Transcript Student Activity Funds Procedures

Student Activity Funds
Procedures
2008-2009 School Year
Hereford ISD
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Why are we here?
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TEA requires that we account for activity
funds as designated in the Financial
Accountability Resource Guide
External auditors audit these funds each
year
Current year campus changes
Answer questions
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Student Activity Funds
“Necessity is the Mother of Invention”
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Fund 865
To Benefit the Student
Group or general student
population
Student Participation is
important: work towards
goals, work ethic
Fundraisers contribute to
the educational
experience of pupils
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Campus Activity Funds
Fund 461
Raised at the campus and managed by the
principal (ex. Coke machine money)
 Must be expended to promote the general
welfare of the school and educational
development of students
 Supplement budgeted district funds
 Should not be spent to benefit any
individual or non-student group
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Responsibility
Principal – Overall administration, approval
of fund raising activities in advance, see
that sponsors have signed responsibility
forms, sets limits for number and kinds of
fundraisers allowed
 Campus bookkeeper – Maintaining
records, bank statements, issuing
authorized checks, deposits
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Responsibility, cont.
Faculty sponsor – Safeguarding & accounting for
all student funds entrusted to him/her; follow
procedures; maintain detailed financial records;
maintain positive balance; **See responsibility
form
 Accountant/Auditor – Monitoring monthly activity
and bank reconciliations; Ensure that our district
complies with TEA’s requirements; Protect
student funds from misuse
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Starting a Fundraiser
Fill out a Fundraiser Permission Request
Form for Principal’s “OK”
 Once approved, that form makes it to my
office
 Plan ahead for expenditures and
communicate with your principal and
bookkeeper; Keep ALL records pertaining
to your fundraiser (5 years)
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Expenditures
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Plan ahead
Fill out purchase order, give to bookkeeper
Payment can only be made with a vendor’s
invoice
NEVER pay for expenses out of undeposited
cash
NEVER request a blank check
NEVER spend more $ than is in your account
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Allowable Expenses
Faculty Account –
Staff meals,
refreshments,
Christmas gifts,
flowers, supplies
 Student Groups –
Funds from
fundraisers should
only be expended to
benefit the members
of the club or group
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Acceptable Uses of Funds
Supplies & Materials used by student
group members
 Entry fees for competitions & meetings
 Travel expenses for student members &
adult sponsors
 Membership in related organizations
 Flowers or cards for condolence or
appreciation
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Acceptable Uses (cont.)
Charitable contributions (flow-through)
 Expenditures for parties/entertainment of
the student members
 Equipment to be used by the student
members of the organization (becomes
property of HISD and must be properly
tagged); principal approves items $250$5,000; superintendent approves $5,000+
expenditures
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Inappropriate
Expenditures/Receipts
Any purchase not
approved by the
student membership
of the group
 Any purchase that
benefits the adult
sponsors and not the
student membership
 ANY raffle ticket or
bingo game fund
raiser
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Unallowable Expenses
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Sales Tax on Exempt Items
Loans to employees or parents
Membership in private clubs
Donations or contributions (except for “flow-through”)
Advertisements in periodicals/yearbooks, etc.
Alcoholic beverages
Auto repairs
Traffic citations
Monetary awards to employees
Payment for services to HISD employees (stipends, etc.
must go through payroll office)
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Tax Exemption on Purchases
Paying Sales Tax on Exempt items is a misuse of
student funds
 You will NOT be reimbursed for purchases made
on behalf of the school group if merchandise
should be tax exempt
 Exempt items: Meals, State Hotel Tax, Items for
resale (see Tax Free Sales), Supplies, etc.
 Sales Tax IS required for items that become the
property of the student, for ex. Cheerleading
Uniforms or School Rings
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Receipts
Checks should be made payable to HISD
 Do not accept postdated checks
 Use numerical sequence receipts – Make
sure you have some!
 Write in ink
 When it is not possible to write a receipt
for each person, use Tabulation of Moneys
Received (Ex. Large amt. students)
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Safekeeping Receipts
Count money as soon as possible (Same Day)
 Turn money into the office/safe on the day it is
collected with Receipt form filled out and signed
 Do not keep money in your desk unless you
have a locked drawer, then take to office/safe at
end of day
 Weekend deposits - night drop or talk with your
principal/bookkeeper
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Deposits
Remember the 3 day
rule: Deposits MUST
BE made within 3
(Three) days from
receipt.
 Cash receipts must
equal your deposit
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Taxable Sales Exemption
A student group may
have TWO tax exempt
fund raisers per
school year.
 This is called a one
day tax free sales.
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Nontaxable Sales
Fees & admission tickets, ex. Drama,
Koobraey
 Club memberships
 Sales of food, soft drinks, candy sold on
regular school day during fundraisers for
the student group
 Sale of whole cakes or pies
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Taxable Sales
School purchased supplies sold directly to
students (ex. Athletic equip, cheerleading
uniforms)
 Fees for materials when the end product
becomes the possession of student
 Student publications (Ex. Yearbooks)
 School rings
 Books sold to students at book fairs
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Taxable Sales, cont
Sponsors MUST COLLECT the sales tax on
merchandise other than food that they
sell.
 The school that accepts responsibility for
the activity must also be responsible for
insuring that the correct tax is paid.
 The sales tax rate is 8.25%
 See Form A-6, Give to bookkeeper
immediately following fundraiser
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Fundraiser Report
Provides information
for sponsor – was it
successful/profitable?
Should we do this
fundraiser again?
 Provides district with
documentation if
sponsor is later
questioned
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Fundraiser Reports, cont.
 Must
be completed within 10 days
following the conclusion of fundraiser
 Unrecoverable merchandise/money –
list on report
 Sign and give to bookkeeper/principal
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Thank You!
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Activity funds were invented because
of the scarcity of school funds
Sponsors like you make it possible
for students to learn and experience
beyond the classroom environment
Questions? Call me at 363-7600, or
email
[email protected]
Website: www.herefordisd.net Go
to staff pages at the Business Office
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