ASB Operations September 2016 Overview
ASB Operations September 2016 Office of Secondary Schools and Financial Accounting agenda encompasses topics such as ASB Constitution, Budget, Seller's Permit, Tax Returns, Bank Reconciliations, Financial Reports, and Record Retention. The ASB Constitution covers the criteria for student clubs, election of officers, fund management regulations, budget committee development, and record retention guidelines. The Budget section details budget philosophy, development process, overspending prohibition, and budget schedule establishment. Various resources such as the Online ASB Handbook and FCMAT Associated Student Body Accounting Manual are mentioned to support the administrative procedures.
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ASB Operations September 2016 Office of Secondary Schools and Financial Accounting
Agenda ASB Constitution ASB Budget (Preliminary and Final) Seller s Permit Quarterly Tax Returns Use Tax Sales Tax Bank Reconciliations Monthly Financials 2
ASB Constitution Law of the ASB Land at Your Site Administrative Procedure No. 4353, Associated Student Body, General Constitution and bylaws shall contain: Criteria for approval of student clubs and organizations, if any, and provision for their general control and activities, including custody of their funds. Provision for election of officers by students in accordance with regulations approved by the principal. 3
ASB Constitution Constitution and bylaws shall contain (cont.): Regulations for management of student body funds, including provisions for an annual budget to be developed by a budget committee composed of elected students and faculty members (secondary schools only) (Procedure 2227). Provisions for a principal to make necessary payments in vacation periods and in emergencies. Regulations for inventorying merchandise purchased for resale. 4
ASB Constitution Record Retention: Perpetuity with signature approval of the ASB Officers, ASB Advisor and Principal each year Resources: Online ASB Handbook FCMAT Associated Student Body Accounting Manual Sample ASB Constitution Pages 221-226 5
ASB Budget Administrative Procedure No. 2227, Student Body Budget Budget Philosophy. The ASB budget should be balanced. Overspending is prohibited Budget Development. Student-faculty finance committee develops recommended budget. Best Practices: Online ASB Handbook Collect the Profit and Loss (P&L) from the prior 3 school years (July 1st- June 30th) Ensure the committee supports the ASB students in comparing the P&Ls from the prior 3 years Examine transaction details Ask questions, discuss and project to the best of your ability, monitoring monthly via monthly reports 6
ASB Budget Budget Development (cont.) Establish a time schedule so the preliminary budget may be adopted by May 1, and the final budget, no later than October 1. Develop a procedure to request budget consideration for activities and organizations. Requests for budget consideration should be accompanied by current inventory of equipment and supplies. An ASB inventory should always be kept on file and taken at the close of every school year (AP 2360) Inventory sample Resources: Online ASB Handbook 7
ASB Budget Budget Approval. The governing board of the student body approves budget. Student-faculty finance committee presents recommended preliminary and final budgets in a form includes: Overall ASB Budget Summary sheet for each account Copy of budget for each activity Record Retention: Prior 3 years and current year with signature approval of the ASB President, ASB Treasurer, ASB Advisor and Principal each year 8
ASB Budget Budget Reporting. Copies of approved preliminary and final budgets kept on file with approval signatures for audit. Budget Control Principal may approve necessary budgeted encumbrances for the next year, following approval of the preliminary budget. ASB expenditure requests submitted on student body requisition with accompanying meeting minutes demonstrating the approval. 9
ASB Budget Budget Control (cont.) Budget revision approved by student council must precede expenditures for items not included in the budget, or for over-expenditures for items budgeted. Authorization for expenditures expires at the end of the fiscal year, except when funds for expenditures are encumbered by outstanding purchase orders. Purchase orders carried over to the next fiscal year (July 1 June 30) shall be liquidated by November 30. 10
ASB Budget Trust Fund Accounts Student groups depositing funds in a student body account shall be required to submit club paperwork, including a budget plan, for approval prior to any expenditures. Requisitions for expenditures from trust accounts require signatures of certificated club advisor, student chairman of specific club or group, financial clerk, and principal or vice principal. 11
ASB Required Documents As Financial Clerks, please request a copy of the following items from your ASB to be on file in your office for when the auditors come to your site ASB Constitution ASB Preliminary Budget ASB Budget ASB Inventory ASB Meeting Minutes 12
Sellers Permit A seller s permit is a state license that allows sales to be made in California. Allows the ASB to issue a resale certificate for purchases of inventory items without paying tax. General resale certificate Does not allow buying items for use without paying tax. 13
Sellers Permit Use when purchasing tangible items the ASB intends to sell that would ordinarily be subject to tax if sold at retail PE clothes Locks Lanyards Permit number 25065709 14
Quarterly Tax Returns Sales Tax General Rule. Sales of tangible personal property are taxable. Tax imposed on retailer. Seller reports and pays the sales tax due on items sold at retail in California. Tax measured by the gross receipts from the sale. Example 1 Example 2 Sales price Tax applies to $ $ 10.00 10.00 Original price Promotional sales price Tax applies to $ $ $ 10.00 5.00 5.00 16
Quarterly Tax Returns Sales Tax In general ASBs must pay sales tax on what they buy and sell. When student clubs or groups sell t-shirts or sweatshirts made or designed by the group, the profit is not taxable provided that the sales are intermittent. ASBs operating a student store selling merchandise are subject to sales tax laws. Sales made in a storefront outlet such as the student store do not qualify as intermittent or irregular. 17
Quarterly Tax Returns Sales Tax Meal and food sales Student meals. Tax does not apply to sales of meals or individual food products to school students when the sales are made by school districts and student organizations operating a restaurant, vending machine, or vending stand in an educational institution. To qualify for the tax exemption, meals must be served to students at a time regularly set aside for meals, not at recess or breaks. (Reg. 1603) 18
Quarterly Tax Returns Sales Tax Meal and food sales (cont.) The following food sales are taxable: Sales of edible nonfood products such as carbonated beverages unless the products are sold as part of a meal. (Reg 1603) Sales of food to students and nonstudents in a place where admission is charged such as an athletic event even when the event is held at a school. (Reg 1603) Sales of meals and food products to nonstudents. (Reg 1603) 19
Quarterly Tax Returns Sales Tax Yearbooks distributed to students Tax does not apply to the receipts from distribution of yearbooks. A school district or student organization is considered the consumer of yearbooks it sells. (Reg. 1590) Tax applies to charges for the preparation of yearbooks. (Reg. 1590) 20
Quarterly Tax Returns Use Tax The rate is the same for sales tax and use tax (8.0%). Tax imposed on consumer. Consumer owes and pays the use tax due on items purchased without payment of sales tax. Tax measured by purchase price. Shipping charges are generally exempt from tax provided they are: For delivery directly to the purchaser by common carrier, contract carrier, or US Mail; The invoice clearly lists delivery, shipping, freight, or postage as a separate charge; and The charge is not higher than the actual cost for delivery. 21
Quarterly Tax Returns Use Tax Examples Untaxed purchases from out of state vendors Internet retailer Amazon receipt Mail order catalog 22
Quarterly Tax Returns Use Tax Examples (cont.) Items withdrawn from resale inventory for use Inventory items purchased with a resale certificate without payment of tax Items withdrawn from inventory for use other than resale (give away) Use Tax Due on Cost 23
SAN DIEGO UNIFIED SCHOOL DISTRICT QUARTERLY SALES TAX REPORT SCHOOL ____________________________ QUARTER ENDING 1. GROSS ASB SALES (Taxable): 2. $ LESS NET SALES: (Line 2 Divided by 1.08) 3. $ 0.00 SALES TAX LIABILITY: (Line 3 x .08): 4. $ 0.00 ) LESS TAX PAID PURCHASE CREDIT: (See Below) 5. $( CHECK AMOUNT TO BE REMITTED TO DISTRICT: 6. $ 0.00 ASB CHECK NO. CHECK DATE Attach ASB check made payable to: "SAN DIEGO UNIFIED SCHOOL DISTRICT" DEADLINE: This report must be in the Financial Accounting office by the 10th of each month following the end of the quarter (EVEN IF NO SALES HAVE BEEN MADE FOR THE QUARTER). Please send report and ASB check to: The Eugene Brucker Education Center, Financial Accounting, Room 3244, ATTN: Rose Deguzman Any questions, please call Anna Day at (619) 725-7590. Signature ______________________________________ FINANCIAL CLERK/SECRETARY Date ________________________________________ *VERIFICATION OF TAX PAID PURCHASES* This section is used to take a Tax Paid Purchase (TPP) credit (credit for sales tax paid on items purchased for use but subsequently sold prior to using the items.) This credit will prevent duplicate payment of taxes. The principal's signature is not necessary if the amount reported below is zero. Sales tax paid to vendors on items resold $_________________________ (Enter amount on Line 5, above) I hereby certify that items (which were purchased and sales tax was paid) have been sold this quarter. 24 PRINCIPAL'S SIGNATURE (This signature is necessary only if a TPP Credit is taken.)
SAN DIEGO UNIFIED SCHOOL DISTRICT QUARTERLY USE TAX REPORT USE TAX REPORT ASB ASB 1. SCHOOL ____________________________ QUARTER ENDING 2. AMOUNT OF ASB PURCHASES * APPLICABLE PERCENTAGE RATE TOTAL USE TAX X = A. X 0.0775 = $ 0.00 B. X 0.08 = $ 0.00 C. X 0.0875 = $ 0.00 D. X = $ 3. TOTAL ASB USE TAX LIABILITY THIS QUARTER ASB CHECK AMOUNT TO BE REMITTED TO DISTRICT: $ 0.00 ** ASB CHECK NO.** CHECK DATE *Please break up ASB purchases by % rates. (For example, on Line 2A, total all purchases where no tax was paid to vendor and multiply by .0775. This is the total use tax due at 7.75%. Use Line 2B for items subject to use tax of 8.00% or Line 2C for items subject to use tax of 8.75%.) Use line 2D for purchases where partial tax was paid to the vendor. ** Attach ASB check made payable to: "SAN DIEGO UNIFIED SCHOOL DISTRICT" DEADLINE: This report must be in the Financial Accounting office by the 10th of each month following the end of the quarter (EVEN IF NO PURCHASES WERE MADE THIS QUARTER). Please send report and ASB check to: The Eugene Brucker Education Center, Financial Accounting, Room 3244, ATTN: Rose Deguzman. Any questions, please call Anna Day at (619) 725-7590. Signature ______________________________________ FINANCIAL CLERK/SECRETARY 25 Date ___________________________________________
Bank Reconciliation Process of matching the balances of cash account in accounting records (QuickBooks) to the corresponding information on a bank statement. Goal of this process is to ascertain the differences between the two and to book changes in QuickBooks as appropriate. Should be completed at regular intervals (by the 10th of the following month) to ensure records are correct. Unlikely that the ending cash balance in QuickBooks will be identical to the ending cash balance per the bank statement due to payments and deposits in transit. 26
Bank Reconciliation QuickBooks guide How to Reconcile the Bank Account bank reconciliation\How to Reconcile the Bank Account.doc 27
Monthly Financials Secondary schools prepare Reconciliation report Trial balance Balance sheet Profit and loss report Elementary schools prepare Reconciliation report Trial balance 28
Monthly Financials Reports signed by principal Reports shared with ASB advisors and student representatives. Keep on file with Student Body EGRY receipts, sub-receipts , or POS report Bank deposit slip Journal vouchers Fundraising request forms ASB minutes 29
Monthly Financials QuickBooks guides and forms How to Find and Use Report monthly financials\How to Find and Use Reports.doc ASB Reconciliation Check-off List monthly financials\ASB Recon Check Off List 051216 Final.docx 30
Questions? 31
