1. School Internal Accounts
Leon County Schools

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

3. 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

4. Statutory Authority Florida Statutes 1011.07 – Internal Funds
State Board of Education Administrative Rules
6A – District Financial Records
6A – Basic Principles of Internal Fund Accounting
6A School Board Responsible for Internal Funds
6A – 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

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

6. Account Structure

7. Cash Receipts

8. 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.

9. 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.

10. 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.

11. 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

12. 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.

13. 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

14. Cash Disbursements

15. 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.

16. 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.

17. 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.

18. 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

19. 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.

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

21. 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

22. 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

23. 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

24. 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

25. 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.

26. Contact Information
Office of Internal Auditing 2757 West Pensacola Street (850) (w) (850) (c) Livetra Paul Director of Internal Auditing Carliena Jackson Payne Internal Auditor