9/3/2019 9/3/2019 2 TODAYS OBJECTIVES: Learn the difference - PowerPoint PPT Presentation

9/3/2019

9/3/2019 2

TODAY’S OBJECTIVES:  Learn the difference between a Campus Activity Fund and a Student Activity Account.  Discuss what is an allowable/disallowable expense.  Review Roles and Responsibilities of Staff.  Review the Process of conducting a fundraiser.  Discuss Taxable Sales and Tax Free Purchases 9/3/2019 3

 CAF – Campus Activity Funds  SAF – Student Activity Funds How do I distinguish between the two types? • Do other persons besides the students decide how to spend the money? If yes, funds are CAF (865-10-2190.00 – Principal Account) • Do the students have sole responsibility for deciding how to spend the money? If yes, funds are SAF (865-10-2190.XX – Student Account) 9/3/2019 4

CAF Campus Activity Funds:  Belong to the Campus/District.  Money raised locally at the school or donated to the school.  Accounts include school office and departmental accounts.  Sponsors for CAF accounts include the Principal as well as departmental employees.  All donations MUST be documented using the Donation Form. Donations equal to or over $5,000 must be approved by the Superintendent or the School Board.  Expenditures must be related to the District’s educational purpose and must benefit the District or the students. CFD (LOCAL) 9/3/2019 5

 General Operation of the school  Direct or indirect benefit to students  Used to promote the general welfare for the school and the educational development and morale of ALL students and staff  Field Trips – admission fees  Perfect attendance incentives for students  Teacher appreciation awards  Classroom and office supplies  Refreshments and snacks (for in-services, staff meetings, retirement receptions). Like General Funds: Must adhere to State, Board/District Policy, and are subject to purchasing and bid laws 9/3/2019 6

 Individual membership fees.  Alcohol, tobacco or other controlled substance.  Payment of wages to district employees.  Individual gifts to specific students or employees.  Donations to a person or outside organization.  Abuse of staff appreciation meals, parties for staff, including food, decorations, favors.  Extravagant expenditures.  Must be reasonable, measurable and restricted. 9/3/2019 7

STUDENT FUNDS = CLUB FUNDS = AGENCY FUNDS  Belong to various student groups; NOT to the campus or district  Spending decisions rest “SOLELY” with the students  Must adhere to State, Board/District Policy, and are subject to purchasing and bid laws  Must adopt bi-laws for operations and elect club officers 9/3/2019 8

ROLES/RESPONSIBILITIES: SPONSORS  Attend at least two trainings during the year  Maintain all records related to fundraisers  Submit the Authorization for Fundraiser Form  Submit funds to Secretary on the same day monies are received accompanied by Deposit Worksheet Form. Do not hold funds until the end of the fundraiser!  Complete the Fundraiser Profit and Loss Report for each fundraiser.  Reconcile the activity account to financial reports monthly. 9/3/2019 9

ROLES/RESPONSIBILITIES: SECRETARY  Receives and reconciles monies alongside sponsor.  Deposits funds as received, DAILY or WEEKLY using pre-numbered, duplicate deposit slips.  Submits deposit slips/deposit worksheet to Business Office on a timely manner.  Monitors approved fundraising activities and submission of funds.  Informs Principal of problems or concerns. 9/3/2019 10

ROLES/RESPONSIBILITIES: PRINCIPAL  Approve /Deny the Authorization to Conduct a Fundraiser Form.  Safeguard monies if funds were not able to deposit at the bank. Example: After 3pm  Approve requisitions using CAF and SAF .  Monitor CAF and SAF. 9/3/2019 11

ESTABLISHING A FUND ACCOUNT  Campus Activity Fund Accounts can be established by request from the Principal to the Business Office.  Student Activity Fund Accounts must have a sponsor, officers must be selected and bylaws must be submitted to the CFO for approval.  Once approved, the Business Office will notify principal and sponsor.  No fundraisers activities are to precede approval of bylaws and approval of student group. 9/3/2019 12

 A maximum of three to four fund raisers per club/organization are allowed during the year.  Each club/organization is entitled to two (2) One-Day tax free fund raiser sales in a calendar year.  Sales tax is required to be paid on all other sales if applicable.  Example: Yearbook Sales  School Districts are NOT allowed to conduct raffles. (Attorney General ruled that school districts are not qualified to hold charitable raffles. An unauthorized raffle is considered gambling under the Texas Penal Code – Class C Misdemeanor 9/3/2019 13

 If it is a faculty fundraiser – you cannot use students to sell.  Should be done strictly on a voluntary basis and shall not disrupt the regular school day.  Funds raised by employees can be used for employees and students, but funds raised by the students can ONLY be used by students. 9/3/2019 14

 STEP 1 – Sponsor completes an Authorization to Conduct a Fund Raiser Form, even before entering into a contract with the vendor.  STEP 2 – Get Campus Principal Approval  STEP 3 – Get Business Office Approval  STEP 4 – Return Form to Business Office. The Business office will forward a copy to Campus after all approvals.  STEP 5 – Conduct the Fund Raiser  STEP 6 – Submit funds to Campus Secretary for deposit using the Deposit Worksheet Form as needed. Pay vendors as needed.  STEP 7 – Complete Fund Raiser and Submit Profit/Loss Statement along with Final Deposit. 9/3/2019 15

CASH MANAGEMENT  All cash and checks should be submitted to the campus secretary/bookkeeper on a daily basis. (Deposit Worksheet Form)  Funds should be verified in front of sponsor.  Triplicate pre-numbered receipt books must be used. White: To sponsor Yellow: To Business Office Pink: Campus Permanent File 9/3/2019 16

CASH MANAGEMENT(CONTINUED)  All funds received by the secretary/bookkeeper must be deposited daily using pre- numbered/duplicate deposit slips.  Deposit Slip and Deposit Worksheet must be submitted to Business Office Bookkeeper within 3 days.  Ensure that Deposit Worksheet is complete with proper descriptions, fundraiser name, and budget account numbers.  Once entered as a cash receipt and all documentation is attached, Accountant will update budgets. 9/3/2019 17

RETURNED CHECKS  All returned checks will be deducted from the appropriate activity account balance until the outstanding amounts have been collected from the payee.  To minimize returned checks, all checks must have proper identification such as drivers license & phone numbers (required)  Make all checks payable to Wimberley ISD  All makers of returned checks will be charged a $30 fee by Envision.  The district reserves the right to reject future checks from makers of returned checks. 9/3/2019 18

CHECK DISALLOWANCES  No personal checks shall be cashed from school funds.  Postdated checks shall not be accepted by the school from any source or purpose.  Staff member’s personal check may not substituted for cash collections. “Cashing personal checks is prohibited”. 9/3/2019 19

FUND RAISER RECAP:  Sponsors must prepare and submit an Authorization to Conduct Fundraiser Form.  Campus Principal , Business Office, and Superintendent must approve/deny the fundraiser.  All cash receipts must be deposited daily by the campus bookkeeper and receipts be submitted to the finance office along with the Activity Fund Deposit Worksheet.  At the end of the fundraiser, a Profit/Loss Statement must be submitted to the finance office for reconciliation.  8.25% Sales Tax will be withheld from the total earnings if applicable. 9/3/2019 20

BACKING OUT TAX ON TAX INCLUDED SALES  Use this formula to calculate the sales tax on tax included sales. Example: Taxable item sells for $11 including tax. Tax is 8.25% SALES PRICE DIVIDED/TAX RATE=TAX BASE SALES PRICE-TAX BASE=SALES TAX $11/1.0825=$10.16 $11-$10.16=$0.84(TAX) 9/3/2019 21

TO TAX OR NOT TO TAX???  Texas Sales Tax Statutes impose tax on sale of tangible personal property. When an individual purchases a tangible item and it becomes their personal property, tax is imposed.  Examples of Taxable Sales  Books, Videos, Shirts, Cheerleading Uniforms, Cups, Equipment and Uniforms, spirit items, Books sold at book fairs, Yearbooks.  Exempt from tax sale:  Admission, Food items during fundraisers, services, such as car wash. 9/3/2019 22

SALES TAX ON PURCHASES  All items purchased by a public school for the school's own use qualify for an exemption from sales tax if the items purchased relate to the educational process.  The school district should provide the seller a sales tax exemption certificate.  Purchases made by individuals, even if for the school are not tax exempt.  Purchases made by non-employees on behalf of the school are not tax exempt and are prohibited. 9/3/2019 23