1. Activity Fund Procedures 2018-2019
Presented by: Claudia Garza, Staff Accountant II

2. Funds
199 General Fund
Funds in which the local governing board designates
Governmental fund with budgetary control which is used to show transactions resulting from operations of on-going organizations and activities
9xx Campus Activity Funds
Funds under the control of the Principal
Funds raised are to be used to benefit students in the District
8xx Student Activity Funds
Funds belong to a bona fide chapter (student group)
Funds do not belong to the District
Expenses are approved by the students
Sponsor for the club oversees the funds
Teacher Funds/Hospitality Account allowed. Must follow same policies and procedures as (8xx) account

3. Roles and Responsibilities
Club Sponsor
Attends annual training
Submit a Sponsor Responsibility Affidavit form
Submits Fundraiser form
Issues receipts and maintains records
Deposits funds collected on a daily basis
Completes a Fundraiser Revenue and Expense Report
Campus Secretary/Bookkeeper
Receives, counts, and receipts all funds
Monitors approved fundraising activities and submission of funds
Assists sponsors
Informs Principal of problems and concerns
Campus Principal
Proper accounting and administration of all activity funds
Approval of all campus and student activity fund transactions
Safekeeping of money on campus
Approval of disbursements in accordance with the procedures manual

4. Cash Handling

5. Collections DO
DON’T
Deposit money on a daily basis
Always lock money in the Campus safe
Issue a receipt every time you collect money
Receipt (prepared in triplicate)
Tabulation of monies form (less than $10)
Order form
Complete forms in their entirety
Place money in your purse or wallet
Take money home or lock in a classroom desk/cabinet
Deposit activity money in a personal bank account
Accept postdated checks from any source
Campus mail cash or checks
“Employees are liable for any money lost/stolen if not safeguarded in campus safe ”

6. Library Collections DO’s DON’T
Collect moneys from students for lost books and fines
Issue a receipt to the student and provide copy of the receipt to bookkeeper/secretary
Turn in money to campus bookkeeper/secretary on a daily basis
Notify campus bookkeeper/secretary that funds collected belong to another campus. Campus bookkeeper/secretary will submit an internal transfer to Accounting to transfer funds to appropriate campus
Hand deliver cash to another librarian for lost book fees
Campus mail lost book fees
Transport cash to another campus
Keep money in drawers, cabinets or wallets

7. “A receipt should always move with the money”
Example on Receipting
RECEIPT
REQUIRED
Teacher
Student
RECEIPT
REQUIRED
Teacher
Secretary/Bookkeeper
“A receipt should always move with the money”

8. Receipts
All pre-numbered receipts must include:
Date
Amount
Issuer
Activity fund club
Description – purpose of which the money was received
Signature of the party receiving the money
PR Account
“All monies received must be acknowledged by immediately preparing a receipt”

9. Receipts Receipts are not to be pre-signed or pre-dated.
Under no circumstance must a pre-numbered receipt be altered.
If an error occurs, void the receipt and reissue.
Order form can be used in lieu of a receipt:
Name
Amount
Description
Signature of the person receiving the money
Scanned as part as deposit documentation

10. Tabulation Sheet (AF-4)
Tabulation of Monies Collected (AF-4) can be used in lieu of a receipt for collections less than $10.
Form must be completed entirely
Only for collections of $10 or less

11. Cash Distribution Form
Form AF-1 must be prepared for deposits and is used for tabulating cash and/or checks received
Two people must count the money and sign the form
Prepared in triplicate
White - Club File
Yellow - Sent to the bank
Pink - Kept by sponsor

12. Tax-Free day notation required
Deposit Slips
Person collecting is responsible for preparing deposit slip (Club Sponsor or Secretary/Bookkeeper).
Deposit slips are prepared in triplicate
White - Sent to the bank
Yellow - Sent to the bank
Pink - Kept by Club Sponsor
Deposit slip must include:
Date
Amount
Currency and Coins
Listing of check by surname or check number
Notation indicating whether it’s a taxable or tax free sale
Tax-Free Day
Tax-Free day notation required

13. Post Deposit in SunGard
Once the validated deposit slip is returned from the bank, the Secretary can post the deposit in SunGard and enter the budget amendment
Cash receipts must be posted in SunGard on a daily basis
Scan the following deposit documentation:
Direct Cash Form (AF-13)
AF-1 (white copy)
Validated deposit slip (yellow copy)
Receipts issued to payee (yellow copy)
Receipt issued to sponsor (yellow copy and only if applicable)
CRs must be posted on a daily basis

14. Fundraising

15. Fundraising DO
DON’T
Make sure that all fundraisers are approved prior to the event (AF-2)
Deposit money on a daily basis
Issue a receipt every time you collect money
Make sure that Revenues and Expenses Form (AF-3) is completed after the event
Indicate if it is a “tax-free” fundraiser on form
Order supplies without an approved fundraising form and/or purchase order
Spend any of the collections prior to depositing funds
Have raffle/bingo/loteria type fundraisers
Have door to door sales
“Employees are liable for any money lost/stolen if not safeguarded in campus safe ”

16. Purchase Order Approved
Fundraiser Flow Chart
Fundraiser Forms
Cash Collections
Funds sent to the Bank
Posting Deposits in GL
Budget Amendment
Requisition
Purchase Order Approved

17. Charitable Drives DO DON’T
Complete all fundraising forms in their entirety. Prior approval is required.
Deposit money on a daily basis
Always lock money in the campus safe
Make checks collected payable to the charity
Issue a receipt every time you collect money
Receipt (prepared in triplicate)
Tabulation of monies form (less than $10)
Order form
Accept checks payable to McAllen ISD
Place money in your purse or wallet
Take money home or lock in a classroom desk/cabinet
Deposit activity money in personal bank account
Accept postdated checks from any source
“Employees are liable for any money lost/stolen if not safeguarded in campus safe ”

18. Common Audit Findings
Brocken Audit Trail
Weakness in Internal Control
Violation of District’s Policies and Procedures
Lack of Reconciliation
Fundraiser application forms (AF-2, AF-3) are incomplete
Missing information, approvals and signatures
Money is not being deposited on a daily basis
Receipts are not being issued when money is collected
Lack of dual signature on when counting
AF-1 form
A GL 90 must be remitted and signed by the club sponsor on a monthly basis
Reconcile sponsor’s and bookkeeper’s records
Receipts are altered or incomplete

19. Raffles
Attorney General opinion JM-1176 ruled that independent school districts are not qualified to hold charitable raffles.
An unauthorized raffle is considered gambling under the Tax Penal Code - Class C Misdemeanor.
Board Policy – CDC Legal:

20. Disbursements

21. Disbursements DO
Don't
Make sure students vote and approve all purchases (8xx funds)
Make sure student minutes are part of payment documentation (8xx funds)
Be very descriptive on check request and PO
Plan accordingly
Check run every 2 weeks
Order supplies or services without a PO
Order from non-approved vendors
Wait until the last minute to get a PO and check

22. School Calendar
Days in yellow – Last day to submit all back up documentation to Accounting for payment
Days in green – check issuance day
Note: Your campus bookkeeper might require sponsors to submit the PO request a week before the AP check run deadline to be able to review the request and/or procees a budget amendment.

23. Gift Cards DO
DON’T
Complete a donation form (AF-6) when a gift card is given to the campus
Keep gift cards safeguarded in the campus safe
Complete gift card register form (AF-18)
Pre-approval from Principal
Sign and date form
Return gift card and receipts for all purchases to campus bookkeeper
Use campus activity (9xx) and student activity (8xx) funds to purchase gift cards that will be issued to staff.
Note: All gift cards purchased out of SAF (8xx) must be from a department store and cannot be a visa, master card or any other type of cash equivalent.
Note: Gift cards in any amount are taxable to the employee.

24. Instructional Supplies
Gift Card Register
Alvarez Elementary
$50.00
HEB
Principal
Signature
$25.00
Instructional Supplies
John Smith
$20.00
$30.00

25. Sales Tax

26. Taxable vs. Non-taxable
Shirts fundraiser
Uniforms (any type)
PE, dance team, cheer, etc.
Flowers/Plants fundraiser
Roses, carnations, poinsettias
Spirit items sold
Stationary and supplies sold
Admission
Dances, musical performances, banquets, prom, tournament fees
Food items sold during fundraisers
Field trips
Book fair fundraiser
Commission sales
“Texas Sales Tax Statutes impose tax on the sale, lease or rental of tangible personal property”

27. Sales Taxes DO DON’T Pay sales taxes on supplies sold
Determine if you are a sponsor of a:
Campus activity fund 9XX
Student activity fund 8XX
Take two (2) tax-free day sales per student organization per year (8xx only)
Note on the deposit slip it is a tax free deposit
Keep a date log of students clubs taking the tax free day
Give away dollars to the State by not taking advantage of the tax free days
Allow your PTA/PTO and Booster to use the District’s tax exempt employer identification number (EIN)
Plan a taxable fundraiser without considering the sales taxes

28. Questions or Comments?