Financial Services Division January 12 2017 2 AGENDA Volunteer Module in RaptorVSoft Campus Activity Funds Contracted Services Armored Truck Services Activity Funds Resources Available at ID: 741584
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Activity Funds Round Table
Financial Services Division
January 12, 2017Slide2
2
AGENDA
Volunteer Module in Raptor/V-Soft
Campus Activity Funds
Contracted Services
Armored Truck ServicesSlide3
Activity Funds Resources
Available at
www.springisd.org/activityfunds
Activity Funds Manual (updated August 2016)
Updates
Training Materials/Resources
FormsBlogTraining opportunities throughout the yearOne-on-one training provided as needed
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Activity Fund ResourcesSlide5
Activity Fund Blog
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Controls for Activity Funds
The nature of activity funds makes them especially vulnerable to error, misuse, and fraud, resulting in audit risk.
It is important to conduct audits to monitor the financial integrity of the financial transactions, fundraisers, and records
High Risk Areas:
Cash Controls
Receipts/Deposits
DisbursementsFundraisersAccount Activity (Transfers/Adjustments)
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Fundraising Activities
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Fundraising Activities
A signed Acknowledgement of Sponsor Responsibilities form is required to conduct fundraisers
Fundraisers must be
fully approved
via a Fundraising Activity Form
prior
to commencing any fundraiserThe fundraising recap section must be completed and submitted to Financial Services within
10 days
after completion of the fundraiser
Documents Inventory Left
Determines Profit/Loss
8Slide9
Fundraising Activities
Transfer of funds to Principal’s Discretionary Account (10%) may only be done from school-wide fundraisers
Kroger & Target rewards
do not
require a Fundraising Activity Form or a Donation Acknowledgement Form to be completed
Sticker, Pencil, and Soft Drink vending machines
do not
require a Fundraising Activity Form to be completed
PTA/PTO/Booster Club – Fundraising Activity Form approved by Principal only
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Change Funds – Start Up Cash
A check of $100 or less may be issued for start-up cash (change funds) to handle an activity efficiently
Book Fairs
Ticket Sales
T-Shirt Sales
Sponsor shall complete a Payment Authorization Form and submit for approval
Check is issued in the sponsor’s nameUpon completion of the fundraiser the sponsor shall return the start up cash using a Tabulation of Monies Form.
10Slide11
Sales Taxes
Taxable Purchases
Purchases for the school’s own use are tax exempt
Purchases for personal use for individuals are NOT tax exempt
Purchases from Sunshine/Cheers accounts are NOT tax exempt
Taxable Sales
Teachers/students must collect sales taxes on all sales and/or fundraisers unless they are determined to be non-taxableBona fide student chapters (e.g. Spanish club, cheerleading club, soccer club, etc
.) are allowed up to two (2) tax free sales days each calendar year
Remittance of sales taxes collected must be done each last day of the month to the Office of Financial Services
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Tax Free Fundraisers
For the purposes of the exemption, one day is counted as a 24 consecutive hours and a calendar year is the 12-month period from January through December.
Bona Fide chapters are allowed two 24-hour tax-free sales fundraisers
Each campus is allowed two 24-hour tax-free sales fundraiser
The entire fundraiser is not tax exempt if the items are not delivered at one time. Items sold after the declared tax-exempt day must be taxed.
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Tax Free Fundraisers
Example:
T-Shirt
Fundraiser approved from
02-01-17
to
02-28-17
Tax Free Day: 02/27/2017 (Shirts delivered to campus)
Selling price: $10
Purchased price: $ 7
Pre-sales: Not taxed (Product is not available at the point of sale)
# of shirts: 100 (amount from presales) + 100 additional shirts
Date/Time: 02/27/2017 @ 9:00 a.m. received 200 shirts on campus
24 hour tax free period begins @ 9:00 a.m. and ends on 02/28/2017 @ 9:00 a.m. for the sale of the additional 100 shirts without collecting sales taxes
If there is any remaining inventory after the 24 hour period the money collected shall be taxed.
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Tax Free Fundraisers
Pre-Sales
Pre-Sales Amount:
100 X $10 = $1,000
T-Shirt Account: $1,000 (no taxes)
Total Deposit: $1,000
24 – Hour Tax Free Sales
Sold on 2/27/17: 50 X $10 = $500
T-Shirt Account: $500 (no taxes)
Total Deposit: $500
T-Shirt Sales after 2/28/17
Sold on or after 2/28/17: 50 X $10 = $500
T-Shirt Account: $461.89 (500 ÷ 1.0825)
Sales Tax Account: $ 38.11 (500 - 461.89)
Total Deposit: $500
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Cash Controls – Receipt of Money
General Rules
At
least two people must be involved in the functions of collecting cash, receipting cash, and depositing
cash
The
bookkeeper shall never be the person collecting moniesThe person collecting the money should never receipt the funds to themselves
Safeguarding of Money
Never leave money unattended
Keep money in a locked safe (not in drawers or filing cabinets)
Combination/keys provided to limited
personnel
Change combination/key when there is a change in bookkeeper or principal
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Cash Controls – Receipt of Money
Cash Collections
Provide receipts for cash collections of $5.00 or more
ONLY use cash receipt books issued by Financial Services; campus receipt book clerk shall account for all issued receipt books to sponsors
Student roster/spreadsheet allowable for collections under $5.00
Do not accept post-dated or out of state checks
Receipts shall not be alteredRetain all three copies of the voided receipts
SUBMIT CASH COLLECTIONS DAILY TO THE BOOKKEEPER
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Donations
A Donation Acknowledgement form must be completed by the bookkeeper and signed by the principal
- PTO Donations
- Business Partner Donations
An EPES receipt must be submitted to donor, not the person submitting the fundsDo not assign a value to donations of tangible property Cash donations from employees to organizations or for specific causes shall be deposited to the Sunshine/Cheers account and checks to the recipient shall be from the same account (follow proper cash handling)
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Submitting Cash Collections to Bookkeeper
Cash collections must be submitted to the bookkeeper on a daily basis in the same form as it was collected
Do not substitute personal checks
for
cash or make loans
Do not hold money for change funds or to make purchases
Bookkeeper shall count cash in the presence of the sponsor or authorized individual immediately or in a timely manner and provide an EPES issued receiptDeposit Documentation shall include:
Tabulation of Monies form
(Required: Breakdown of money denomination)
Yellow Receipt Copy
Copy of EPES receipt issued to sponsor
Any other appropriate documentation to substantiate deposit
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Depositing Funds to the Bank
Funds shall be deposited when receipted to EPES in a timely manner (maximum of 5 days)
Money collected but not deposited must be stored in a locked safe
Maintain a Safe Contents Log to track items stored or removed from the safe
Keep all money collected on school premises
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Disbursement of Funds
Funds should be spent for the intended purpose that they were raised
Follow Procurement Guidelines
Purchases of $3,000 or more require a District purchase order
Use a District-approved purchase order for contracted services
Use approved Spring ISD vendors
Follow quote/bid proceduresAvoid conflict of interest situationsPurchases allowed from Sunshine/Cheers account ONLY:
Gifts to employees (e.g. retirement, birthday, baby shower, etc.)
Gift card purchases
Purchases from this fund are NOT tax exempt
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Disbursement of Funds
Check requests
Require a Payment Authorization signed by principal or designee
Account shall have sufficient funds to cover the purchase request
Must be accompanied by proper supporting documentation (e.g., vendor quote, original itemized sales slips, original invoice)
Review invoices for accuracy (deduct discount and/or sales tax, if applicable)
Check issuanceGenerated electronically through EPES with pre-numbered checksRequire two authorized signatures
Issued to the vendor; never to cash
Shall not be pre-signed
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Disbursement of Funds
Reimbursements
to students or employees must be approved by the principal, accompanied by supporting documentation and not be frequent
Refunds
shall be done with a school check; cash refunds from monies collected are not allowed, except with prior written approval from Financial Services
Advanced payments
for student/staff member travel shall be done via Accounts PayableSupplemental pay to compensate district employees shall be done via a Supplemental Pay Form and paid through the Payroll department
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Transfers and Adjustments
Fund Transfers
Initiated by the bookkeeper but only executed after obtaining approval from the principal and involved activity funds account sponsors
Requires a Funds Transfer Authorization Form signed by the principal
Fund Adjustments
Required a completed Funds Adjustment Authorization form
May be done for deposit corrections by the bank, bank fees, checks clearing for amounts different than those posted in EPES
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Unallowable Transfers
Funds raised by a specific group or organization and student fees are
prohibited
to be transferred to the Principal’s Discretionary account.
Examples include but are not limited to the following:
Cell Phone Fees
Temporary ID Badges
Class Fees (e.g. Art, Band, Choir)
Transcript Fees
Library Lost Book Fines
Parking Permits
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Stale Dated Checks
Outstanding Checks over 180 days shall be voided and marked as stale dated
- Check Date on or before 6/30/2016
Void Check in EPES and issue check made payable to Spring ISD for the amount of the stale dated check
Send check and supporting documentation to Toni
Blaes in Financial Services
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Reports and Records
Reports required to be submitted to the Office of Financial Services by the 10
th
of the month:
EPES Reports
Bank Reconciliation – reconciles the bank statement to the posted activity fund balances
List of Outstanding Checks – lists the checks that have not cleared at the bank as of the end of the monthActivity Ledger – details beginning balance, total receipts and deposits, and ending balance of each activity accountSequential List of Receipts – submit when there’s outstanding deposits at the end of the month
Bank Statement
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Electronic Bank Statement Process
Electronic bank statements are a duplicate copy of the original bank statement mailed to each campus
Viewing and printing the electronic bank statement:
-Log in to Compass Bank
-Go to Reports
-Select Electronic Reports
-Select the bank statement file
-Right click the statement file to print the document
Use the Electronic Bank Statement when your campus does not receive the original statement timely
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Electronic Bank Statement Slide29
1099 Reporting
Payments to an individual or a non-incorporated business for
services performed
for the District must be reported to the IRS as income.
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Florist
Judges
Engraving
Authors
Caterers (Served the food)
Dry Cleaners
Consultants
Contracted Services
Moonwalks
Dunk Tank Rentals
Carnival Equipment Rental
CustomizationSlide30
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1099 Reporting
Record the Tax ID # under the vendor file
All payments to the vendor will automatically be flagged as a 1099 vendor. Slide31
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Contracted Services
Outside Vendors are businesses and/or individuals that are not Spring ISD employees who perform a service for your campus.
Any vendor engagement services shall follow the District’s purchasing procedures.
The use of contracted services in
any amount
requires a District-approved purchase order.
Service Contract
Examples include but are not limited to: Moonwalk rentals, speakers, consultants, music accompanists, translators, custom printer, license fees, etc.Slide32
Thank you