MISD Activity Account Training

Course Description This training will provide an overview to effectively manage school activity fund financial resources. Overview School Activity Funds – 865/461 and Responsibilities Fundraising Sales Taxes Deposits Accounts Payable Purchasing & Pcards Travel Reimbursements Account Coding and Budget Reports

Campus Activity Funds vs. Student Activity Funds Campus Activity Funds – Fund 461 Funds generated by vending machines, concessions, campus fundraisers, commissions from school pictures, etc. Includes sub-accounts for library, grade level, or other groups not defined as a student club or organization Financial expenditures rests with Principal or staff member Funds are centralized through the Business Office

Campus Activity Funds vs. Student Activity Funds Student Activity Funds – Fund 865 Funds generated by bona fide student clubs (charters, bylaws, officers, etc) Members and sponsors of the student group or club must approve expenditures Ultimate financial decisions should rest solely with the students Funds are centralized through the Business Office

Activity Account Responsibilities Principal is ultimately responsible for collection, disbursement, and control of all activity account monies Proper accounting and administration of fund transactions Expenditure of funds in compliance with applicable state laws, MISD Board Policy, and administrative guidelines Adequate training and supervision of all personnel designated to administer activity funds Ensure money is not overspent or lost due to carelessness, theft, or fraud

Activity Account Responsibilities Other Staff Members (coaches, librarians, teachers, sponsors) Ensure that the money is not overspent, causing a negative balance in their respective account, or lost due to carelessness, theft, or fraud Comply with district procedures pertaining to accounting for funds, cash handling, preparation of deposits and ensuring deposits are made timely – within 3 days from date of checks This responsibility also includes, but is not limited to, developing fundraising plans, monitoring the financial position of the activity fund, reviewing the accuracy of their account’s monthly financial report and the safeguarding of activity fund money until it is deposited by the admin. asst. or bookkeeper

Activity Account Responsibilities Administrative Assistant or Bookkeeper Maintain an adequate supply of deposit slips and deposit bags Verify deposit amounts and forward activity fund deposits to the Business Office in a timely manner Provide the auditor with accurate records/documentation during yearly audits Review monthly activity account printouts for accuracy Enter purchase order requisitions and check requests into Skyward Ensure all requisitions and check requests have the appropriate documentation Review all forms sent to the Business Office for completeness and accuracy

Fundraisers Fundraising Activity Application (AF- 108) must be completed and approved by the principal and business office at least 30 days prior to the proposed activity The campus admin. asst. or bookkeeper is responsible for keeping a calendar of all approved campus fundraising activities A copy of completed Application (AF-108) will be provided to sponsor and admin. asst. or bookkeeper

Fundraisers Clubs and organizations are responsible for paying for all of the costs associated with a fundraising event A principal’s/sponsor’s first responsibility is to pay the fundraiser vendor once the funds are available and an invoice has been received A principal/sponsor should never overspend fundraiser proceeds, thereby causing the activity account to have insufficient funds to pay the fundraiser company All fundraiser invoices must be paid within 30 days after they are received

Fundraisers Principals/Sponsors should keep in mind that they are only allowed 2 tax-free fundraisers per school and per bona fide club per calendar year (not school year) and should plan accordingly

Fundraisers Fundraising activities are not confined to regular school hours; however, they are considered an extension of the school program Fundraising should contribute to the educational experience of students, and should not conflict with the instructional program Fundraisers should not compete with the School Breakfast or School Lunch program

NOT a Fundraiser PTO/Booster Club fundraisers are defined as fundraising sales/events where the parents are the sellers of the merchandise or actively participate in the fundraising event Examples: concession stands Funds raised from such fundraisers belong to the PTO/Booster Club responsible for raising these funds and must be deposited into the PTO/Booster Club bank account – not an MISD account

Fundraiser NOT allowed School districts are not qualified to hold raffles as fundraisers according to the Texas Attorney General

No Cash Gifts No cash prizes can be awarded for any fundraiser This includes gift cards

Sales Taxes Exempt Organization As a school district authorized by the State of Texas, Manor ISD is exempt from paying sales taxes on purchase of goods and services used for educational purposes Employees will NOT be reimbursed for sales taxes paid on individual purchases, even if the items are for use by the District The Manor ISD tax identification number CANNOT be used by employees, parent groups, patrons, or other organizations to secure exemption from sales taxes under any circumstances (personal use items or services)

Sales Taxes The purchase, lease, or rental of a taxable item is exempt from tax when: The item is directly related to the educational purpose of the school and The item remains school property and ownership does not pass to an employee, student, or other individual and The school or employee pays for an item; and The vendor is provided with a Texas Sales Tax Exemption Certificate or Purchase Order issued by the District

Sales Taxes Non-Taxable Sales The following are not taxable, no matter how many sales occur during the year: Food, soft drinks, candy Must not compete with the School Breakfast or School Lunch Program Fees and admission tickets, including athletics, play, and dance tickets, provided that no part of the proceeds benefit an individual Newspapers sold by subscription or single copy Club memberships

Sales Taxes Non-Taxable Sales (continued) Passbooks/Discount Cards Meals purchased by the school for athletic teams, bands, etc. on authorized school trips are exempt from the sales tax if the school contracts for the meals The school must pay for the meals and provide the eating establishment with a Texas Sales Tax Exemption Certificate

Sales Taxes Taxable Sales Items which the school purchases and later sells to students that are NOT used in the classroom or during school activities, or that become the students’ personal property for use outside the school Example: Spirit items, athletic programs, clothing/uniforms, t-shirts, pencils, pens, paper, kindergarten mats, music recorders, school store items, and other supplies sold during the year

Sales Taxes Taxable Sales (continued) Fees for materials when the end product becomes possession of the student Student publications such as yearbooks and athletic programs Any materials used in the classroom if the end product becomes a possession of the student, such as dress material or art supplies Books sold to students at book fairs

Sales Taxes Fundraising Sales An exempt organization is not required to collect sales taxes on taxable items sold during qualified one-day tax- exempt fundraisers One day means 24 hour consecutive hours; delivery should be made on a single day. In the case of pre-paid sales, the date the items are delivered by the vendor to the seller is designated as the one-day for purposes of the tax-free sales

Sales Taxes Fundraising Sales Each student activity bona fide club, each school, and the District itself are considered separate exempt organizations, and each may hold 2 tax exempt sales per calendar year (not school year) provided the one-day rule is met There is a $5,000 limit on the sales price of any one item to be eligible for tax-free treatment if sold during a one-day sale

Deposits Payments should never be made for any expense using cash! All receipts must be deposited into the District’s approved Depository Bank Deposits should be prepared and forwarded to the Business Office daily or locked in a campus safe

Deposits Any money received may not be taken home for “safekeeping” or left overnight in a desk drawer or other vulnerable location All money should be turned into the Business Office or stored in the school safe

Deposits Campuses should not accept temporary bank checks or postdated checks as payment for items sold during a fundraiser or for any other type of payment Cash must not be replaced with an employee’s personal check and needs to be deposited in the form received

Deposits – AF 104 All information needs to be entered into the Tabulation of Monies Form (AF-104) All sponsors must completely fill out the AF-104 Form and record the funds being deposited before bringing them in to the admin. asst. or bookkeeper It is not the responsibility of the admin assist or bookkeeper to fill out this form and count the funds for the sponsor initially.

Deposits – AF 104 The description of the type of funds being deposited MUST be written in the Money Collected For space Enter the currency and coin amounts on the appropriate line items of the tabulation form The sponsor must sign the form before it is forwarded to the admin. asst. or bookkeeper All checks should be endorsed with a Manor ISD endorsement stamp All checks should be copied for back-up documentation. This is to be done by the sponsor

Deposits The admin. asst. or bookkeeper will verify all funds accompanying each deposit form in the presence of the sponsor, sign the form, and prepare a bank deposit slip in triplicate Before placing the funds in a sealed bag, the admin. asst. will record the bank bag number on the deposit form and deposit slip The admin. asst. will place the white copy of the deposit slip in the bank bag with the funds and seal the bag The yellow copy is stapled to the bank bag The pink copy is the campus copy The admin. asst. will attach a scanned copy of all forms and documentation to the deposit in Skyward

Deposits Sponsor will receive a copy of AF-104 as a receipt. All activity fund deposits should be turned into the Business Office daily If a deposit cannot be made for some reason, the funds need to be placed in a safe and locked away NO FUNDS should remain on a campus over the weekend or holiday break

Deposits Deposit bags should be filled out correctly Use coin bags for large amounts of coin In excess of $10.00 or excess weight Separate deposits: 1 bag = 1 deposit slip = 1 documentation bundle Reconcile your deposits that were sent to the bank to your accounts

Accounts Payable Check Requests must be submitted online through Skyward Documentation must be uploaded and attached Original invoice must be sent to the Business Office for check processing

**Deadline for paperwork/approvals is Friday by 5 pm** Accounts Payable Forward all Invoices to Accounts Payable as soon as possible **Deadline for paperwork/approvals is Friday by 5 pm** **Checks available for pickup from Central Office after 9 am on the following Friday**

Purchasing Purchase Requisitions should be entered into Skyward prior to making any purchase Merchandise must not be ordered from a vendor until the PO has been approved by both the Principal and Purchasing Office

Purchasing Purchases should be made from an approved vendor, from a Purchasing Co-op (BuyBoard, TCPN, etc.), or with three quotes from vendors not on Co-op

Purchasing The district has a quotation threshold for purchases of $5,000 or more Orders over this limit, that have not been bid, will need to have a minimum of 3 formal quotes on an “MISD Quote Summary”, 1 quote if on Co-op Exceptions would be sole source purchases and items purchased from a bid/Co-op Purchases over $25,000 will require Board approval

Purchasing New Vendors If you are using a vendor with no W-9 on file, contact the vendor for a current W-9 New vendors will also need to complete a Conflict of Interest Questionnaire Form Vendors can only be added to Skyward by Purchasing Be sure to get purchasing all necessary forms to add the vendor before requesting payment

Purchasing Sponsors making unauthorized purchases or purchases prior to securing a purchase order will be held personally liable for payment of such agreement

Purchasing Requisitions will be reviewed for the following items Overall completeness and accuracy Proper account coding Availability of funds Proper approvals An admin. asst. should not sign on as Principal to approve POs Adequate description and attachments Failure to properly complete one of the items may result in a denied requisition

Purchasing Changes to requisitions can be made prior to Principal approval Once PO is approved, changes will not be made to pricing For additional products, complete additional PO For changes to dollar amount after approval, begin process again and original requisition will be deleted by Business Office

District PCards Used for nonroutine, small purchases Pcard is not intended to avoid or bypass appropriate purchasing or payment procedures District Pcard agreements must be signed annually for use of Pcard by cardholders (administrators)

District PCards Privileges may be revoked if an employee: Fails to turn in all credit card receipts to the Business Office in a timely manner Does not turn in itemized receipts Loses credit card Abuses of credit card by misappropriation of funds or unauthorized purchases Non-educational Illegal Personal Use Alcohol or Tobacco Gift Cards

Employee Reimbursements Reimbursements should be a last resort and be made on RARE occasions Reimbursements are limited to $250/month per individual Any amount over $250/month will not be reimbursed Reimbursements should be pre- approved and claimed within 60 days of the purchase

Employee Reimbursements Receipts Itemized receipt is required – not the credit card authorization receipt An Auditor needs to see the items that were purchased Do NOT highlight anything on the receipt – use a pen to circle the amounts instead It is best to have purchases for the school on a separate receipt from personal purchases Make a copy of the entire itemized receipt and attach it with the check request in Skyward The original receipt should include the date

Travel Follow District travel guidelines set by Business Office when traveling using activity accounts Travel Request Forms will not be approved if the account does not have significant funds to cover travel expenses Hotel Receipt Itemized receipt is required upon return. Charges must be detailed to show no state occupancy tax or personal charges were paid.

Travel Registrations – Complete a requisition or online check request Attach list of students to requisition or check request Mileage – Attach mileage from Mapquest or GoogleMaps from campus (not home) to the address of the event An advanced check for student meals will be made out to the sponsor Original itemized receipts for student meals are to be turned into business office. Any amount owed back to the student group should be paid via cash, check or money order made out to Manor ISD

Budget Overview – Account Code Fund First three digits in the account code Activity Funds 461 – Campus Activity 865 – Student Activity xxx-xx-xxxx-xx-xxx-x-xx-xxx Fund Function Object SubOb Org Year PIC Local

Budget Overview – Account Code Sub-object Two digits that identify the purpose of the transaction Common Areas 11 – Principal Discretion (Principal Account) 53 - Art 15 – Football 60 – 1st grade 17 – Basketball 61 – 2nd grade 20 – Volleyball 62 – 3rd grade 23 – Cheerleading 90 – Library/Bookfairs 25 - Track 92 – Sunshine Account 32 – AVID 94 – Yearbook/Journalism 50 – Band/Music 95 – Student Council 51 – Choir 96 – Aerospace/Robotic xxx-xx-xxxx-xx-xxx-x-xx-xxx Fund Function Object SubObj Org Year PIC Local

Budget Overview – Account Code Organization Code Three digits that identify campus or department 001 – Manor High School 108 – Pioneer Crossing Elementary 004 – New Tech High School 109 – ShadowGlen Elementary 041 – Manor Middle School 111 – Lagos Elementary 042 – Decker Middle School 043 – New Tech Middle School xxx-xx-xxxx-xx-xxx-x-xx-xxx 101 – Manor Elementary Fund Function Object SubObj Org Year PIC Local 102 – Bluebonnet Trail Elementary 104 – Decker Elementary 105 – Blake Manor Elementary 106 – Presidential Meadows Elementary 107 – Oak Meadows Elementary

Budget Overview – Account Code Local Code Three digit code refers to the department responsible for the budget Commonly used in Campus and Student Activity Accounts 101 – Manor High School 142 – Decker Middle School 156 – Presidential Meadows Elementary xxx-xx-xxxx-xx-xxx-x-xx-xxx Fund Function Object SubObj Org Year PIC Local

Budget Reports Budget reports can be obtained directly from Admin. Assts./Bookkeeper Should be looked at monthly throughout the year Sponsors should receive monthly reports and balances on accounts, specifically activity funds from Admin. Assts. or Bookkeepers Reconcile Fundraisers, Sales Taxes, and Purchases

Any Questions? Thank you!