School Internal Accounts Leon County Schools

Overview Definition Statutory Authority Account Structure Cash Receipts Cash Disbursements Reporting PTO/PTA/Booster Groups

Internal Accounts Internal Accounts are a system of accounts used to track financial transactions for school activities Funds collected and expended within the school including, but not limited to, proceeds from fundraisers, fees collected from students; funds generated by PTO, Booster Groups, and Support Organizations that do not have 501(c)3 status; and funds collected from athletic events

Statutory Authority Florida Statutes 1011.07 – Internal Funds State Board of Education Administrative Rules 6A-1.001 – District Financial Records 6A-1.085 – Basic Principles of Internal Fund Accounting 6A-1.087 - School Board Responsible for Internal Funds 6A -1.091 – Purchases from Internal Funds Florida Department of Education Financial and Program Cost Accounting and Reporting for Florida Schools (The “Red Book”) – Chapter 8 Leon County Schools Policies Internal Accounts Manual Policy 6610, Internal Accounts Policy 6424, Purchasing Cards Policy 9211, PTO/PTA/Booster Groups Policy 5830, Student Fund-Raising

Account Structure Athletics 1000 Music 2000 Classes 3000 Clubs 4000 Internal Accounts are divided into seven categories in the “Red Book”: Athletics 1000 Music 2000 Classes 3000 Clubs 4000 Departments 5000 Trust 6000 General 7000

Account Structure

Cash Receipts

Cash Receipts All funds must be collected for a specific purpose. The bookkeeper cannot be the first point of collection for funds. Funds should be collected by a teacher or another staff member. Teacher receipts must be issued for all funds collected in excess of $5.00. Properly completed Reports of Monies Collected (ROMCs) must accompany all collections. The ROMC should be completed by the person collecting the funds.

Cash Receipts Funds must be turned in intact daily to the school bookkeeper. The bookkeeper must issue an official receipt to the teacher for all funds received. The person collecting funds must observe the verification of funds by the bookkeeper and wait for the issuance of the official receipt. Funds must be deposited within three days of receipt. When applicable, properly completed Ticket Seller Reports, Inventory Reports, Donation Letters and other appropriate supporting documentation should be maintained for cash receipts.

Miscellaneous Cash Receipts Info Donations A donation Letter must accompany all donations. If donation letter cannot be obtained, funds must be used for the general welfare of the entire student body. Student Fees Fees must be used for items given to the student or for items consumed by the student paying the fee. Accounts should have zero balances at the end of the year. Funds may be spent only on the student who paid the fee. Fees cannot be used to purchase items deemed to be the responsibility of the District.

Miscellaneous Cash Receipts Info Locker Fees These fees can only be used for locks, repairs and maintenance of lockers. Parking Fees These fees can only be used for equipment or services related to management of the parking spaces in the student parking lot. Athletics Ticket Seller Report Ticket Inventory Concessions Inventory Report Change Fund Log of Complimentary Athletic Purchases

Miscellaneous Cash Receipts Info Fundraising Prior Approval Activity Request Form Resale Raffles and games of chance are prohibited. Elementary and Middle school students are not permitted to solicit door- to –door. Inventory Report Ticket Seller report Fundraising Reconciliation Report Fundraiser proceeds may carryover from year to year; however, consideration must be given to spending the funds on the students that generated the funds. Food items for sale to students must comply with USDA Smart Snacks in Schools regulations.

What to look for... Properly completed Report of Monies Collected Teacher Receipts Official Receipts Donation Letter Fee letter Activity Request Form Inventory Report Ticket Seller Report

Cash Disbursements

Cash Disbursements All disbursements from internal accounts require prior approval. Internal accounts disbursements may be initiated by internal accounts check or IA P-Card Miscellaneous IA P-Card Travel P-Card Properly completed and approved Check Requisition Forms must accompany all expenditures from internal accounts. Properly completed and approved Internal Accounts Purchasing Card Requisition Forms must precede all IA P-Card expenditures from internal accounts. The IA P-Card Policy Acknowledgement Log & Sign-in/Sign-out log must be completed by persons using the IA P-Card.

Cash Disbursements The IA P-Card must be returned with 24 hours of receipt. All receipts must accompany the IA P-Card when returned. IA P-Card expenditures should not exceed the amount approved on the IA P-Card Requisition Form. Purchase Orders should be processed as follows: Single item over $100 Total invoice over $500 Over $1500 requires purchasing department approval.

Cash Disbursements The school’s sales tax exemption number may only be used in conjunction with a school check or IA P-Card. Deficit spending is prohibited. Reimbursements are prohibited. Expenditures from Internal Accounts must be made with check or IA P-Card. Refunds from internal accounts require a copy of the original teacher receipt evidencing initial payment. Contracts under $8,000 maybe approved by Principals and District level administrators. Contracts between $8,000 and $25,000 maybe approved only by the superintendent, deputy superintendent, assistant superintendent, or the Director of Purchasing. Contracts over $25,000 require Board approval.

Miscellaneous Disbursement Info Athletics Recruiting trips are prohibited Scouting trips are allowed Log of Complimentary Athletic Purchases Extra Duty Payroll Must be processed thru LCSB Payroll Department Travel Class C travel must be processed thru LCSB Payroll Department Reimbursed at same rate as District travel Field Trips Out-of-County travel approval form Roster of students and chaperones Detailed expenses Use of remaining funds

Miscellaneous Disbursement Info Restricted Expenditures Equipment, supplies, forms, and postage Curricular related travel Items for personal use Personal memberships or subscriptions Salaries or other compensation Loans, credit, or accommodation purchases Repair and maintenance of school board equipment Discretionary Funds Facilities rental charge back Donations for use at principal’s discretion Target, Ink, Share Night commissions Faculty vending 1099’s Individuals or unincorporated businesses who receive payment of $600 or more for services rendered throughout the District.

What to look for… Prior Approval Properly completed Check Requisition Form Original Invoices or Receipts Professional Technical Service Agreements Purchase Orders Activity Request Forms

What to look for… Contracts Log of Complimentary Athletic Purchases Yearbook Report and Yearbook Ads Sold Report Inventory Report Ticket Seller Report Gift Card Log

Bookkeeper Monthly Review Process Reconcile prior to the 15th day of the following month Follow up on stale-dated and NSF checks Ensure all voided checks are properly defaced Ensure all journal entries are approved by the principal Ensure all supporting documentation accompanies all internal accounts transactions Make adjustments to correct any negative balances prior to the end of the month

Principal Monthly Review Process Open, review and sign bank statements prior to forwarding to the bookkeeper to prepare monthly reconciliation Bank reconciliation for prior month should be completed by the middle of the next month Review bank reconciliation Unreconciled Items Outstanding Checks Review Principal’s Monthly Report Deficit spending Inactive accounts Large account balances NSF checks Availability of funds for upcoming expenses

Other Review Activities Semi-Annual Financial Statement Annual Financial Statement QPD Form or QPD Annual Report Records Retention – 5 years Random Audit External Audit Fraud Reporting

PTO/PTA/Booster Groups Operate at the discretion of the principal Must have 501(c)3 status to maintain separate checking account Must obtain approval of principal for activities Must keep funds from student participation (fundraising/fees) in internal accounts Must provide updated list of officers at least annually Booster groups can only operate at the high school level.

Contact Information Office of Internal Auditing 2757 West Pensacola Street (850) 487-7278 (w) (850) 766-5542(c) Livetra Paul Director of Internal Auditing Carliena Jackson Payne Internal Auditor