OLIVIA WILLIS, INTERNAL AUDITOR INTERNAL ACCOUNTS OLIVIA WILLIS, INTERNAL AUDITOR Good evening, my name is Olivia Willis. I work in the Office of Internal Auditing and am the Internal Auditor for Leon County Schools. This evening I would like to talk to provide general information on internal accounts that would be of interest to you as members of DAC and as parents. We will also discuss 3 internal accounts categories in more detail and they are student fees, student fundraising and PTO/PTA/Booster groups.

Internal Accounts Funds collected and expended within the school including, but not limited to, fundraising proceeds, student fees, athletic ticket sales and PTO/PTA/Booster group funds Fund-based accounting structure Each school can only have one checking account The Principal is ultimately responsible for all funds deposited into the school’s internal account. Correspondence & Receipts Requirements Internal accounts is the money that’s generated at the school site from school based activities, such as fundraisers, field trips, student fees, and ticket sales. This money is housed at the school level in a checking account and managed by the principal and bookkeeper. The account structure for internal accounts is established by the Florida Department of Education in the Red Book. Each school District will organize their internal accounts structure in this manner. It is a fund-based accounting structure which means that all money collected is held in one checking account but when entered into accounting software it is logged into individual account categories. For example, let’s say 3rd grade is collecting for a field trip to the zoo. When the money is turned into the bookkeeper, they will enter the money into account 37003. Our district currently uses Skyward Accounting software. As a parent there are a few things that you should know. Our process states that when fees are being collected for any purposes or the school is having a fundraiser, there should always be correspondence provided to you stating its purpose. These correspondence could include a letter from the school or a fee letter (which will be discussed in more detail later). Also, when you turn in money to the school, and it is over $5 you should be receiving a receipt for these funds.

Governance State District FLDOE – The Red Book http://www.fldoe.org/finance/fl-edu-finance-program-fefp/financial-program-cost- accounting-repo.stml District LCS Policy 6610-Internal Accounts http://www.neola.com/leon-fl/ LCSB Internal Accounts Manual http://www.leonschools.net/cms/lib7/FL01903265/Centricity/Domain/206/IAManual- Revised.pdf LCS Policy 6152-Student Fees, Fines and Charges http://www.neola.com/leon-fl/search/policies/po6152.htm LCS Policy 5830-Student Fundraising http://www.neola.com/leon-fl/search/policies/po5830.htm LCS Policy 9211-Parent Organizations, Booster Clubs and Other Fundraising Activities http://www.neola.com/leon-fl/search/policies/po9211.htm This slide is being provided as a reference to show all of the governing authorities for internal accounts. As mentioned previously, the Red Book is the governing authority from the FLDOE. The district also has policies that govern as well as provides an internal accounts manual that is accessible to anyone on our internal auditing page on the district’s website.

Student fees Student fees is any monetary charge collected by the District from a student or the parent(s) or guardian of a student as a prerequisite for the student’s participation in an curricular or extra-curricular program of the District. Must be collected for a specific purpose (fee letter) Can only be assessed for things that are consumed by the students and should be spent only on the student who paid the fee. Cannot be assessed to purchase items that are deemed the responsibility of the District. Fee accounts must have a zero balance at the end of the school year. Any remaining funds not spent on the student must be refunded. So let’s talk about student fees. Student fees is money charged and collected by the district for a students participation in curricular or extra-curricular activities of the District. These charges are paid for by the student, parent(s) or guardian. All fees must be collected for a specific purpose. When fees are collected a fee letter should come home from the school/teacher. The fee letter is itemized and outlines in detail what the purpose of the fee collection is for. For example, if your child is going on a field trip and there is a cost for admission, bus and food, the fee letter should state the cost of each of these items. Fee collections are to be used on items that will directly be used by the student paying the fee and cannot be used for community property. Some of these items could include weekly readers, t-shirt for grade level field trips, and field trips. Since Leon County Schools provides a free education, fees cannot be charged for items that are deemed the responsibility of the District. Examples of this includes a textbook, furniture, fixtures and equipment. Since fees should be used on the student that paid them, fee accounts must have a zero balance at the end of the school year. If for some reason all of the fees that were paid for your student have not been used, they should be refunded.

Student Fundraising Student fundraising is student solicitation and collection of money for any purpose. Must have a specific purpose (Activity Request Form) The fundraising activity must be approved by the Principal Fundraising money derived through student participation must be deposited in the school’s internal accounts. Fundraiser proceeds may carryover from year to year; however, consideration must be given to spending the funds on the students that generated the funds. Student fundraising is students participation in efforts to raise money for a school purposes or for an activity connected with the schools. For many clubs, this is the way the generate money to get projects accomplished. Any fundraiser that a school, club or group wants to participate in must be for a specific purpose. This purpose is outlined on an activity request form. This form is turned in to the principal prior to any fundraising efforts taking place. The principal’s signature on the form acknowledges their approval of the fundraising efforts. It is important to mention that no fundraising efforts should take place without the approval of the Principal. When students are involved in the fundraising efforts then the money must be deposited into the school’s internal accounts. In some circumstances fundraiser proceeds may carryover from year to year. However best practice is to spend the funds on the students that generate them.

PTO/PTA/Booster Groups Exist to support the school at the discretion of the Principal Support groups must inform the Principal of fundraising goals and objectives prior to the activity Internal vs. External account All support groups must have an internal account for funds that are derived through student participation. Support groups that generate funds that do not involve students may have an external account at the Principal’s discretion, if they obtain 501(c)3 status (non-profit) Support groups must provide a list of current officers and periodic financial reports to the school Principal PTO/PTA/Booster Groups are a support of the school and must have the approval of the Principal to function. Elementary and Middle school support organizations, like PTO/PTA, are there to provide school wide support and cannot establish individual Booster Groups. High schools are allowed to have support organizations that provide school wide support as well as those that are tied to a specific group (Booster Groups). It is important to note that only high schools are allowed to have booster groups. Common examples of booster groups for this level is football, band, basketball etc. All of these organizations are able to fundraise with prior approval of the principal. PTO/PTA/Booster Groups are allowed to provide fundraising efforts. Just like with student fundraising, there must be a specific purpose for the fundraiser and they should prior approval from the principal. Correspondence needs to be distributed to students, parent(s) or guardians informing them of the purpose of the fundraiser. It is important to mention that no student, parent(s) or guardian is obligated to participate in fundraising efforts. There is also something unique about these groups and it is that they can be either internal and/or external. If students are involved in fundraising efforts then those funds must be deposited into an internal account. An external account can be used if students are not involved in fundraising efforts, the group has a 501(c)3 status and the principal approves. Leadership in support groups may change from year to year so it is important that the school is made aware of these changes. This can be accomplished by providing the principal with a current list of officers each year. Also, as a support groups financial reports must be provided periodically to the school principal.

Questions

Contact Information Leon County Schools Office of Internal Auditing 725 South Calhoun Street (850) 561-8922 Olivia Willis Internal Auditor Williso@leonschools.net Livetra Paul Director of Internal Auditing Paull@leonschools.net