FINANCIAL PROCEDURES FOR LOCAL SCHOOL ACCOUNTING Natalie Young, Chief School Financial Officer Dr. Jacqueline Brooks, Superintendent of Education

Purpose The purpose of this session is:  to share guidelines and procedures for local school financial operations, including budgeting, collecting and receipting funds, and balancing budgets  to learn how to avoid audit findings.

The Principal is directly responsible for the handling of all monies received at the school. It is the ultimate responsibility of the Principal for any shortages resulting from the failure to follow, or to require others to follow, the financial procedures for handling of school monies.

General Rules Regarding Financial Affairs (subject to an audit) 1. School funds will be receipted and deposited in the school account on a daily basis. 2. Expenditures will be paid by check and supported by proper documentation. 3. Purchases will be approved by the Principal (with a signed purchase order before the purchase is made). 4. Accounting records will be posted daily. 5. Bank statements will be reconciled monthly. 6. Monthly financial reports reflecting accurate balances and activities of the accounts of the school will be reviewed and approved by the principal.

RECEIPTING FUNDS  The Principal will provide pre-numbered receipt books to the teachers and other individuals who collect school funds. (The receipt books must have carbon copies.)  Receipt books should be secured, and a log must be maintained to track the receipt books by receipt numbers to individuals responsible for issuing the receipts.

RECEIPTING FUNDS CONT.  A teacher receipt should be completed and issued in numerical order at the time funds are received.  A teacher receipt should be issued after counting or verifying the amount of the receipt at the time the funds are actually received.

RECEIPTING FUNDS CONT. Manually prepared teacher receipts should contain the following: name of the individual delivering the funds amount of the funds received purpose of the funds received date the funds are received indication that funds are cash or money orders original signature of the individual receiving the funds and issuing the receipt.

RECEIPTING FUNDS CONT. (Other Procedures) 1. The original teacher receipt should be handed to the individual delivering the funds. 2. Voided receipts must be retained with receipt book (both copies). 3. Do not use correction fluid or erasures for mistakes. Instead, draw a line through it and make corrections. 4. Funds received must be secured upon receipt. 5. Do not cash checks with the funds received.

RECEIPTING FUNDS CONT. (Other Procedures) 6. No money should be left in the classroom overnight. The teacher is responsible for monies collected until turned in to the office. 7. The teacher receipt book or record and the funds collected should be taken to the office daily. 8. The teacher should wait for a Master Receipt to be prepared and then verify the information on the Master Receipt before leaving the office.

9. The teacher should retain the original Master Receipt. 10. The teacher should not hold funds until all funds for an activity, fundraiser, or any other purpose are collected. 11. The school is required to make a timely deposit, according to school board policy. 12. Teacher receipt books containing the receipt copies and unused receipts should be returned to the Principal’s Office at the end of the school year. RECEIPTING FUNDS CONT. (Other Procedures)

Sample Receipts

Question When should Sallie Jones turn the receipted funds/money in to the office?

Receipting Questions and Answers

1. A Master Receipt should be issued by the designated person after counting or verifying the amount of the receipts at the time funds are actually received from the teacher. 2.The person presenting the funds for receipt should wait for a Master Receipt to be prepared and verify the information on the Master Receipt before leaving the office. 3.The Master Receipt book or record and supporting documentation must be secured for audit. 4.The Master Receipt should also be issued for each check received by mail. 5.Funds received must be secured until deposited. Funds must be deposited daily. 6. The principal should consider establishing designated times to receive funds for the issuance of Master Receipts.

Sample Master Book Receipt

The next step includes depositing the funds. The secretary or bookkeeper generally makes daily deposits.

Forms Local School Budget Sheets Budget of Revenues Budget of Expenditures Cash Receipt Register Report on Sale of Tickets Activity Verification Report