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Training Manual – Activity Account
Importance of the Activity Account
Internal Controls - Responsibilities
This responsibility is a very important one. The Colorado Department of Education (CDE) considers these accounts “Agency” funds and holds the school district responsible for them. The Board of Education also receives a report about the activity of the accounts.
At each of our schools there are two people responsible for the administration of the student activity account. These two people are the principal and either the building secretary or bookkeeper. For the remainder of the manual, the building secretary will be known as the bookkeeper.
Audit
The Finance Center will be auditing your data on a monthly basis at secondary schools and quarterly at elementary schools. Any discrepancies will be reported to the Superintendent on a case-by-case basis.
Each year, through a random sampling, the outside auditors may select your Activity Account to be audited at fiscal year end.
There are possibilities that sales tax auditors can examine your books as well. Authorized Account Signers
There are two signatures required on every check written – the principal and the bookkeeper (in one case an Assistant Principal is on the account). If one of the checks is written to either the principal or the bookkeeper, another person must sign the check. Three additional signers are Kevin Smelker, Assistant Superintendent of Support Services, Dana Thomson, Director of Finance, and Lori Hawkins, Accounting Supervisor. They are located at the Finance Center. Please allow adequate time if you need a signature from one of these three.
All checks must be authorized before printing and signing. Security
Your check stock, cash and checks are your responsibility. You must do everything to ensure safekeeping of these items. If a theft occurs, investigations will be conducted. The
combination to the safe should be changed at least once a year, more if there is turnover. All cash and checks need to be deposited before district breaks.
2 Information
Most of the information I am giving you can be found on the Finance Center’s website. www.hsd2.org
Choose Departments / Finance / Additional Info tab and Student Activity Inappropriate Use
Personal checks will not be cashed out of currency on hand or an activity account deposit. PTA/PTO funds cannot be run through your Activity Account. These organizations must have their own accounts since they are separate from the school district and do not qualify under our tax-exempt status. The VIP’s are a district group so they are allowed to have charges in the activity account.
Individual groups within your school (i.e. Student Council, Band, etc.) are not authorized to set up their own checking/savings accounts with a bank.
Please remember the activity account money is for the betterment of the students. Financial Transparency
Harrison School District 2 is required to post all activity account check registers on the HSD2 website. Please make sure that you are being very diligent with your activity account monies. They will now be public record and the transactions can be requested to be viewed (only through a formal request through the Finance Office) by the public.
Revoking your Activity Account
Failure to follow each and every rule/procedure/policy listed in this manual may result in your activity account being revoked.
Training
There are many different ways to get to the same place in QuickBooks. Feel free to use shortcuts.
Some of the forms and screens may be slightly different. The overall general procedures will be the same.
3 Single-User Mode
For some procedures you will need to be in single user mode. Click on the File menu. Click on Switch to Single User Mode. When you are done, you will need to switch it back. Click on the File menu. Click on Switch to Multi User Mode.
Chart of Accounts
To run a list of your chart of account, click Lists and choose Chart of Accounts. The 126xxxx accounts are sub-banks of 126x000 Cash in Bank.
The 010,011, 012 are your sales tax cash sub-bank accounts. These balances should be the same as your 210, 211, 212 sales tax liability accounts.
An account that starts with a 2 is a liability account. An account that starts with a 3 is an equity account.
An account that starts with a 4 or 9 is a revenue account. (Used for Cash Receipts) Accounts that start with a 5, 6, 7, or 8 are expense accounts (Used for Checks written) Sub-Banks
Even though you have only one checking account with UMB, with QuickBooks you have the ability to create many sub-banks. You can have one sub-bank for every club, class, fundraiser, project, etc. This will help keep track of your expenses and to see if there is enough money in the sub-bank to issue more checks. This will also assist you in telling if the fundraiser was profitable. We encourage many sub-banks.
Cash in Bank – Other
Never use the generic Cash in Bank to deposit money into nor to cut a check. It will need to be reclassified into the proper sub-bank.
Negative Sub-Banks
Per Harrison School District 2 School Board Policy, sub-banks should never run in the negative. This is like borrowing from one sub-bank to fund another sub-bank which is unacceptable. There are three exceptions to this rule. At the secondary level, your Administration #2 sub-bank can run in the negative. Your Administration #2 sub-bank has all of the officials, referees, registration entry fees, etc. that will be reimbursed back to you from Harrison School District 2 by preparing a check request (with proper approvals and backup) and submitting it to Accounts Payable . The second exception is if products purchased to be sold at a club’s fundraiser may cause the sub-bank to be temporarily negative, as long as the proceeds are deposited into the sub-bank that paid for the products. Please be very mindful and not to buy so much in excess
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otherwise the fundraiser might not be able to recoup the losses. Please also note if the material being purchased is dated (i.e. Calendars). The third exception is your state and county sales tax accounts. The State of Colorado uses rounding to calculate sales tax so on occasion, your state and county accounts might go in the negative (approximately $1). Please do not do a funds transfer. This is an acceptable negative balance and you will not get an audit finding.
Creating New Sub-Banks
In QuickBooks, go to the menu item Lists. Choose Chart of Accounts. Click on the Accounts Button on the bottom of the screen. Choose New Account. Choose
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I have attached an example of an account that has already been filled in.
Type – choose Bank
Number – you will need to assign a number using the following 126__ _ _. Please use your best judgment by looking at already created sub-banks. Try to keep the sub-bank names
alphabetical.
Name – put the name of the sub-bank. This can be a club, fundraiser, class, project, etc. Now make sure that a check mark is beside Sub-account of 126x000 – Cash in Bank. This is a very important step. If this is not done, your cash will not balance on the reconciliation.
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Fundraising
Things to do before beginning a fundraiser:
Nutrition Fund Raising Application – needs to be submitted to Tammy Brunnar in the Nutrition Services office to see if the fundraiser is in compliance with CDE.
District Policy ADF included in the Appendix Helpful Hints:
Three exempt fundraisers per building, per year
School Day is described as midnight before through 30 minutes after the last bell
This includes ALL food and beverage sold. Example: holiday sales, candy grams for Valentine’s day, adults brining in any items their own children are selling, etc.
One point of contact person per building. This will help in the tracking process.
When meeting with this point of contact, Tammy will need the nutritionals on food items of interest. This needs to be done prior to signing the agreement with the prospective vendor. Tammy places the nutritionals into the smart snack program and the program tells her if the product will be allowed to be sold on campus.
When product is approved, she will place it into a spreadsheet for tracking, etc.
Duration of fundraiser will be one week/7 days unless otherwise approved by Tammy Brunnar.
Alternatives:
Walk-a-thons, read-a-thons, Zumba-thon, 5Ks, Fun Runs
Brax Spirit Cups
Smencils
Greeting Cards
Calendars
Custom School merchandise
Finance also requires a separate fundraising application called SHOW ME ALL THE MONEY. It will need to be turned into Finance for tracking. This is also a good resource for you as you know exactly what fundraisers are going on at all times. You can also track down the money to make sure that it is turned in timely.
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Accountant Center
This is the main home screen. It has everything you will need to do your job.
If you get navigated away from this page, just click on the Tool Bar “Accountant” and Choose “Accountant Center”
In the Tools section, there are links to: Write Checks, Enter Sales Receipts, Reconcile, Transfer Funds and Make General Journal Entries
In the Memorized Reports, there are links to the three reports that you will need: Balance Sheet, Profit Loss and Transaction List by Date. We have adjusted what you will need to print and provide to the Finance Center and include in your Activity Account Folders. Just click on the report name and choose your dates and hit refresh.
The Reconciliation section gives you a current snapshot of the balances in your sub-banks. Be sure to use the Current Balance and always hit refresh to make sure you have the most up to date inform
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Preparing a Cash Receipt
Timing
It is recommended that deposits be done at least once per week. This ensures that any checks are deposited timely and funds are being secured and will not be lost. It is strongly suggested that the deposit is done the same day so that the information is fresh in your mind.
Getting Started
When someone brings you money – stop and hand them a Cash Receipt Count Sheet. This protects you from having someone say that you “stole” money.
Cash Receipt Count Sheet
You and that person will verify the money being turned in.
They need to tell you what sub-bank account to deposit the money.
If a fundraiser, they will give you the information and what is being sold (this will be used in the sales tax calculations).
You will each print your name and sign your name and date when they money was received. Once you prepare your cash receipt in QuickBooks you will fill in the additional information (date deposited and receipt #).
Keep the Cash Receipt Count Sheet with the deposit. It will also be part of your backup for the cash receipt.
Please be sure to note if there are any checks that are older than 30 days. You will get an audit finding if there are checks older than 30 days. By preparing deposits weekly, it will reduce the possibility of lost funds or returned checks. It is also a sign of good stewardship that we put those funds to use quickly.
Some of the schools require the person who brought you the check write a detailed description on why the checks were late. If it gets to be habitual, I will start including the names of the people who brought you the late checks in the audit letters.
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Please see the Appendix I for a full size Cash Receipt Count Sheet. The form is also located on the Finance Center website.
Securing the Money
Put the cash in your safe until you are ready to prepare the deposit. Sales Tax
Please refer to the Sales Tax Excel sheet that was emailed to you by Lori Hawkins. It is also located on the Finance Center page of the www.hsd2.org website. It is located on the Finance page/Additional Info/Student Activity/Sales Tax Spreadsheet. By following these simple instructions, you will have the sales tax calculated for you.
We have included several scenarios and have identified what is taxable and at what rate. Please follow these guidelines. If you have a fundraiser or cash receipt that is not on this list, please let Finance know and we will find out the correct sales tax rate for you.
Please use the spreadsheet as the sales tax will automatically be calculated for you. State, County, and City Taxes – Staff sales, i.e. t-Shirts, etc. with no student purpose at all County and City Taxes – Prepared foods for immediate consumption (burritos, donuts), student planners, yearbooks, books, lanyards, band reeds, t-shirts/uniforms, classroom supplies for student use, i.e. school bookstores, concession sales at sporting events, sales at fundraisers, sales/rentals of cap and gowns, magazines, programs, etc.
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No Sales Tax – Cookie dough, whole cake or pie, GO cards, Gold C books, Entertainment books, services (wearing jeans instead of uniform day), candy singing grams, room rentals (do not specify chair/table rentals, have it all inclusive in the room rental), Book fairs if done by an outside promoter (Scholastic figures the tax) and a copy of the Scholastic invoice must accompany the cash receipt.
The Finance Center will prepare your sales tax return. We will forward to you the Activity Account Request for Funds for approval by your principal. You will then process and mail the payments by the due dates. The due dates are as follows:
1st Quarter ending March 31st – Due on April 20th 2nd Quarter ending June 30th – Due on July 20th
3rd Quarter ending September 30th – Due on October 20th 4th Quarter ending December 31st – Due on January 20th Creating the Cash Receipt
You will need to do one cash receipt for each sub-bank transaction. For example, do not combine student planners with Cheerleading, etc.
In QuickBooks, under the Tools menu, choose Enter Sales Receipts.
Deposit To: There is a drop down menu. This is your sub-bank. Please choose the appropriate one designated by the Cash Receipt Count Sheet.
Template: Cash Receipt
Date: Always check your date to make sure you are on today’s date
Sale Number: A few of the schools keep a simple log of cash receipt numbers (and check numbers) in order not to duplicate them.
Payment Method: There is a drop down menu. The options are cash, check and cash & check. Item: This is your revenue accounts. There is a drop down menu. Please choose the
appropriate one.
Description: Please be very descriptive, using dates, types of fundraisers, what was sold, etc. What you put in the description will also need to be put in the memo field. To copy the description, highlight the words and hit “Control C”. Click in the memo field and hit “Control V.” This is a very important step as when Finance runs their reports, we only can see what is in the memo field (unless we go to each transaction). You will get an audit finding if this is not done correctly.
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Rate: Fill in the amount. Remember if you are using the sales tax spreadsheet to only fill in the amount in the sub-bank line and not the entire deposit. The sales tax will each need to have a separate cash receipt.
Amount: The rate will automatically transfer over to the amount Memo: You will need to copy this from the Description field.
Print your receipt. It will ask you if you want to save, click on Yes. You will need to sign the cash receipt.
If you had cash, you will need to get another person to sign the cash receipt also. Make sure this signature is legible. In lieu of a second signature on a cash receipt, we will accept two signatures on the Cash Receipt Count Sheet if included in the backup for the cash receipt. If you had sales tax on the transaction, create another receipt(s) according to the sales tax spreadsheet.
If you would like to verify if the transaction is coded correction, please go to the Memorized Report section and choose Transaction by Date. You can choose your dates and refresh to see the data. You can checkthe sub-bank, dollar amount, etc.
13 Copies of Checks
Make clean, legible copies of each check (combine to save paper) Preparing the Deposit
You have a 3 part deposit ticket. The white and pink goes to the bank. You keep the yellow with your paperwork. Once the bank receives and deposits the money, you will get the pink one back stamped by the bank. Please keep that with your paperwork as well.
There is no specific way that the money needs to be put together.
The checks need to be listed separately on the deposit ticket. It is helpful to the bank if you run a calculator tape on the checks but it is not necessary.
Keep the deposit secured until the courier picks it up. Backup Paperwork
It is best to include everything. Auditors will never complain that we have too much information.
Printout of the cash receipt (if sales tax you can put all three receipts together)
Copies of any checks
Yellow deposit slip
Pink deposit slip from the bank
Signed Cash Receipt Count Sheet
Any documentation you received with the check or cash, etc.
Keep all together (staple) and put in your activity account folder so it will not get lost. Courier Pick-up
Send the deposit in a blue locked bank bag with the Harrison Courier. Normal routes are Monday, Wednesday, and Friday but times at the different schools will vary.
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Preparing a Check
Authorization
No money will be spent without the prior approval of the Principal or the Activity Director. No check will be issued blank, made to cash or bearer.
No check will be issued without the computer generated vendor name.
The Bookkeeper must verify that the funds are available in the sub-bank and the club sponsor must sign off on the Request for Funds.
Activity Account Request for Funds Please fill out this form completely.
There are two options: Pre-Authorization to be Reimbursed and an Advance.
The Pre-Authorization to be reimbursed must be approved before the funds are spent. If a Request for Funds, ONLY ORIGINAL RECEIPT or INVOICE will be accepted for payment. If an Advance is requested, the person making the expenditure will need to estimate the amount, get approval, get a check from the Bookkeeper made out to the vendor, make the purchase, and bring back the receipt and any remaining funds to the Bookkeeper. The
Bookkeeper will give the person the Cash Receipt Count Sheet to fill out and prepare a deposit according to the guidelines above. The money needs to be deposited to the sub-bank of which it was paid. If the person over spent the advance, the person will need to fill out another Activity Account Request for Funds and get proper approvals. The Bookkeeper will issue the difference in another check. ONLY ORIGINAL RECEIPTS will be accepted for payment.
16 Equipment Purchases
Neither non-capital (between $500-$5,000) nor capital equipment (over $5,000) as defined in Board Policy under Fiscal Management, File DIC, purchased will be paid for directly from the Activity Account. These items need to be purchased with a district purchase order, and then reimbursed to the district from the Activity Account.
Appropriateness of Purchases
If the money was raised for a particular event, then it has to be used to pay for that event. Coca-Cola – These funds are discretionary with the approval of the principal.
Book Fair – These funds can only be used to purchase books.
If the expense is one that is normally paid from the General Fund, then it should NOT be paid from the Activity Account unless otherwise authorized.
If a check is requested from Finance from the General Fund, please allow enough time for a check to be processed from Finance. Checks should not be cut from the Activity Account for the sake of convenience. Invoices need to be turned into Finance by Tuesday of each week to have a check cut on Friday.
There are many options available to expend other General Fund monies i.e. District PO’s, Procurement Cards, etc.
If an expense is made from the Activity Account and is then requested to be reimbursed from the General Fund and it is not related to student activities, the request will be denied by the Finance Center.
Some examples of expenditures that are not appropriate to pay out of the Activity Account are:
Travel expenses relating to teacher attending conferences
Meal expenses for an interview committee
Salary expenses including stipends
General Fund Postage
Computer purchases Administration 2 or ADM 2
The only circumstance where any Fund will reimburse your Activity Account is for student activity (athletic and non-athletic), i.e. payment of officials, tournament registration fees, etc. This account should be balanced to the outstanding reimbursement requests at least quarterly and submitted to Accounts Payable in Finance at least quarterly. You will need to submit a check request to Finance detailing the account numbers to be charged. The backup would be copies of all of your backup documentation for each check coded to the Administration 2
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bank. When you receive the check back from Finance, you will need to prepare cash receipt depositing the check back into the Administration 2 sub-bank.
Officials will be paid on the day of the event or soon thereafter. Based on information received from the Athletic Director and governing bodies, there will be a list of who is assigned to
officiate at the event. The Cash Disbursement Validation form will be filled out by the Athletic Director and given to the bookkeeper prior to the event. The AD will fill in the Official’s Name, Sport/Position and the Disbursement Amount columns. The Bookkeeper will prepare computer generated checks out of the Administration 2 sub-bank with the official’s name being pre-printed. The Bookkeeper will then fill in the “Disbursement Date/Check #” column. In the event that a different official arrives at the event, do not pay the official in cash. The AD should return the incorrect check, along with the Cash Disbursement Validation form so the
Bookkeeper can issue the correct check (voiding the first check). Make sure that you cross a line through the name on the Cash Disbursement Validation form.
Once the Cash Disbursement Validation form is completed, a copy of the form needs to go to the Finance Center – Payroll.
Check Signing
There ALWAYS needs to have 2 Signatures on each check – the Bookkeeper and the Principal (or Assistant Principal if an authorized signer on the bank account). If the check is made out to one of the signers, then someone else needs to sign the check. Dana Thomson, and Lori Hawkins are also authorized signers on your Activity Accounts. Please allow enough time for the check to be signed and delivered by the courier. You will get an audit finding if this is not done correctly.
Once signed by the 2 check signers, make a copy of the check and put with the backup of the check request.
Preparing the Check Toos – Write Checks
Bank Account: Choose the sub-bank that is designated by the approved Request for Funds. The balance in that sub-bank appears in the upper right hand corner just above the Check #.
Pay to the Order: There is a drop down menu. You can also start typing. If a New Vendor, please see the section below.
No: Verify that this is your next check number. Date: Make sure it is today’s date
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Address: Verify the address from the invoice if applicable
Memo: This memo field will print on the check and show up on the transaction reports that the auditors will see.
Account: Choose the appropriate expense account. Please see below under Coding of Transactions for various classifications.
Memo: You will need to copy the memo from the Memo in the check field above. To copy the description, highlight the words and hit “Control C”. Click in the memo field and hit “Control V.” This is a very important step as when Finance runs their reports; we only can see what is in the memo. You will get an audit finding if this is not done correctly.
Amount: This will fill in automatically
Special Note: Try to keep it to 1 line only. Otherwise the report will show as a “Split” and we cannot tell what the expense account is used (unless we look at every transaction individually). Print: It will ask for a check number. Make sure the check style is “voucher.” This will give the check and two stubs on one page. Verify that this is your next check number. Also, this number needs to match the No. field above. You might want to consider using a check log so not to duplicate checks. Select Ok
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First, you will need to check in Alio to see if Harrison has the vendor set up. If so, then it is okay to proceed with setting up the new vendor in your activity account.
If not, the district requires that for every new vendor, you send them a New Vendor Request Form to fill out. Please keep the request form in a file in your office and input all of the
information into QuickBooks (i.e. address, social security number, etc.) This will ensure that we have all of the proper information should we need it.
The easiest way to do this is type in the name of the company, hit enter and choose Quick and choose Vendor and click OK. You can then fill in the address information, etc.
Coding of Transactions
The Finance Center requires certain transactions be coded accordingly.
Professional Services (5261240) – Referees, Officials, Custodial Services (HSD2), DJ’s Student Transportation (5261280) – Field Trips and Transportation other than HSD2 Student Transportation (8121130) – District Bus Transportation (HSD2)
20 “Cancelling” Check Backup
On the new Activity Account Request for Funds, we included a space for “cancelling” the check backup. You will need to fill out the Date of Check, Check Number and your signature on the Activity Account Request for Funds and each piece of documentation included in the check backup. We do this so that it is not as likely as the receipt or invoice could be reimbursed twice. Some schools use a “Paid” stamp and add the other information.
Backup Check Documentation
You will include the following with each check transaction:
Copy of the signed check issued to the vendor
Approved Activity Account Request for Funds – with “cancelling” information
Original receipt or Invoice – with “cancelling” information
If an official or referee, the Cash Disbursement Validation sheet – with “cancelling” information on it. (Don’t forget to send a copy to Finance Payroll)
Any other information pertaining to why you wrote the check, i.e. emails, receiving reports, etc. – with “cancelling” information.
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Voiding Checks
Please be very careful in doing this!
Voiding should only be used for checks that are in error. The best scenario is if the actual check is in your hand.
If you do not have the check in hand, you will need to do some research first. For example, if someone calls and says that they lost their check, you will need to check with your bank to see if the check has cleared.
You will need to do a stop payment on the original check (so it cannot be cashed). Contact your bank or Lori Hawkins at the Finance Center for assistance with this procedure.
Once all of the information is confirmed, to void the check you will need to do the following: Click on Lists/Chart of Accounts
Choose the sub-bank that the check came from Find your check and click on the check number Right mouse click
Choose void check
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Write “VOID” across the signatures. Keep the check in your activity account folder. Attach any pertinent information as to why you voided the check.
Never void a check that is in a previous fiscal year. The system should be set up not to allow you to do this. Please call the Finance Center and we will walk you through posting a journal entry to void this type of check.
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Stale Dated Checks
Identify any checks written over 6 months ago. You cannot void a check from a prior year. You will need to process a journal entry for those checks. If you are being proactive, you will call the vendor before the checks get to the 6 month mark.
When you do follow up with the vendor and they say that they never received the check, you will need to reissue them a current check and void the previous check. If before the 6 month mark, please see the instructions on voiding checks. It is much easier to void a check and reissue than it is to stale date a check. If after the 6 month mark, the instructions are as follows:
On the stale dated check, pull up the check. In the memo line, add the following “Stale dated mm/dd/yy” using the current date. Documenting stale checks this way will give us a paper trail should we need it in the future.
Make a copy of the “Uncleared Checks” portion of the reconciliation report and mark the check you stale dated. Write down the sub-bank that the check originally came from. You will add this to the backup for the stale dated check and will need to go in your activity account folder. Prepare a journal entry to clear the stale dated check. A check takes the money out of the sub-bank (credit). Stale dating the check puts the money back in (debit).
Activities/Make a Journal Entry Date - Today’s date
Entry # - Assign one (I suggest keeping a log of journal entry numbers or you can hit the “previous” button to see what previous number was used)
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Account – There is a drop down menu button. Choose the appropriate sub-bank of the original check
Debit - Amount of the check
Memo – Example “Stale Dated check #4725 10/07/10” Name – Choose the vendor
Go to the next line
Account - Choose the following Account 4261240 Miscellaneous Income Credit - Amount of the check (it will fill it in for you)
Copy or retype the description
Print Screen and Print from Word so you will have a copy of this transaction Click Ok
Verify that you did the journal entry correctly by clicking on the sub-bank. Verify that the money is added to the sub-bank.
If the vendor is requesting the check, reissue the check to the original accounts that you used. Note on the replacement check what check number was stale dated and when.
File all of the documentation in the Activity Account folder.
On your next reconcilement, you will need to mark the check as ‘cleared’ and the
corresponding journal entry debit to show them as cleared items. This will cause the checks and general journal entry to disappear from your next reconciliation report.
Never void a check for stale dating unless it is before the 6 month mark. When you void, you do not have a history of when this occurred or why.
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NSF Checks
There is only one correct procedure on how to do a NSF Check in QuickBooks – via General Journal Entry. No matter if the funds are recovered you will still need to prepare a journal entry.
Once you receive the NSF check from the bank, call the person and try to handle it on your own. Tell them they have 3 days to bring you cash, money order or a cashier check (no more personal checks). Convince them that it will be much more expensive if we send it to Checkway Collection Agency (up to 3 times the check amount). This is another reason why we expect you to do deposits timely.
If you do not get the money in the 3 days time frame, make a copy of the check and send the original to Finance. The copy of the check will go in your activity account folder for backup of the journal entry.
Process the General Journal Entry even if you receive the money. Prepare a Cash Receipt for any money you receive.
Example: Team 8G had a Fundraiser. A $20 check got returned. Activities/Make Journal Entry
Date – Date on Bank Notification slip Entry # - assign one (consult the log)
Account – Revenue account that it was originally posted. In this example, it would be Fundraiser 4261234
Debit – Amount of NSF check Memo – “NSF Check # - name” Click on the next line
Account – Sub-bank that it was originally posted. In this example, it would be Team 8G 1261658
Credit – Amount of NSF check (it should be filled in for you) Memo – Retype or copy “NSF Check # - name”
Print Screen – Keep in the Activity account with a copy of the NSF check Ok
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If you do receive the funds, you will need to prepare a deposit and post back to where it was originally posted (Fundraiser and Team 8G).
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Transferring Money from One Sub-Bank to Another
As indicated earlier, there should be no negatives in your sub-banks unless it is one of the three exceptions. If you determine that your sub-bank is in the negative, you must transfer money from one sub-bank to another.
You must use appropriate sub-banks to do these transfers. Do not take money away from the students to move to hospitality. Some schools have a “hospitality” fund to cover staff
expenses.
Do not do loans from one sub-bank to another. For example, do not have the Cheerleaders borrow $1,000 from the Band. This is very hard to track and remember who owes who what. I strongly suggest getting approval from your Principal on these transfers in the form of written note or email. I would personally not want the responsibility of deciding that information. If you must have a sub-bank in the negative (i.e. bought student planners in bulk at the first of the year to get a greater discount) and it is justified, have the principal write a note stating that fact. The note should also include if there is a plan (i.e. fundraisers) to bring the account into the positive and a date that it is expected to happen. Place it in the Activity Account folder. It will still be a finding on the audit letter but I will list the explanation. A copy of the note will also need to be turned into Finance.
Any negative sub-banks, including the Admin #2 and fundraisers, planners, uniforms, etc. must be cleared up before summer break.
Preparing the Transfer Activities/Transfer Money
Transfer Funds from – Choose the appropriate sub-bank Transfer Funds To – Choose the appropriate sub-bank It will show you the ending balance in each sub-bank Date – Today’s date
Amount – The amount to be transferred
Memo – Funds Transfer “to cover negative” per ___. I would add the initials of the person who authorized it
Print Screen and print from Word. This will go in your backup documentation Click Ok.
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Bank Reconciliation
You will receive your bank statement around the first week of the month for the previous month’s transactions.
Before you begin, check for any miscellaneous charges i.e. new deposit slips, miscellaneous fees, etc. You will need to do a journal entry before you begin your reconciliation. Call me and I will walk you through it.
Activities/Reconcile
Account to Reconcile – 126x000 – Cash in Bank (drop down button)
Enter the Ending balance from the bank statement (be sure to choose the ending balance) Use your bank statement to determine which checks and deposits have cleared the bank. In QuickBooks, click to put a check mark in the field.
BE SURE NOT TO CLICK ANY CURRENT MONTH’S TRANSACTIONS
. Only clear the checks and deposits that were for the period on the bank statement. Be sure to check for the check number and dollar amounts.If you posted a NSF or a stale dated check, you may check off those transactions as well (you should have an Other Credit and corresponding Payment).
When you are done – look at the lower right hand corner of the screen. If you have a difference and the balance is not $0, something is wrong. DO NOT PROCEED.
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This is the first screen that will pull up. You will need to enter the ending balance here.
This is where you need to enter the STATEMENT DATE of the last day of the
month you are reconciling
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I really like this feature – Hide transactions after the statement’s end date.
The reconciliation is done the same as before with “clicking” on the transaction to clear it. Once you have completed, you may either “Reconcile Now” or “Leave”. If you leave and come back in, your dates and bank statement balance stay so you don’t have to re-enter them. Make sure the Difference is $0 before continuing to Reconcile Now
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The Cleared Balance will balance to your bank statement.
Now run the Balance Sheet and make sure that the Register Balance as of 6/30/2013 matches the balance sheet total of Total Cash in Bank
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If you need to reprint the reconciliation report from any previous period: Reports
Banking
Previous Reconciliation
35 You can choose the statement ending date Type of Report – Choose Both
In this report, include
Choose Transactions cleared at time of reconciliation – this will print as a PDF File
This one is a snapshot of the actual reconciliation that was turned into Finance. It will pull up the PDF file and you can print it from there. You should have two different PDF files, a detail and a summary.
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If you totally screw up and use the wrong dates or if you don’t balance, there is an “Undo Last Reconciliation” and you can start over.
Check the following to find your discrepancies:
Check the ending balance on the bank statement
Double check your deposits, look at each deposit total
Double check your checks, look at each check total
If you added any new sub-banks, make sure that they were set up properly. Make sure that they are a sub-account of Cash in Bank. You will have to leave the reconciliation to verify this.
If you still cannot figure it out, call us. DO NOT PROCEED. If you do, it will “create” a transaction balancing for you. This is not what you want.
If you have to stop click “LEAVE.” Do not click done. When your difference is $0, click on Done.
You will get a Reconciliation Complete Box. You want the Full Reconciliation Report
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Once everything is complete, you will need your Principal’s signature. If the bank statement is not done properly, you will get an audit finding.
Reports to Send to Finance Center
The reports are normally due by the 15th of each month with the exception of the May statement. This is due before you leave for summer break. Finance has reporting deadlines that we have to meet. We submit your information to Harrison Board of Education and if we receive your information late, it causes us to be delayed.
Send the following to David Barcus at Finance:
Copy of your Bank Statement (front and back). She does not need the copies of the cleared checks and deposits included on the back pages of the bank statement.
Full Reconciliation Report signed by you and your Principal
Profit and Loss – Standard for the prior month
Balance Sheet – Standard, dated the last day of the previous month
A statement signed by the Principal explaining any negative balances in any sub-banks other than Admin #2
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Putting it All Together Monthly Activity Account Folder
Every financial transaction that takes place must have supporting documentation and be filed in the Activity Account monthly folder. You are required to keep a monthly file that will include at a minimum the following records. The sections can be put in the file according to how much room is in the folder (i.e. the check section won’t fit on the same side as the cash receipt section). Use your best judgment. The Activity Account Folders must be kept for 7 years. Section 1:
Original bank statement,
Copy of the signed (by the Principal) Reconciliation Report and backup from QuickBooks
Standard Balance Sheet (Reports/Profit & Loss/Standard – choose your dates)
Standard Profit & Loss Statement (Reports/Balance Sheet/Standard – choose your dates)
A statement signed by the Principal explaining any negative balances in any sub-banks other than Admin #2
Section 2:
Check Detail Report (Reports/Other Reports/Check Detail – choose your dates)
Deposit Detail Report (Reports/Other Reports/Deposit Detail – choose your dates)
Transactions by Account Reports (Reports/Transaction Detail Reports/By Account – choose your dates)
General Ledger (Reports/Other Reports/General Ledger – choose your dates)
Section 3:
Check section – each check would have its own check packet In a check packet would be:
The copy of the signed check,
The approved Request for Funds or PO’s
Backup documentation to include original receipts, invoices, etc.
Receiving reports
Any other pertinent information as to why you issued the check Section 4:
39 In the cash receipt section would be:
Copies of cash receipts
Cash Receipt Count Sheet
Deposit Slips (2)
Copies of checks
Backup documentation
Any other pertinent information as to why you received the money Section 5:
Additional Information:
All source documents that you have used to expend monies
Voided checks and backup documentation
Stale Dated Checks and backup documentation
Transfer Funds and backup documentation
General Journal Entries and backup documentation
NSF check copies and corresponding general journal entry
Statements from CD’s, etc.
Backup
You should backup your information at least once per month. You may copy it to a flash drive or in a secure place on your desk top. Choose File, Backup. Also on the menu buttons, there is a button called “Backup”. My suggestion is to save it to somewhere completely different than where your main file is located. Rename it “School Name Backup mm.dd.yy”
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Helpful Hints – What Auditors Check We check the reconciliation to the last month’s bank statement.
We check sub-bank accounts for inappropriate negative balances.
We check the tax sub-bank accounts to the liability accounts to see that they equal
Deposits
o Does the deposit amount track to the bank statement? o Do the deposit tickets match to QuickBooks?
o Is sales tax calculated correctly?
o Does the cash amount listed agree to the receipts?
o Are the receipts signed and approved by a sponsor (1 signature if just checks, 2 if cash)? We will accept the Cash Receipt Count Sheet as the signature on the receipts.
o Is there a bank validated deposit ticket?
o If there are checks deposited, are there legible copies of those checks?
Are there any checks that are older than 30 days? o Are the sub-bank and revenue accounts appropriate?
Checks
o Is there an approved Activity Account Request for Funds or approved Purchase Order?
o Is there a detailed description on the check and in the memo field? o Does the check amount agree to the backup documentation? o Does the payee name agree to the backup documentation? o Does the check date and number agree to QuickBooks?
o Is all of the backup documentation “cancelled” with the pay date, check number and signature?
o Did we pay off an original document? o Did two check signers sign the check? o Is the check signer authorized?
o Is this an appropriate expenditure for the activity account?
If you have any questions feel free to contact us:
Jill Beyer, Accounting Technician 579-2039 Secondary School Auditor David Barcus, Accounting Technician 579-2301 Elementary School Auditor Lori Hawkins, Accounting Supervisor 579-2053
41 Appendix I
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Activity Account Request for Funds
Select One: Pre-Authorization to be reimbursed * Advance **
Date: ____________________
Name of person requesting the Reimbursement or advance: __________________________________ School: _____________________________________________________________________________ Amount: ____________________________________________________________________________ Club Account to Charge Expense to: ______________________________________________________ Reason for Expenditure: ________________________________________________________________ _____________________________________________________________________________________ Check to be issued to following Vendor: __________________________________________________
Approvals:
_____________________________________________________________________________________ Concurred (Club Sponsor Signature)
_____________________________________________________________________________________ Approved (Principal Signature)
*Pre-Authorization to be reimbursed must be approved before the funds are spent
** Excess funds remaining after a purchase is complete are to be turned into the Bookkeeper on the next business day.
Date of Check: ______________________________ Check Number: ______________________________ Signature: ______________________________
Please write the above on all of the backup documentation
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NUTRITION FUND RAISING APPLICATION
_____________________________________ ___________________________________
Contact personand phone number Location/School
ITEMS TO BE SOLD: ________________________________________________________
START DATE:__________________________ END DATE:___________________________
DESCRIPTION OF FUNDRAISING PROJECT:__________________________________________________________ _____________________________________________________________________________________________________
______________________________________________________ ___________________
Staff Signature Date
_______ APPROVED ________ DENIED - _______________________________________________________________ (REASON)
_______ APPROVED W/ SPECIAL CONDITIONS __________________________________________________________
______________________________________________________ ____________________ Nutrition Services Administrator Signature Date
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