1. MISD Activity Account Training

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

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

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

15. 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)

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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.

27. 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

28. 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

29. 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

30. 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

31. 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

32. **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**

33. 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

34. 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

35. 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

36. 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

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

38. 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

39. 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

40. 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)

41. 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

42. 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

43. 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

44. 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.

45. 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

46. 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

47. 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 – 1st grade
17 – Basketball – 2nd grade
20 – Volleyball – 3rd grade
23 – Cheerleading – Library/Bookfairs
25 - Track – Sunshine Account
32 – AVID – Yearbook/Journalism
50 – Band/Music – Student Council
51 – Choir – Aerospace/Robotic
xxx-xx-xxxx-xx-xxx-x-xx-xxx
Fund Function Object SubObj Org Year PIC Local

48. 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

49. 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

50. 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

51. Any Questions?
Thank you!