2/22/2013 AGENDA Financial Reporting Requirements Local School Financial Manual Dennis Heard Fiduciary Responsibility Sonja Peaspanen State of Alabama Department of Education of the Principal 2/26/2013 Public / Non-Public Funds FINANCIAL MANAGEMENT FOR Receipts LOCAL SCHOOLS Banking School Income SCHOOL FISCAL ACCOUNTABILITY APPORTIONMENT OF FUNDS RULE CHAPTER 16-13A ADOPTED BY THE STATE BOARD OF EDUCATION Added to the Code of Alabama in 2006 through Act Posting of Financial Information to Local Internet No. 2006-196 Site Financial File must be uploaded to the SDE internet portal Required reports Local personnel download the “Required Reports” generated from the file upload. Monthly reports to include: PDF files are recommended Financial statement showing financial status Required monthly reports must be posted to the local Receipts & Expenditures internet site no later than 45 days after the end of the Budget vs. actual expenditures reporting period. Annual reports to include: Additional Posting Requirements Annual budget In FY2010, the requirement to post a monthly check Fixed asset inventory register was added to the Apportionment of Funds rule LOCAL SCHOOL FINANCIAL FIDUCIARY RESPONSIBILITY OF THE MANUAL PRINCIPAL The following are some general rules regarding the financial affairs of the schools. These rules, as well as the accompanying procedures and policies will be subject to audit. School funds will be receipted and deposited in the school account on a timely basis. Expenditures will be paid by check (or approved payment procedure) and supported by proper documentation. Purchases will be approved by the Principal (with a signed purchase order when required) before the purchase is made. Accounting records will be posted daily. Bank statements will be reconciled monthly. Monthly financial reports reflecting accurate balances and activities of the accounts of the school will be reviewed and approved by the principal. 1
2/22/2013 FIDUCIARY RESPONSIBILITY OF THE FIDUCIARY RESPONSIBILITY OF THE PRINCIPAL PRINCIPAL Important resources www.alsde.edu / Offices / Ultimately it is the Principal’s responsibility to Office of Supporting Programs / LEA Audits or ensure that funds are collected and disbursed in LEA Accountability / Local School Finance accordance with local board policies. Local School Financial Procedures Manual School Parking and Locker Fee guidance The Principal must be familiar with all local Student Fees and Donations guidance school financial policies so that he or she will not Guidelines for School Related Organizations permit practices contrary to the policies. Presentations Procedures for Local Finance State Examiners 2010 Update on Local School Finances PUBLIC VS. NON-PUBLIC FUNDS PUBLIC FUNDS – REVENUE Admissions Fund Raisers* Grants Appropriations Sales Concessions* Donations* Commissions Accommodations* Dues & Fees – Other* Required Fines & Penalties *In specific situations, these may be considered Non-Public PUBLIC FUNDS PUBLIC FUNDS EXPENDITURES UNALLOWABLE ALLOWABLE EXPENDITURES Professional Development Training Food items for teachers or teachers lounge Refreshments for an open house at a school where the Meal expenditures for employee spouses public would attend Faculty & staff Christmas luncheon Pregame/Postgame meals for student athletes and Coffee & cups for employees coaches Lunches for teachers for school closing activities Academic incentives for students Planned lunches for faculty & staff Athletic and band uniforms for students participating Flowers for sickness, death, secretary week, etc. in school activities Beginning of year breakfast with faculty & staff Membership in professional organizations Alcohol School landscaping, maintenance, furnishings, and Late fees decorations 2
2/22/2013 NON-PUBLIC FUNDS – REVENUE PUBLIC VS. NON-PUBLIC Concessions* You can transfer non-public to public, but NOT Dues & Fees – Self imposed public to non-public Fund Raisers* You cannot purchase “stuff” (clothing, food, flowers, coffee, etc.) for teachers or other staff Donations* from public funds Accommodations* If non-public receipts are commingled with Other* public receipts, the all become public *In specific situations, these may be considered When in doubt, it’s probably public!!! Public COMMON PROBLEMS NOTED BY THE RECIEPTS EXAMINERS Deficit Balances – Non Public Accounts Deficit balances in non-public activities / accounts are not allowed The school can not loan money or extend credit to individuals per the State Constitution The Principal / Bookkeeper should ensure money is available for a non-public expenditure prior to authorizing a purchase order. RECEIPT CONTROLS RECEIPT COMPLETION Manually prepared receipts: Collection documents: Pre-numbered, duplicate receipts. Teacher Receipts Issued in numerical order. Alternative Receipt Records Reports of Ticket Sales Original signature – no signature stamp Master Receipts Cannot be pre-signed. Automated Receipts Receipt should be made to the name of the Security is often overlooked in providing these individual actually delivering the funds. documents to the individuals collecting funds. The completed original receipt should be given to Pre-numbered documents and log sheets to track the assignment of these documents are part of assuring the individual delivering the funds. the security of school funds. 3
2/22/2013 RECEIPT COMPLETION MASTER RECEIPTS Retain voided receipts for audit. Issued in the school office. Issued only after counting the amount of the funds at the time the funds are received. No correcting fluid or erasures. Teacher should not leave funds and come back Complete with indelible ink. later to get receipt. The teacher should bring the receipt documents to DO NOT CASH CHECKS! the office with the funds. Do not use cash collected for change cash or Funds should be counted and verified to the expense payments. receipt documents before the Master Receipt is written to the teacher. MASTER RECEIPTS TEACHER RECEIPTS Deposit funds daily or according to local board The Principal should keep a log of teacher receipt policy. Secure funds until deposit. books to track receipt books to the teacher. A teacher should not give funds collected to a student to take to the office. The teacher receipt books should be returned to Endorse check with words “For Deposit Only” the Principal at the end of the school year or along with the name of the school bank account earlier, if required by local board policy. and the bank account number. The Master Receipt should be completed with the information required to document the funds received. TEACHER RECEIPTS TEACHER RECEIPTS - ALTERNATIVE As an alternative to writing individual receipts most local The teacher is responsible for funds collected until school boards allow a collection form to document turned in to the office. collections from multiple students for small amounts for field trips, daily juice, etc. The collection form must identify: No funds should be left in the classroom The purpose of the collection overnight. The date the funds are received The individual student Do not hold funds until the activity or fund raiser The amount collection is complete. Timely deposits of funds And be signed by the teacher collected is required. The alternative receipt form is taken to the office with the funds collected. 4
2/22/2013 COMMON PROBLEMS NOTED BY THE BANKING EXAMINERS RECEIPTS Receipts are to be deposited timely and intact. If receipts are not deposited daily, there is more opportunity for problems / theft. “Master Receipts” should note if the amounts were cash or check If a receipt is voided, “voided original should be stapled to copy in receipt book. BANK ACCOUNT DEPOSITS School funds must be deposited in a timely manner. A school should have no more than one checking account, preferably interest-bearing. Deposit slips should be pre-printed, duplicate forms containing the name of the school bank account and the bank account number. All school funds must be included in the school’s financial statements. The deposit slip should contain the Master Receipt numbers of the funds deposited. The bank must be a Qualified Public Depository (QPD) under the SAFE program. The bank should authenticate the duplicate deposit slip. RETURNED CHECKS RETURNED CHECKS Checks included in bank deposits may not be Procedures for handling returned checks should accepted by the bank because of : be determined by local board policy. Insufficient funds. Closed account. Check Recovery Service Bank error. Incomplete check or check error. Bank service charges should be paid by the returned check writer or waived by the bank. Unauthorized signatory. No endorsement. Risk list – individuals not allowed to pay by check. 5
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