HISD Sponsor Training Financial Procedures July 25, 2016

Course Description This training will provide an overview for sponsors to effectively manage their group’s financial resources. Overview Account Coding and Budget Reports Fundraising Deposits Sales Taxes Purchasing

Budget Overview – Account Code Fund First three digits in the account code Common Funds 199 – General Operating 263 – Title III 211 – Title I 410 – Instructional Material 224 – IDEA B 461 – Campus Activity 225 – IDEA B Pre-school 511 – Debt Service 240 – Food Service 865 – Student Activity 255 – Title II xxx-xx-xxxx-xx-xxx-x-xx-xxx

Budget Overview – Account Code Function Two digits that identify the purpose of the transaction Common Functions 11 – Instruction 34 – Student Transportation 12 – Library 35 – Food Service 13 – Curriculum & Staff Development 36 – Extracurricular (461) 21 – Instructional Leadership 41 – General Administration 23 – Principals 51 – Facilities Maintenance 31 – Guidance Counseling 52 – Security 32 – Social Work Services 53 – Data Processing/Technology 33 – Health Services/Nurse 61 – Community Services 00 – None (865/Revenues) xxx-xx-xxxx-xx-xxx-x-xx-xxx

Budget Overview – Account Code Object Four digits that identify the nature of an account Common Objects 61xx – Payroll 62xx – Contracted Services 63xx – Supplies 64xx – Travel/Miscellaneous (461 Activity Accounts) 66xx – Capital Outlay 2190 – Due to Student Groups (865 Student Activity Accounts) xxx-xx-xxxx-xx-xxx-x-xx-xxx

Budget Overview – Account Code Sub-Object Two digits that help track specific expenditures or programs Varies based on Function in Skyward xxx-xx-xxxx-xx-xxx-x-xx-xxx

Budget Overview – Account Code Organization Code Three digits that identify campus or department Common Organizations 001 – Hutto High School 703 – Tax Collections 041 – Hutto Middle School 747 – PIO 042 – Farley Middle School 748 – HR 101 – Hutto Elementary 749 – Finance 103 – Cottonwood Creek Elementary 750 – General Administration 104 – Ray Elementary 901 – Riverhorse Academy 106 – Veterans Hill Elementary 935 – Curriculum 107 – Norman Elementary 950 – Maintenance 121 – Nadine Johnson Elementary 955 – Special Education 699 – Summer School 965 – Technology 701 – Superintendent 975 – Daycare 702 – School Board 999 – District Wide xxx-xx-xxxx-xx-xxx-x-xx-xxx

Budget Overview – Account Code Fiscal Year One digit that identifies the fiscal year In Skyward, it will be 0 xxx-xx-xxxx-xx-xxx-x-xx-xxx

Budget Overview – Account Code Program Intent Code (PIC) Two digit code that identifies a specific set of students or specific program Common PICs 11 – Basic Education 30 – Title I, School Wide 21 – Gifted and Talented (GT) 32 – Pre-K 22 – Career and Technology (CTE) 91 – Athletics 23 – Special Education 99 – Undistributed (461) 24 – Accelerated Education 00 – None (865) 25 – Bilingual Education (ESL) 26 – Alternative Education (AEP) 28 – Disciplinary Alternative Education (DAEP) xxx-xx-xxxx-xx-xxx-x-xx-xxx

Budget Overview – Account Code Local Code Three digit code that helps track specific expenditures or program Commonly used in Campus and Student Activity Accounts 100 – Principal’s Activity Account xxx-xx-xxxx-xx-xxx-x-xx-xxx

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

Campus Activity Funds vs. Student Activity Funds Campus Activity Funds – Fund 461 Roles Principal is responsible for collection, disbursement, and control of all campus activity monies “The educator shall honestly account for all funds committed to his or her charge and shall conduct financial business with integrity.” – Principal 1, Standard 2 of the Code of Ethics and Standard Practices for Texas Educators, State Board for Educator Certification Providing for the safeguarding of monies at the school in a locked, secured area Proper accounting and administration of fund transactions Expenditure of funds in compliance with applicable state laws, HISD Board Policy, and administrative guidelines Adequate training and supervision of all personnel designated to administer activity funds Ensuring that money is not overspent or lost due to carelessness, theft, or fraud

Campus Activity Funds vs. Student Activity Funds Campus Activity Funds – Fund 461 Roles Secretary or bookkeeper Maintaining an adequate supply of forms, deposit slips, bags Verifying deposit amounts and forwarding activity fund deposits to the Business Office on a timely basis – within 30 days from date of checks Providing the auditor with accurate records/documentation during yearly audits Reviewing monthly activity account printouts for accuracy Reviewing all forms sent to the Business Office for completeness and accuracy Ensuring all requisitions have the appropriate documentation Entering purchase order requisitions and check requests into Skyward

Campus Activity Funds vs. Student Activity Funds Campus Activity Funds – Fund 461 Roles Other Staff Members (coaches, counselors, librarians, teachers, sponsors) Ensuring that the money is not overspent, causing a negative balance in their respective account, or lost due to carelessness, theft, or fraud Compliance with district procedures pertaining to accounting for funds, cash handling, preparation of deposits and ensuring deposits are made timely – within 30 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 from the secretary or bookkeeper, and the safeguarding of activity fund money until it is deposited by the secretary or bookkeeper

Campus Activity Funds vs. Student Activity Funds Student Activity Funds – Fund 865 Funds generated by student groups 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 Fundraisers, Deposits, Purchases

Campus Activity Funds vs. Student Activity Funds Student Activity Funds – Fund 865 Roles The sponsor of each school club/organization is responsible for managing his or her respective student activity fund and maintaining adequate financial records of these funds The sponsor is also responsible for ensuring that money is not overspent or lost due to carelessness, theft, or fraud on the part of the sponsor If this occurs, the sponsor will be required to reimburse the negative balance or lost funds The responsibility also includes, but is not limited to, developing fund raising plans, monitoring the financial position of the activity fund, reviewing the accuracy of their account’s monthly financial report from the secretary or bookkeeper, and the safeguarding of activity fund money until it is deposited by the secretary or bookkeeper

Fundraisers Fundraising activity is defined as any activity involving the participation of a student body or a school-recognized student group undertaken for the purpose of deriving funds for a school or a school-sponsored group The campus principal must approve all fundraisers A fundraising project cannot be implemented until the principal approves the fundraiser The campus secretary or bookkeeper is responsible for keeping a calendar of all approved campus fundraising activities A copy of all approved fundraiser request forms must be forwarded to the Business Office prior to the start of the fundraiser

Fundraisers “When fundraising activities are in the name of the school, all funds raised become school funds, belonging to the school sponsored group responsible for raising the money.” – TEA FASRG “Fundraising in the name of the school” occurs when students from a club or the student body as a whole are actually the sellers of the fundraising merchandise Example: Cheerleaders at HHS are selling cookie dough; Elementary students at RES receives an order form for selling wrapping paper

Fundraisers During fundraising activities where students are selling the merchandise, school district personnel are responsible for collecting these funds from students to hold as trustee These funds are held by the school district in a trustee capacity, and are to be expended in accordance with the desires of the teachers and administration of the school, or in accordance with the desires of the student group generating the funds “All funds collected by school district personnel from students are defined as activity funds and must be handled through the activity fund accounts” – TEA FASRG

Fundraisers 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 HISD account

Fundraisers School districts are not qualified to hold raffles as fundraisers according to the Texas Attorney General No Raffles – if it looks, smells, or acts like a raffle, it is not allowed! (chance of the draw)

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 Fundraisers should not compete with the School Breakfast or School Lunch program

Fundraisers Clubs/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 By law, all 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 organization per calendar year (not school year) and should plan accordingly A book fair is usually not a qualified tax-free sales event because the school district is not the seller, but is acting as an agent for the vendor

Fundraisers No cash prizes can be awarded for any fundraiser This includes gift cards Bicycles, toys, electronic equipment, or other prizes are valid awards/incentives for fundraising events

Deposits Payments should never be made for any expense using undeposited cash receipts! 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 vault during reconciling periods

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 stored in a bank bag in a school safe or vault or brought to the Business Office

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 Personal check cashing using undeposited funds is not permitted Cash must not be taken out of undeposited funds and replaced with an employee’s personal check

Deposits All information needs to be entered into the Tabulation of Monies Form All sponsors must completely fill out the Activity/Operating Deposit Form and verify the funds being deposited before turning them in to the secretary or bookkeeper It is not the responsibility of the secretary or bookkeeper to fill out this form and count the funds for the sponsors This will also protect the sponsor and secretary or bookkeeper should any discrepancy arise

Deposits The description of the type of funds being deposited MUST be written in the Funds 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 secretary or bookkeeper All checks should be endorsed with a Hutto ISD endorsement stamp All checks should be copied for back-up documentation

Deposits The secretary or bookkeeper will verify all funds accompanying each deposit form, initial the form, and prepare an activity fund bank deposit Before placing the funds in a sealed bag, the secretary will record the bank bag number on the deposit form and deposit slip The secretary will place the white copy of the deposit slip in the bank bag with the funds, seal the bag, and forward it to the Business Office for deposit The secretary will keep the yellow copy of the deposit slip with the documentation, deposit form, and deposit slip and forward it to the Business Office for posting The secretary will email a completed copy of the Activity/Operating Deposit form for upload into Skyward

Deposits All activity fund deposits should be forwarded to the Business Office in a timely manner (daily) All deposits should be turned into the Business Office on Friday 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

Sales Taxes Exempt Organization As a special district authorized by the State of Texas, Hutto 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 they are for use by the District The sales tax exemption derives from the special status of the District; therefore, the Hutto ISD tax identification number CANNOT be used by employees, parent groups, patrons, or other organizations to secure exemption from sales taxes under any circumstances

Sales Taxes Purchase by an Exempt Organization 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 The item remains school property and ownership does not pass to an employee, student, or other individual 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 athletic, 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 The following are not taxable, no matter how many sales occur during the year: Passbooks/Discount Cards School Sponsored Trips 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 Teachers, coaches, sponsors and others must pay sales taxes on individual purchases even though the school reimburses them for expenses School districts are exempt from the 6% state hotel occupancy tax The Texas Hotel Occupancy Tax Exemption Certificate must be presented when checking into the hotel The district will not reimburse staff for state hotel taxes paid The district, however, will continue to pay or reimburse local hotel taxes Complete itemized hotel receipts showing room and tax charges per night are required for reimbursement

Sales Taxes Taxable Sales Items which the school purchases and later sales 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 Fees for materials when the end product becomes possession of the student Student publications such as yearbooks and football programs School pictures Staff shirts purchased by the staff Any materials used in the class room if the end product becomes a possession of the student, such as dress material or art supplies Stationary, notepads, etc. produced in a classroom or vocational class 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 fundraisers A sale, such as yearbooks, can qualify as a one-day sale as long as all of the items are DELIVERED to the purchasers on one day If any items are left over or if a new delivery arrives on a separate date, the items may still be sold, but sales taxes would have to be charged on those items For a sale to qualify as a one-day tax exempt sale, the merchandise for sale must be transferred by the qualified exempt organization to the purchasers in a 24-hour period In order for t-shirts to qualify as a one-day tax exempt sale, all the t-shirts must be delivered by the student club to the purchasers in a 24-hour period Payment does not have to be collected in this 24-hour period If any t-shirts are left over, they may still be sold, but sales taxes would then have to be charged on those items

Sales Taxes Fundraising Sales A club does not have realize a profit for a sale to qualify as a one-day tax exempt sale The one-day tax exempt sale applies to all sales regardless of whether or not the exempt entity realizes a profit or gain from the sale Example: If a sponsor plans ahead, uniforms can be delivered to the students (purchasers) in a 24-hour period and qualify as a one-day tax exempt sale

Sales Taxes Fundraising Sales Each student activity 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 an one item to be eligible for tax-free treatment if sold during a one-day sale

Purchasing Purchase Requisitions should be entered into Skyward prior to making any purchase, but especially for purchases over $100 Merchandise must not be ordered from a vendor until the PO has been approved by both the Principal/Director and Business Office

Purchasing Purchases over $1,000 should be purchased from an approved vendor on the Hutto I.S.D. approved vendor list in Skyward, from a Purchasing Co-op (BuyBoard, TCPN, etc.), or with three quotes from vendors not approved on Skyward Purchases over $10,000 will require a formal solicitation from vendors Contact Kelly for purchases over $10,000 Purchases over $50,000 will require Board approval

Purchasing The district has a quotation threshold for purchases of $1,000 or more Orders over this limit, that have not been bid, will need to have a minimum of three formal quotes attached to the order before it can be processed, or a very clear description of the items and/or services being requested, so that the purchasing office can obtain the quotes Exceptions would be professional services, sole source purchases, and items purchased from a bid

Purchasing 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 A secretary should not sign on as Principal/Director to approve POs Adequate description Failure to properly complete one of the items may result in a denied requisition

Purchasing Changes to POs can be made prior to Principal/Director approval Once PO is approved, changes will not be made to pricing Shipping cost overages are okay 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

Credit Cards Credit Cards will be checked out from the Business Office once a PO is approved Credit Cards available in the Business Office HEB Wal-Mart Master Card Return Credit Cards as soon as possible so others can use them – limited availability

District Credit Cards Used for Emergencies, Travel and Vendors who do not accept POs Do not use for supplies, Wal-mart, HEB, etc. Should not be used on a regular basis May result in card being revoked District Credit Card agreements must be signed annually for use of Master Card by cardholders (administrators) District Master Cards available for check out 15 cards currently available (Hutto ISD 1-15) Will be used for in place of per diem check requests (Tip: Lest costly than per diem checks) Will be required to return all receipts

District Credit Cards 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 credit card by misappropriation of funds or unauthorized purchases Non-educational Illegal Personal Use Alcohol or Tobacco Gift Cards

Accounts Payable Check Requests must be submitted online through Skyward Documentation must be uploaded and attached Online Check Requests go through same approval process as Purchase Orders Original invoice/documentation must be sent to the Business Office for check processing

Accounts Payable Forward all Invoices to Sheryl Rich as soon as possible If you need a check on the print date, please put a post-it note on the hard copy of the check request so it can be pulled and processed sooner and in Skyward ***Check print dates are on Wednesday in order to process ACH deposits to accounts by Friday***

Accounts Payable Scheduling New Vendors Contract vendors (game help, Fine Arts technicians, SROs, etc.) will be paid in Week 3 of every month Employee reimbursements will be completed in Week 4 of every month New Vendors If you are using a vendor with no W-9 on file, contact the vendor for a current W-9 Vendors can only be added to Skyward by purchasing (Kelly)

Travel Use District Credit Card to reserve Hotel and when traveling Complete a PO to Master Card for cost of hotel and appropriate taxes Hotel Receipt Itemized receipt is required upon return. Charges must be detailed to show no state occupancy tax or personal charges were paid.

Travel Do not book through money-saving hotel websites such as Hotels.com, Trip Advisor, Travelocity, Hotwire, etc. These sites cannot provide itemized receipts or tax exempt status

Travel Registrations – Complete a PO or online Check Request and turn in to Business Office for payment Registrations can be paid with Master Card if PO is completed Attach list of students, when applicable Mileage – Attach mileage from Mapquest or GoogleMaps from campus (not home) to the address of the event For monthly mileage, please use form that is posted on the Business Office Website

Competitions Competitions are an integral part of the activities of many student clubs and organizations HISD encourages students to participate in these activities Funding of those activities at various levels is as follows: District or First Level of Competition Area, Region, and State Levels National Levels

Competitions District or First Level Funding must be provided from either the Campus Operating Budget allocation or Campus Activity Fund to the maximum extent possible This includes both co-curricular competitions (drama, FCCLA, etc.) and extra-curricular competitions (band, athletics, cheer, drill team, etc.) If sufficient resources are not available from those sources, Student Activity Funds may be utilized pending student approval Every effort must be made to ensure that no student is unable to participate in any activity due to financial limitations

Competitions Area, Region, and State Level National Level Funding for all reasonable expenses associated with qualifying competitions at these levels is provided by allocations in the District’s Operating Budget National Level Funding for the National Level of competition will be paid for by the District, up to $500 per attendee Must first qualify at a lower level Must have Superintendent’s approval to attend since National competitions are usually out of state

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 Highlighter will fade the ink, and also make the amount more difficult to read on copies It is best to have purchases for the school on a separate receipt from personal purchases

Employee Reimbursements Receipts Do NOT tape receipts Taped pages jam the check scanner Use Staples – easily removed DO make a copy of the entire receipt and attach it and the original receipt to the PO The original receipt should include the date Watch out for HEB receipts – the date is at the very bottom

ACH Direct Deposit Employee reimbursements will be made via ACH Direct Deposit to the same bank account used by Payroll Travel advances will be done through District Master Card (per diem and hotel) or check (per diem if large group)

Finance Team Finance – Ed Ramos x 1005; Jeffri Orosco x 1012 Purchasing/Facility Rentals – Kelly McCann x 1006 Deposits/Account Balances/Skyward Finance – Vicki Melton x 1019 Accounts Payable/Checks – Sheryl Rich x 1018 Payroll/Time Sheets – Sharon Bunge x 1014 District Receptionist – Sandy Williams x 1011

Any Questions? Thank you!