Socorro Independent School District Fundraising and Activity Accounting

Socorro Independent School District Fundraising and Activity Accounting 2016 -2017

Auditors Joe San Miguel, Internal Auditor Tony Reza, Chief Financial Officer Marta Carmona, Internal Auditor

AGENDA I. Purpose II. Responsibilities III. General Accounting Information/CAM Updates IV. District Policies and Expectations V. Web Resources VI. Live. Binder Access IV. Conclusion/Questions

District Expectations This training does not replace the responsibility to read and abide by set procedures, policies and expectations • Read the Campus Accounting Manual (CAM) • Be very familiar with district policies related to Fundraising and Activity Accounting • Understand the responsibility for properly handling money • Understand that violating district policies and procedures carry consequences that may lead to disciplinary action to include termination

Purpose for Training Why am I here?

NO CASH PURCHASES For any reason

Purpose for Training • • Communicate SISD Expectations Instruct fundraising required practices Support student programs and activities Protect and guide SISD employees and ensure all policies are followed

Fundraising Application Process Before any fundraising activities take place on your campus: • Ensure that the Activity/Club Sponsors have signed the Responsibilities of Activity Account Sponsors Form (once per year and before the first Fundraising activity) • Ensure that Activity/Club Sponsors are trained adequately prior to approving any fundraising activity • Read the purpose of the activity and ensure compliance to all procedures

Fundraising Considerations Ask: What is the intended goal for the fundraiser and how do you plan to use funds? Ensure all sponsors have been trained annually-keep records! Ensure the fundraiser does not begin until required approvals have been obtained. Ensure the sponsor recaps the fundraiser.

Required Signatures for Approval Very Important 1. Principal-The principal has the right to deny activity—ask questions 2. Department of Financial Services Activity Accountant-Karen Edens 3. Assistant Superintendent of Elementary/Secondary

Student Trips The appropriate Assistant Superintendent of Elementary or Secondary Education must approve any fundraising activities application to finance a student trip. Elementary Secondary Carmen Crosse Lucia Borrego

Filling out the Application Check for the following: • Beginning and ending date for the fundraising activity

Filling out the Application • Purpose of sale- ask what the funds raised will be used for – Proceeds from sales must be used as indicated on the approved application

NO CASH PURCHASES For any reason

EXAMPLE TO RAISE MONEY FOR STUDENT PRACTICE APPAREL SUCH AS SHORTS AND JERSEYS FOR 25 BASKETBALL PLAYERS AND 5 VARSITY PREGAME TEAM MEALS FOR TEAM BUILDING. COACHES (3) STUDENTS (25)

NON-EXAMPLE BUY EQUIPMENT AND GEAR

Filling out the Application • Describe product or activity

Filling out the Application • Prior to beginning a new activity, ensure that all outstanding debts have been collected.

Filling out the Application • Cost and profit information-Profit specified by company representative must be attainable. Complete each of the following:

Filling out the Application Please make sure sponsors read and understand the significance of the following statement:

Financial Recaps Must be completed within 45 days from the end of the activity or at year end.

Financial Recaps Must account for all money and products received • Sponsors must keep detailed records of uncollected amounts. • Student names and amounts • Products or items • Update the financial recap as money is collected.

NO CASH PURCHASES For any reason

Financial Recaps Very Important • Sponsors are required to close all fundraising activities at the conclusion of the school year. New fundraising activities should not be approved until all past year’s activities are closed.

Activity Fund Responsibilities • • Deposits-All collected funds must be deposited daily. Money should not remain on campus or with sponsor more than three days. Principals-Principal’s responsibility is to see all faculty sponsors have signed the Responsibilities of Activity Account Sponsors Form and ensure that proper training has been provided to all sponsors prior to approving fundraising activity. Approve/Deny the fundraising activity. Business Agent/Secretary-Reports balances to principal before they become negative. Assist the principal in monitoring fundraising activities and expenditures. Sponsor-Faculty sponsor is responsible for student activity fund recordscash receipts, copies of invoices, disbursements, fundraising forms, recaps, overseeing club business, and most importantly following all district procedures that apply to activity account management.

Principal’s Responsibilities The principal shall be responsible for the financial administration of the school’s student activity funds as follows: • Creating a culture of ethics and compliance. (Awareness, trusting and verifying!) • Ensuring the safekeeping and handling of cash and checks. (IE: Cash box) • Proper accounting and administration of funds. (Ask questions!) • Ensure that all expenditures of funds are in compliance with applicable local board policy, state law, and administrative guidelines. (Monitor, monitor!) • Provide adequate training and supervision of all personnel designated by the principal to administer activity funds. (Maintain documentation) The principal is not responsible for funds collected, disbursed and controlled by parent or booster organizations. These parent and booster organization funds are not to be accounted for in the school’s activity accounts.

Campus Activity Manual CLASSIFICATION OF ACTIVITY FUNDS Activity Funds are funds held by the school in a trustee capacity or as an agent for the students, club organizations of the campus, teachers, and general administration of the school. According to the Texas Education Agency Resource Guide, all funds held by a school in a trustee capacity will be considered Activity Funds. This includes all funds generated by clubs and student organizations.

Campus Activity Manual • • • Under no circumstances may any funds be deposited into a personal account. CNS must approve any food items sold during lunch on campus. Only fundraising vendors approved through Purchasing may be used. Conditions, such as quotas, which may cause students to exert pressure at home to meet sales goals, will be avoided. No prizes or cash awards can be given from the proceeds of the fundraiser. At no time should a sponsor purchase items directly with the money collected.

2016 -17 Campus Accounting Manual Updates Disbursement Voucher • Updated to include – Student President’s Signature – TRS retired employees – 1099 Vendors Journal Voucher • Updated to include – Student President’s Signature Fundraising Application • Updated to include – Student President’s Signature – Section on Projected and Actual Expenditures

2016 -17 Campus Accounting Manual Updates Activity Clubs: Student Authorization to Expend Funds Requirements (Grades 6 -12) • All clubs required to establish student Officers – President – Vice-President – Secretary – Treasurer • Required to: – Hold monthly meetings – Keep minutes

2016 -17 Campus Accounting Manual Updates Preferred Methods of Payment • Check • Money Order • Last option is Cash; receipt must be issued and yellow copy submitted to business office. *Refer to the Updated CAM for further specifications

2016 -17 Campus Accounting Manual Updates Web Store • Schools will now be able to accept credit card payments • Fee 4. 25% plus. 50 Accepting Checks • An Acceptable check should contain – – Student Name Club Name Purpose Remitters Driver’s License Number • Unacceptable check – Checks over the amount of purchase – Post-dated checks

Fundraising Vendors Approved by Purchasing Department • For an updated listing of approved vendors, go to the purchasing website: www. sisd. net/purchasing • We ask that the campuses request for the vendors to display their issued SISD vendor pass when on campuses.

Fundraising Vendors Approved by Purchasing Department • Vendors providing food items during school hours, must be approved by the Child Nutrition Services Department and also require the vendor pass • Online vendors do not require a pass as they conduct business via e-mail or telephone

Contract Agreements Very Important • Any type of contracts or agreements pertaining to the fundraiser must be forwarded to the Department of Purchasing for review and approval. • Only the Department of Purchasing is authorized to sign contracts and contractual agreements.

Receipts Very Important • Sponsor must issue cash receipts to students/parents for money received. • All money must be deposited.

NO CASH PURCHASES For any reason

Daily Deposit Requirement Ensure that sponsors understand the following: • Money must be deposited the same day or by the next workday • All money collected must be deposited • Money must be kept in a safe and secure location until deposit is made-(sponsors can purchase a cashbox or one can be provided to them)

Cash purchases/payments are NOT allowed All payments and purchases must be done by a campus issued check.

Request to Expend Funds • • • CASH PURCHASES ARE NOT ALLOWED Expenditures less than <$1, 000 requires principals approval. (Purchase/order can not be placed until approval) Expenditures =>$1, 000 require principals approval and activity accountant’s approval before purchase. (Purchase/order cannot be placed until approval) Principal and/or business office, activity accountant should be notified if there any unpaid invoices from the prior year. Disbursements supporting documentation (invoice/sales slip/attached Request to Expend Funds 1099 Miscellaneous Vendors- Self/employed Vendors- Conflict of Interest

Purchases on Credit are NOT allowed Ensure money is collected and deposited prior to buying any apparel/uniforms/Spirit Packs

Concession/Inventory Sales Reporting • Must comply with City/County Health Regulations relating to food handling (Food Handling Cards). • Inventory Sales Report is required for all concessions sales for both purchased items and donated items. • Amount indicated on Concession Sales Report must equal amount deposited. Indicate on report cash receipt number for money deposited. • All items sold during the school day must comply with the USDA National Guidelines. • It is highly recommended that food donations are avoided. Smart snack calculator: https: //foodplanner. healthiergeneration. org/calculator/

Donations When asking for or receiving donations, ensure sponsors use the Donation Approval Form

NO CASH PURCHASES For any reason

Exiting Procedures The purpose of the exiting procedures is to ensure that all documents, vouchers, checks, receipts and deposit information etc. is accounted for and safely stored. Exiting procedures should be followed when either the campus business agent/secretary, or club sponsor resign or transfer within the district. Before an employee holding one of these positions leaves the campus, the employee’s supervisor must have them complete an Exiting Employee Form and forward the completed form to the Student Activities Staff Accountant. If the administrator prefers, the exiting procedures can be handled by the Internal Auditor.

Key Points: • Be aware of the danger of fraud • Create a culture of honesty, starting at the top of any organization or department/campus • Follow policies that prohibit fraud • Establish systems to monitor fraud • Periodically evaluate the systems for effectiveness Financial Responsibility Guide Copyright 2011 TASB

District Legal/Local Policies The following policies address the prevention of fraud and financial impropriety: Financial Ethics—CAA Code of Ethics for Employees—DH Compliance with Accounting Regulations—CFC Activity Fund Management—CFD and FJ Regulation Financial Responsibility Guide Copyright 2011 TASB

NO CASH PURCHASES For any reason

SISD Web Resources SISD policies on Activity Accounting: http: //pol. tasb. org/Policy/Search/444? filter=CFD SISD policies on Financial Ethics: http: //pol. tasb. org/Policy/Download/444? filename=CAA(LOCAL). pdf SISD policies on Code of Ethics: http: //pol. tasb. org/Policy/Download/444? filename=DH(XHIBIT). pdf SISD policies on Standards of Conduct: http: //pol. tasb. org/Policy/Download/444? filename=DH(LOCAL). pdf SISD policies on Gifts and Solicitations: http: //pol. tasb. org/Policy/Download/444? filename=FJ(LOCAL). pdf SISD Regulation on Fundraising Guidelines: http: //www. sisd. net/cms/lib/TX 01001452/Centricity/Domain/93/FJadreg. pdf SISD Employee Handbook: http: //www. sisd. net/cms/lib/TX 01001452/Centricity/Domain/37/Employee%20 Handbook%2015 -16%20 Final-1%203. pdf

Additional Web Resources Texas Comptroller’s Bulletin: School Fundraisers and Sales Tax: http: //www. cpa. state. tx. us/taxinfo/taxpubs/tx 94_183. pdf Module 5 Site-based Decision Making Manual (See Activity Fund Accounting Sec 5. 5): http: //tea. texas. gov/Finance_and_Grants/Financial_Accountability/Financial__Accountability_System_Resource_Guide/

Live. Binder http: //www. livebinders. com/play? id=1990768

It happens…be vigilant http: //www. wsmv. com/clip/11600870/cheerle ader-coach-resigns-after-questions-aboutmishandling-money

Activity Fund Accountant Karen Edens Staff Accountant-Finance Department Contact Information: Phone- 915 -937 -0107 Email- kedens@sisd. net

Contact Information Jose A San Miguel Internal Auditor-Finance 915 -937 -0108 jsanmi@sisd. net Fraud Hotline: (915)937 -0199 fraudhotline@sisd. net Marta C. Carmona Internal Auditor-Curriculum and Instruction 915 -937 -0132 mcarmo 01@sisd. net SISD Internal Audit Dpt. 12440 Rojas Dr El Paso, TX 79928

A little auditor humor~

Questions~

NO CASH TRANSACTIONS For any reason