1. These things really happen.
FINANCE OFFICE 101
These things really happen.

2. Your supporting actresses:
Debbie Surges
Kayla St Arnauld
PAYROLL
27 Years with the District
What does she do?
Payroll (anything with your check)
Contracts
Time sheets
Benefits - reminder: use Healthiest You!
State, government, IRS reports
ACCOUNTS PAYABLE / RECEIVABLE
6 months with the District
Name Change
What does she do?
Checks to vendors
Non-salary related checks for employees (conference reimbursements)
Monthly bank reconciliations
Purchase orders tracking
Receipts

3. Each area could have its own lengthy presentation….
Payroll Resources
Accounts Payable
STAFF LOGIN
Human Resources
Benefits and Healthiest You
Dist Resources/Help Sheets:
Sample check
How to view your check in Skyward
Dist Resources/Forms
The focus of this presentation
WHY?
Reminder of governmental entity requirements
New documentation – “staff purchasing / financial guidelines”
New direct deposit of AP checks for reimbursements
(Fund 60/61 still paper)

4. Governmental Entity (That means requirements)
Public schools are funded primarily by tax dollars and state aid. That means oversight for proper use of the funds.
How does the oversight occur?
Audits
Open records requests – community, media
Reports
This means DOCUMENTATION

5. What are we talking about?... PURCHASES THAT YOU MAKE
Why can’t I just go to Wal-Mart and get the scissors I need for my classroom?
DON’T THEY TRUST ME?
Why do we have to waste our time with a purchase order?

6. PRE-APPROVAL:
System accountability: Did it get pre-approval in the system the governmental entity has approved? (There is policy that has been approved by the school board based on proper accounting practices.)
Funds available: Pre-approval allows someone to check if there is money available for the purchase
Check the need: Is there a box of 40 scissors already in the office? Or in the case of a questionable item, it can be denied.

7. ORDERING PROCESS:
Encumbrances: Tracking how much has been spent in your own budget. The purchase order “encumbers” the amount into our software. The next time an order is placed, even if the previous order hasn’t been paid yet, there is tracking of the amount. Therefore if a $400 budget item has $200 encumbered only a remaining $200 will be available to spend.
Central location for orders: Companies call the secretaries and district office with questions on the order or issues. “Pink scissors are backordered.”
Taxes: Purchase orders have the tax exempt information on the order. Any additional documentation needed is again dealt with from the secretary or district office.

8. PAYMENT PROCESS:
Matching invoice to the PO: Imagine a computer order. The principal approved 25 computers on the purchase order. The bill comes for 27. Why? Did we receive 27? Was there fraudulent activity?
Packing slip: We don’t pay bills just from invoices. Sometimes invoices could arrive and we never received the product. Send the slip to Accounts Payable with your initials.
Fiscal year end close: Outstanding PO’s can be contacted for shipment/payment.

9. The bottom line on PO’s
The tracking and accountability requirements of a public entity make purchase orders a necessity.
Ultimately, purchases without utilization of a purchase order can become your own financial responsibility.
Public government is transparent – the paper trail the auditor can view is a requirement.

10. So when can we use the Mileage/Expense Reimbursement form and Not a PO?
So think about the first word: Mileage = Travel to Conferences
The second word = Expense Reimbursement
INCIDENTALS – remember my extreme example of scissors? Yes, you don’t have to put one pair of scissors on a PO. You can go to Wal-Mart and buy the scissors and get reimbursed.
A word on taxes though. Schools are tax-exempt. So, if you go to Wal-Mart:
Check-out a Wal-Mart Card from Kayla in Accounts Payable to not be charged tax.
If you go anywhere else take a tax-exempt form (available on our website under FORMS),
YES, it takes TIME. TIME = MONEY, Don’t do the time, don’t get the dime. We don’t reimburse tax if you failed to eliminate the tax from your order.
NOW DIRECT DEPOSIT! - Note, one your first reimbursement you will get a warning message = contact Kayla. (If you received reimbursement last year, no message.)

11. Now time for a little quiz

12. 1. You want to give a $300 prize to a winning student for a contest
1. You want to give a $300 prize to a winning student for a contest. Should you…
A: Give the student $300 from your own pocket and ask for reimbursement from the business office?
B: Ask the business office for $300 cash to give to the student?
C: Give the business office the name of the student who should receive the $300 prize and the business office will cut a check to the student?
D: Keep money in your desk (or wallet, or lunch box, …) that has been collected for this purpose all year round and use those funds to award the prize in cash to the student?

13. What is wrong with A? (Give the student $300 from your own pocket and ask for reimbursement from the business office?)
Think about what is on paper about the transaction three months later when anyone looks back at this, including our annual auditor.
If the business office allowed this, on paper:
The teacher got $300.
Is there proof the $300 actually got to the student?

14. What is wrong with B? (Ask the business office for $300 cash to give to the student?
The business office is not a bank. We don’t have cash in a vault to distribute.
We do write hundreds of checks (paper trail) that we process at the end of each week.
Think about what is on paper about the transaction three months later when anyone looks back at this, including our annual auditor.
If the business office allowed this, on paper:
The teacher got $300.
Is there proof the $300 actually got to the student?

15. 2. You want to collect $5 per student to offset the cost of a field trip. Should you…
A: Wait until you have collected all of the money and turn it into the office in a pile?
B: Use the $5 to buy the tickets to the museum that you are going to with the kids?
C: Print a class list, daily checking off who gives you money (quickly writing after each name check # or cash), turning it in nightly to the office, and then submitting to accounts payable an invoice from the museum for the tickets?

16. I know, C. seems like more work, but…
Have you ever had trouble with a parent? What if that parent sent you an that said….I know you can buy group tickets to that museum that only cost $3 each? Are you pocketing the difference?
Collecting funds to immediately pay for an item without the paper trail of two separate transactions leads to fraud accusations.
REMEMBER:
ANY MONEY IN = Deposit to your secretary
ANY MONEY OUT = Needs to be a check written by Kayla in Accounts Payable.
Also, remember any money needs documentation – i.e. collection for fundraiser – find a way to document it (two people at the table – one lists the receipts, one collects the cash)

17. 3. You want to begin raising funds via a raffle. Should you….
A: Start the raffle at the next basketball game.
B: Ask for checks during the raffle because you can’t account for cash during the raffle?
C: the business office that you want to start a raffle (we appreciate revenue generating ideas by the way) and find out how to go about it?

18. So remember, there are reasons for financial practices…
We are a government entity. Accountability.
There is proof of transactions and/or tracking of what stage the transaction is in.
Protecting the teacher / all employees.
And P.S. there is a form for everything. If there isn’t, we will make one.