-fide) are allowed two (2) tax free days
Fundraisers are limited to a duration of two (2) weeks
Sponsors & Bookkeepers should keep copies of all activity fund documents for their records
Care must be exercised when handling cash
Inventory records should be kept as appropriate
No raffles, bingos, or door-to-door sales allowed
No gift cards allowed from CAF (461)
External donor websites Go Fund Me, Donors Choose, Adopt a Classroom, Fuel my School and Pledge cents are not allowed.

40. Parent/Booster Organizations
Separate entity of the District
Do NOT commingle Parent/Booster funds with Activity Funds
Must obtain a Federal ID number to establish a checking account, cannot use the District’s Federal ID number.
Principal or designee cannot direct parent/booster organization
Cooperation should exist between campus and organization
Principal or designee should have understanding of fundraising
Campus or student group should see benefit from such organizations
Are strictly prohibited from using the District’s Sales Tax Permit Number

41. No Cash Transactions Cash transactions are prohibited.
All monies must be deposited and a voucher request for any expenditures.

42. Compliance to policies & procedures!
Internal Audit
When we audit, we look for:
Compliance to policies & procedures!

43. References Board Policy Activity Fund Manual, 2016-2017 Forms
Activity Fund Manual,
Forms

44. Questions or Comments?