Transcript ACCOUNTING PROCEDURES MANUAL presented by: Office of School Finance WV Department of Education WVDE-OSF Presenter Susan Smith, CPA, Coordinator  [email protected]  304-558-6300 ext 3  The manual can be.

ACCOUNTING
PROCEDURES
MANUAL
presented by:
Office of School Finance
WV Department of Education
WVDE-OSF
Presenter
Susan Smith, CPA, Coordinator
 [email protected]
 304-558-6300 ext 3
 The manual can be found online at
http://wvde.state.wv.us/finance/
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WVDE-OSF
Accounting Records
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Pre-numbered receipt forms
Transaction journal (receipts and disbursements)
Requisitions and pre-numbered purchase orders
Bank checkbook
Bank deposit slips
Monthly bank reconciliations and financial
statements
Annual financial statements
WVDE-OSF
Principal’s Review
The principal must review the monthly
financial statement and sign it
 By reviewing it, he/she can assess the
financial situation at the school quickly
– Journals are up-to-date and balanced
– Cash has been reconciled
– The school is not in a deficit situation
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WVDE-OSF
Receipts
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Pre-numbered receipts MUST be issued for all collections
at the time moneys are collected with original provided to
individual from whom moneys are received and a copy
retained
– Original recording of transaction
– Protects both individuals
– A single receipt with a supporting list may be used when
collecting moneys from a group
– Voided receipts – mark void and retain both copies
– Receipts must be posted at least weekly
WVDE-OSF
WVDE-OSF
Vending Machines
Recommendation – let the vendor stock
 If not, collections are to be receipted and
deposited into school account
 Prepare a profit/loss statement periodically
(p. 81 & p. 83)
 Remit consumer sales tax
 75% of soft drink sales go to faculty senate
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WVDE-OSF
Gate Receipts
Pre-numbered tickets must be used if an
admission fee is charged
 Two individuals should be used (sell/take up
tickets)
 Tickets are to be torn in half and one half
given back to the patron
 Ticket reconciliation reports must be
completed for each event
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WVDE-OSF
Fund-Raisers
Receipt and disbursement procedures apply
 Profit/Loss Statement must be completed
for each fund-raiser
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WVDE-OSF
WVDE-OSF
WVDE-OSF
Child Nutrition Collections
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Receipt written to each teacher collecting money
at the time money is remitted – one for breakfast
collections and one for lunch collections
If moneys are collected from parents, write receipt
or use cash collection form
Ensure Summary Meal Report matches the
collection amounts for each meal
Recommendation - centralized billing
WVDE-OSF
Deposits
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Prepare in duplicate & retain a copy
No cash disbursements or personal checks cashed
from collections
Must deposit at $500 or weekly
Checks must be listed separately
Beginning and ending receipt
numbers must be shown
WVDE-OSF
Purchase Orders
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Purchase order must be completed PRIOR to
obligation of the funds
Pre-numbered, duplicate
Retain a copy
No purchases may be made from a fund or account
in excess of funds currently available
Signed by the Principal or designee
Does not need to be the exact amount of the
purchase
WVDE-OSF
Disbursements
All disbursements must be made by check
 All disbursements must be supported by an
invoice or travel expense report
 All checks require two signatures
 Never pre-sign a blank check
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WVDE-OSF
Personal Services
All payments to individuals must be made
through payroll process
 UNLESS clearly shown an independent
contractor
 ONLY exception is athletic officials
 Report all payments for personal services to
central board office each year for 1099
reporting
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WVDE-OSF
Other Cash
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Petty Cash
– Maximum is $50
– Don’t cash personal checks
– Receipts + cash must always equal the total amount
authorized
– Replenish by a check made out to the principal
Starting Cash
– Maximum is $500
– Don’t cash personal checks
– Amount of cash must always equal the total authorized
– Deposit back into bank when not used
WVDE-OSF
Authorized Expenditures
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All moneys are considered to be quasipublic funds and are to be expended for the
benefit of the students at the school
WVDE-OSF
Unauthorized Expenditures
Contributions to charitable organizations
are prohibited unless a fund-raiser is
conducted specifically for that purpose
 Purchase of food and drink for meetings
 Purchase of service awards for employees
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WVDE-OSF
Authorized/Unauthorized
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Appendix C provides a list of expenditures
specifically authorized or unauthorized by
the State Attorney General opinions or State
Superintendent of Schools interpretations
WVDE-OSF
Bank Statements
Principal review the unopened bank
statement for irregularities
 Reconciliation must be performed as soon as
possible
 Reconciliation must be signed by preparer
and principal
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WVDE-OSF
SSAC Tournaments
Deposit all proceeds into the school account
 Establish a sub-account to track receipts and
disbursements
 All payments made for personal services
must be through payroll process
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WVDE-OSF
School Support Organizations
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Procedures are to be established by each
county board. At a minimum each one:
– That collects funds in the name of the
school must be approved by the board in
advance
– Must have the approval of the principal for
each fund-raiser that is conducted
– Must provide an annual financial
statement to the principal
WVDE-OSF
School Support Organizations
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Each is to have its own business registration
certificate and FEIN
– Be officially organized with a set of published
by-laws
– Prepare and make available written minutes of
each meeting
– Maintain a transaction journal of all receipts and
disbursements
– Establish proper accounting procedures
WVDE-OSF
School Support Organizations
If an organization does not wish to obtain it’s
own FEIN, funds may be deposited into the
school’s bank account
 Follow all school purchasing procedures
 Including unallowed expenditures
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WVDE-OSF
School Support Organizations
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Boards have the authority to examine the
financial records of all disbursements of all
funds, including the operation of concession
stands, fund raisers and gate collections
WVDE-OSF
Faculty Senate
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Each teacher is entitled to a $50 allotment
– Check or allocation
– Sales tax is allowed
– No purchase orders required
Additional monies up to a total of $200 could be allotted to
each teacher. Amounts above the $50:
– Allocation method only
– No sales tax can be paid
– Approved purchase order prior to obligating the funds is
required
– Monies not expended by year end go back into faculty
senate pool
WVDE-OSF
Faculty Senate (continued)
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A budget must be adopted (see sample form)
Individual balances could be restored from end of
prior year with majority vote
Faculty senate checks must be signed by faculty
senate designee and principal (or his designee)
Allotments for teachers who transfer stay with the
original faculty senate
Monthly bank reconciliations and financial
statements are required
WVDE-OSF
County Policies
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BOE must include in local policy:
– Number of funds to be maintained at the
schools
– Whether high schools may sell soft drinks during
school hours (except at meal service times)
– Whether schools may obtain a purchasing card
– Whether schools may have petty cash, and the
maximum amount (up to $50)
WVDE-OSF
County Policies (continued)
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– Maximum amount of starting cash authorized
for gate collections (up to $500)
– Procedures by which school support
organizations are to operate
County or school may establish procedures for:
– Concession sales
– Vending machines
WVDE-OSF
Recommendations
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Use a computerized accounting system
– More efficient
– Reduces chance for error
– Standardizes the accounting function at all
schools
Vending machines stocked by vendor
Disallow the payment for merchandise at time of
delivery
Centralized billing for Child Nutrition Program
WVDE-OSF
Questions
WVDE-OSF