Activity Fund Training January 25, 2017 PRESENTERs: Hilda Rendon, Executive Director of Finance and Operations, Jessica Montalvo, Internal Auditor, & Bertha Esparza, activity fund bookkeeper

Activity Funds – Definition & Purpose Monies accumulated from the collection of student fees and fundraisers Used to promote the general welfare of each school and the educational development and morale of the students Two types: Campus Activity Funds and Student Activity Funds

Campus Activity Funds Principal Accounts (Fund 461) contains money raised locally at the campus or donated to the campus, belong to the Campus and/or District. Principal Activity Fund Accounts are considered administrative accounts and must adhere to State and Board Policy, District Regulation, and are thus subject to the procurement laws Principal Activity Fund Accounts must be treated in the same manner as the General Fund campus accounts (Budgeted allocated funds) CFD (LEGAL) Activity Funds Management: Discretionary expenditures of local funds to be related to the District’s educational purpose The Club Sponsors for the Principal Accounts include the Campus Principal as well as departmental people Principal exercises managerial authority over these funds

Student Activity Funds Student Accounts (Fund 865) contains money accumulated from the collection of student fees and approved fundraising activities. Student Activity Fund monies belong to the various student groups and not the Campus and/or District. Funds collected by the student groups shall be used only for the purposes authorized by the organization Students have the sole responsibility for deciding how to spend the money Student Club Accounts must have club charter (bylaws) and elected officers (must keep meeting minutes) Meeting minutes should include authorization of expenditures Club Sponsors for the student activity funds must be faculty members who are full-time employees. District has custodial responsibility

Responsibilities for Activity Funds Principal Bookkeeper/Principal’s Secretary Sponsor Business Office Note: Principal’s are not responsible for assets held by parent or booster organizations. External funds cannot be commingled with the Activity Funds.

Responsibility of Principal Oversight of Campus Activity Funds (Principal Accounts) & Student Activity Funds - CFD (LOCAL) Activity Funds Management Directly responsible for proper collection and disbursements Safekeeping of Money (i.e. Safe, Vault) Training and supervision of all personnel designated to administer activity funds Approval of expenditures in accordance with state laws, board policy and district regulations Approval of fundraisers and related forms

Responsibility of Bookkeeper Maintain the accounting records Maintain a distribution record of all receipt books issued to sponsors and personnel Deposit on a timely basis (daily or weekly) Review club balances on, at least, a monthly basis Report fund balances to sponsors on a monthly basis Report any variances to Business Office

Responsibility of Club Sponsor Club Sponsors are responsible for: Monies collected Merchandise purchased Exercising maximum control when performing fundraisers Net profit/(loss) Deposits and expenditures Must be in compliance with all procedures stated in the Activity Fund Manual

Responsibility of Club Sponsor - continued Deposits: Club Sponsors are responsible for preparing the Activity Fund Detailed Deposit Slip Submit to Bookkeeper Detailed Deposit Slip White  Business Office Yellow  Principal’s Secretary/Bookkeeper Pink  Club Sponsor

Responsibility of Business Office TxEIS posting deposits and checks Process activity fund checks Variance inquiries to campuses Monthly bank reconciliation Sales tax reports Final approval fundraisers

Basic Records Deposits Slips (Frost Bank) Activity Fund Detailed Deposit Slip Receipt Books Voucher Request Form Fund-Raising Application for Activity Funds Form Activity Funds Operating Report Form Club Statements Bank Statements: Reconciled by Business Office Activity Fund Manual

Procedures for Receipts All monies received must be receipted Sponsors must have their own receipt book Sponsor issues receipt from book to students An original (white) receipt to the Student First copy (yellow) to the Bookkeeper Second copy (pink) remains in receipt book Bookkeeper issues receipt to Sponsor for total amount An original (white) receipt to the Sponsor/Parent/Student First copy (yellow) to the Business Office

Procedures for Deposits Teachers, librarians, club sponsors must deposit with bookkeeper weekly or when amount reaches $100 All money must be secure overnight in the campus safe Sponsor Prepares Student Activity Fund - Detailed Deposit Slip, in triplicate An original (white) Business Office First copy (yellow)  Bookkeeper Second copy (pink)  Club Sponsor Submits to Bookkeeper Bookkeeper verifies amount

Procedures for Deposits -continued- Bookkeeper Prepares Student Activity Fund - Detailed Deposit Slip RECAP, in triplicate An original (white)Sent to Business Office First copy (yellow)  Kept by bookkeeper Second copy (pink)  Kept by bookkeeper Prepares Bank Deposit Slip, in triplicate An original (white)Sent to bank First copy (yellow) Sent to bank & returned to Business Office Places deposit in Tamper Proof Bag Schedule SBCISD PD for deposit pick-up Submits completed Student Activity Fund - Detailed Deposit Slip RECAP to the Business Office for recording in TxEIS

Procedures for Deposits -continued- Business Office Records deposit in TxEIS Must be in Business Office no later than 3:00PM for processing. After 3pm will be processed the next business day The original copy of deposit is retained by the bank. The duplicate copy is validated and returned to the Business Office. Business Office will post to TxEIS using the bank validated deposit slip. The sum of the amounts of the supporting cash receipts must agree with the amount of the deposit slip.

Donations Recipient completes Gift/Bequest Form Bookkeeper files Gift/Bequest Form External donor website are not allowed. Go Fund Me Donors Choose Adopt a Classroom Fuel my School Pledge Cents

NSFs Business Office inputs negative deposit into TxEIS Copy of NSF will be sent to Bookkeeper Bookkeeper sends issuer a Returned Check Notice via Certified Letter-Return Receipt Name, Address, Phone #, Check #, Amount & Date A copy of returned check The new amount with $30 processing fee Issuer has 10 days from Returned Check Notice to make restitution.

NSFs - continued - If not paid within 10 days, Bookkeeper submits to District Attorney Submission to District Attorney: Image of returned check or legible, certified photocopy (Request original from Business Office) The signed return receipt from the certified letter or the unopened, unaccepted letter A copy of the Returned Check Notice Complete the Worthless Check Affidavit form found at http://www.co.cameron.tx.us/JP/docs/WorthlessCheckAffidavit.pdf  Staple and place all NSF documentation in a secure file. Submit the “Worthless Check Affidavit” form and all required documents to the Cameron County District Attorney’s Office. Make sure to make copies of all documentation that is sent to the District Attorney and maintain a log of all checks submitted.

Expenditures Processed through the Business Office Paid by check from the activity fund bank account Sufficient funds need to be available in the appropriate activity account Principal approves all voucher requests

Expenditures - continued - Purpose of the form Provide authorization of the expenditure Document the purpose of the expenditure Identify the account to be charged Verify adequate funds exist to cover the check

Expenditures: Voucher Request Form

Expenditures: Voucher Request Form Voucher Request Form Procedures Club Sponsor must complete, to include all required signatures & account number Fund (461 or 865), Organization code (Campus #), & Sub- object code (Club account) Use qualified vendors Original quotes/invoices/receipts must accompany the form the Business Office Checks are processed every Tuesday and Thursday Forms should not be pre-signed.

Expenditures: Payments to Non-Employees for Contracted Services For employment of non-district personnel as a consultant/instructor the Non-District Consultant Contract form must be completed prior to the services being rendered. The form should be attached to the Voucher Request Form and New Vendor Listing Form Vendor/Consultant needs to complete the Internal Revenue Service W-9 Request for Taxpayer identification Number and Certification and submit to campus Bookkeeper. Bookkeeper should attach W-9 to the Voucher Request Form.

Fundraiser Definition A fundraising activity may be defined as any activity involving the participation of a student body or school-recognized group undertaken for the purpose of deriving funds. When fundraising activities are in the name of the school, all funds become school funds, belonging to the school sponsored group responsible for raising the money. All monies acquired through fundraising activities are considered public funds. Discretion is advised as public funds are subject to public scrutiny.

Fundraiser Compliance Sponsors must be in compliance with all fundraiser procedures. Principals are responsible for enforcing compliance. Required Fundraising Forms: 1. Fund-Raising Application for Activity Funds Form 2. Activity Funds Operating Report Form Each secondary campus & bona fide club, as approved by the principal, will be allowed to conduct a maximum of two (2) fundraisers per year. Each elementary campus will be allowed in-house fundraisers Only high school varsity teams may conduct sales of co/extracurricular support posters. Reference: FJ (LOCAL) - GIFTS & SOLICITATIONS Prohibited fundraisers: Raffles, Bingos & Door-to-Door Sales

Food Fundraisers USDA Smart Snacks in School Standards (effective 7/1/2014) defines the school day as the period from midnight to 30 minutes after the end of the official school day. No food sales of any kind will be allowed during the school day. Food sales after the end-of-day bell but before the 30 minutes, need approval from Child Nutrition Program Why? CNP needs to determine compliance with Texas Department of Agriculture (TDA) food standards. An email response will be sent to campus originator If approved, this email should be attached to the Fundraiser Application for Activity Funds form.

Food Fundraisers Compliance TDA requires the District to keep complete and accurate documentation of records for competitive beverages and food sold. Campus is responsible for maintaining this documentation Should be kept in the Principal or Principal’s Secretary Office This Documentation is the District’s method to demonstrate that food and/or beverage items sold met the Competitive Food Nutrition Standards Documentation includes: 1. nutrition value calculation, 2. nutrition fact labels, 3. invoices and 4. form or records indication portion size and number of servings

Food Fundraisers Compliance Smart Snacks Calculator The Smart Snacks Calculator is located on the District’s website Departments  A-E  Child Nutrition Program  Smart Snacks Calculator (left 3rd icon down)

Food Fundraisers Compliance Smart Snacks Calculator The Smart Snacks Calculator results MUST be kept on file, see sample below:

Sales Tax Purchases made by the District are exempt from sales tax if they are intended for District use Students and employee are not exempt from the sales tax, so the resale of merchandise may be taxable Each campus and SAF club may have two (2) one-day tax-free sales per year Note: Parent/Booster Organizations are strictly prohibited from using the District’s Sales Tax Permit Number

Taxable vs. Non-Taxable Sales Some examples of: Taxable Sales: School supplies, spirit items, clothing, yearbooks, athletic programs, yearbooks purchased by students Non-Taxable Sales: Car washes, discount cards, dues, fees/fines, food sales, tickets, parking permits and student IDs Tax-free sales: any taxable item sold on one of the two-tax free sales days (may count prepaid orders as one day or delivery of goods as one day) Book Fairs – do not qualify as one-day tax free sales as the school is not the actual seller but merely an agent for the vendor. As an agent, the school receives commission only.

Sales Tax The sales tax rate is 8.25% of sales. You may sell a product at a price that includes the sales tax or add to the sales price to collect the tax. Adjusting the selling price to include sales tax: Sale price $10.00/1.0825 = $9.24 Sales revenue is $9.24 and the tax is $0.76 Add the tax to the price of product: Sales price $10.00 X 0.0825 = $.083 Sales revenue is $10 and the sales tax is $0.83

Club Balances TxEIS Login Campus Activity Fund (461) TxEIS Login  Finance  Inquiry  General Ledger Inquiry Input Fund, Organization (Campus code) Can narrow by sub-object (Club code) Student Activity Fund (865) TxEIS Login  Finance  Report  Journals, Checks, Detail Ledgers  FIN 1850 – Student Activity Fund Report Can narrow by sub-object (Club) Can select “Y” for “Page Break by sub-obj (Sponsors/Club Report only)?” This always to print all SAF club reports, on separate pages, at once

Reminders Clubs are allowed two (2) fundraiser per year Clubs (bona-fide) are allowed two (2) tax free days Fundraisers are limited to a duration of two (2) weeks Sponsors & Bookkeepers should keep copies of all activity fund documents for their records Care must be exercised when handling cash Inventory records should be kept as appropriate No raffles, bingos, or door-to-door sales allowed No gift cards allowed from CAF (461) External donor websites Go Fund Me, Donors Choose, Adopt a Classroom, Fuel my School and Pledge cents are not allowed.

Parent/Booster Organizations Separate entity of the District Do NOT commingle Parent/Booster funds with Activity Funds Must obtain a Federal ID number to establish a checking account, cannot use the District’s Federal ID number. Principal or designee cannot direct parent/booster organization Cooperation should exist between campus and organization Principal or designee should have understanding of fundraising Campus or student group should see benefit from such organizations Are strictly prohibited from using the District’s Sales Tax Permit Number

No Cash Transactions Cash transactions are prohibited. All monies must be deposited and a voucher request for any expenditures.

Compliance to policies & procedures! Internal Audit When we audit, we look for: Compliance to policies & procedures!

References Board Policy Activity Fund Manual, 2016-2017 Forms http://pol.tasb.org/Home/Index/260 Activity Fund Manual, 2016-2017 Forms http://www.sbcisd.net/2014/04/sbcisd-forms-2/

Questions or Comments?