WVDE-OSF
ACCOUNTING PROCEDURES
MANUAL
ACCOUNTING PROCEDURES
MANUAL
presented by:
Office of School FinanceWV Department of Education
WVDE-OSF
PresenterPresenter
Susan Smith, CPA, Coordinator [email protected] 304-558-6300 ext 3 The manual can be found online at
http://wvde.state.wv.us/finance/
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Accounting RecordsAccounting Records Pre-numbered receipt forms Transaction journal (receipts and
disbursements) Requisitions and pre-numbered purchase
orders Bank checkbook Bank deposit slips Monthly bank reconciliations and financial
statements Annual financial statements
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Principal’s ReviewPrincipal’s Review
The principal must review the monthly financial statement and sign it
By reviewing it, he/she can assess the financial situation at the school quickly– Journals are up-to-date and balanced– Cash has been reconciled– The school is not in a deficit situation
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ReceiptsReceipts
Pre-numbered receipts MUST be issued for all collections at the time moneys are collected with original provided to individual from whom moneys are received and a copy retained– Original recording of transaction– Protects both individuals– A single receipt with a supporting list may be
used when collecting moneys from a group– Voided receipts – mark void and retain both
copies– Receipts must be posted at least weekly
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Vending MachinesVending Machines
Recommendation – let the vendor stock If not, collections are to be receipted
and deposited into school account Prepare a profit/loss statement
periodically (p. 81 & p. 83) Remit consumer sales tax 75% of soft drink sales go to faculty
senate
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Gate ReceiptsGate Receipts
Pre-numbered tickets must be used if an admission fee is charged
Two individuals should be used (sell/take up tickets)
Tickets are to be torn in half and one half given back to the patron
Ticket reconciliation reports must be completed for each event
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Fund-RaisersFund-Raisers
Receipt and disbursement procedures apply
Profit/Loss Statement must be completed for each fund-raiser
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Child Nutrition CollectionsChild Nutrition Collections
Receipt written to each teacher collecting money at the time money is remitted – one for breakfast collections and one for lunch collections
If moneys are collected from parents, write receipt or use cash collection form
Ensure Summary Meal Report matches the collection amounts for each meal
Recommendation - centralized billing
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DepositsDeposits
Prepare in duplicate & retain a copy No cash disbursements or personal
checks cashed from collections Must deposit at $500 or weekly Checks must be listed separately Beginning and ending receipt
numbers must be shown
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Purchase OrdersPurchase Orders
Purchase order must be completed PRIOR to obligation of the funds
Pre-numbered, duplicate Retain a copy No purchases may be made from a fund
or account in excess of funds currently available
Signed by the Principal or designee Does not need to be the exact amount of
the purchase
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DisbursementsDisbursements
All disbursements must be made by check
All disbursements must be supported by an invoice or travel expense report
All checks require two signatures Never pre-sign a blank check
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Personal ServicesPersonal Services
All payments to individuals must be made through payroll process
UNLESS clearly shown an independent contractor
ONLY exception is athletic officials Report all payments for personal
services to central board office each year for 1099 reporting
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Other CashOther Cash Petty Cash
– Maximum is $50– Don’t cash personal checks– Receipts + cash must always equal the total
amount authorized– Replenish by a check made out to the principal
Starting Cash– Maximum is $500– Don’t cash personal checks– Amount of cash must always equal the total
authorized– Deposit back into bank when not used
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Authorized ExpendituresAuthorized Expenditures
All moneys are considered to be quasi-public funds and are to be expended for the benefit of the students at the school
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Unauthorized ExpendituresUnauthorized Expenditures
Contributions to charitable organizations are prohibited unless a fund-raiser is conducted specifically for that purpose
Purchase of food and drink for meetings
Purchase of service awards for employees
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Authorized/UnauthorizedAuthorized/Unauthorized
Appendix C provides a list of expenditures specifically authorized or unauthorized by the State Attorney General opinions or State Superintendent of Schools interpretations
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Bank StatementsBank Statements
Principal review the unopened bank statement for irregularities
Reconciliation must be performed as soon as possible
Reconciliation must be signed by preparer and principal
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SSAC TournamentsSSAC Tournaments
Deposit all proceeds into the school account
Establish a sub-account to track receipts and disbursements
All payments made for personal services must be through payroll process
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School Support OrganizationsSchool Support Organizations Procedures are to be established by each
county board. At a minimum each one:– That collects funds in the name of the
school must be approved by the board in advance
– Must have the approval of the principal for each fund-raiser that is conducted
– Must provide an annual financial statement to the principal
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School Support OrganizationsSchool Support Organizations Each is to have its own business
registration certificate and FEIN– Be officially organized with a set of
published by-laws– Prepare and make available written
minutes of each meeting– Maintain a transaction journal of all
receipts and disbursements– Establish proper accounting
procedures
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School Support OrganizationsSchool Support Organizations
If an organization does not wish to obtain it’s own FEIN, funds may be deposited into the school’s bank account
Follow all school purchasing procedures
Including unallowed expenditures
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School Support OrganizationsSchool Support Organizations
Boards have the authority to examine the financial records of all disbursements of all funds, including the operation of concession stands, fund raisers and gate collections
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Faculty SenateFaculty Senate
Each teacher is entitled to a $50 allotment– Check or allocation– Sales tax is allowed– No purchase orders required
Additional monies up to a total of $200 could be allotted to each teacher. Amounts above the $50:– Allocation method only– No sales tax can be paid– Approved purchase order prior to obligating the
funds is required– Monies not expended by year end go back into
faculty senate pool
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Faculty Senate (continued)Faculty Senate (continued)
A budget must be adopted (see sample form)
Individual balances could be restored from end of prior year with majority vote
Faculty senate checks must be signed by faculty senate designee and principal (or his designee)
Allotments for teachers who transfer stay with the original faculty senate
Monthly bank reconciliations and financial statements are required
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County PoliciesCounty Policies
BOE must include in local policy:– Number of funds to be maintained at
the schools– Whether high schools may sell soft
drinks during school hours (except at meal service times)
– Whether schools may obtain a purchasing card
– Whether schools may have petty cash, and the maximum amount (up to $50)
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County Policies (continued)County Policies (continued)
– Maximum amount of starting cash authorized for gate collections (up to $500)
– Procedures by which school support organizations are to operate
County or school may establish procedures for:– Concession sales– Vending machines
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RecommendationsRecommendations
Use a computerized accounting system– More efficient– Reduces chance for error– Standardizes the accounting function
at all schools Vending machines stocked by vendor Disallow the payment for merchandise at
time of delivery Centralized billing for Child Nutrition
Program
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QuestionsQuestions