Effective Financial Management Procedures for Local Schools

Local School Financial Management Presented by: Mrs. Quinette Bruno Chief School Financial Officer Dallas County School System April 24, 2025

Objectives Guidance & Proper Procedures

Refer to the Financial Procedures for Local Schools, as approved by the Alabama Department of Education in June 2010. These procedures address the financial management of local school funds and include guidance on field trips, school fees, academic incentives, school income, school related organizations, live work projects, fund raising and receipting school funds. Available for download on the State Department od Education s website.

https://www.alabamaachieves.org/wp- content/uploads/2021/07/Local-School-Financial- Procedures.pdf

FINANCIAL PROCEDURES FOR LOCAL SCHOOLS The position of Principal carries with it the full responsibility for all financial matters relating to the school. It is imperative that the Principal gives his or her personal attention to the collection, expending, documenting, recording, and overall supervision of everything relating to the financial affairs of the school. The Principal has the responsibility for collecting and disbursing all monies in a manner approved by the local board of education and in accordance with generally accepted accounting principles and procedures. Your purpose as a bookkeeper/secretary is very important when it comes enforcing internal controls at the local schools.

FINANCIAL PROCEDURES FOR LOCAL SCHOOLS The following are some general rules regarding the financial affairs of the schools. These rules, as well as the accompanying procedures and policies will be subject to audit. (1)School funds will be receipted and deposited in the school account on a timely basis. (2)Expenditures will be paid by check and supported by proper documentation. (3)Purchases will be approved by the Principal (with a signed purchase order when required) before the purchase is made. (4)Accounting records will be posted daily. (5)Bank statements will be reconciled monthly. (6)Monthly financial reports reflecting accurate balances and activities of the accounts of the school will be reviewed and approved by the principal. The Principal must be familiar with all local school financial policies so that he or she will not permit practices contrary to the policies. The Principal is directly responsible in the handling of monies received at the school. It is the ultimate responsibility of the Principal for any shortages resulting from the failure to follow, or to require others to follow, the financial procedures for the handling of school monies.

PROPER PROCEDURES RECEIPTING Receipts should be issued for ALL money received. Receipts should indicate if amounts are cash or check Teacher receipts/forms should not be pre-signed. Teacher receipts must contain an original signature of the person receiving the funds no signature stamps.

PROPER PROCEDURES RECEIPTING Voided receipts must be retained in the receipt book. Do not use correction fluid or erase mistakes. Secure funds received at all times. Teachers should never leave money in a classroom. A teacher should never take money home or off school grounds. Do not cash checks with funds received. This applies to athletic events as well!

DONATIONS All donations are considered to be public funds unless a donor specifies funds are to be used for a specific purpose. Donations should be receipted in same manner as any other school funds.

VENDING All monies derived from soda and snack vending machines located on school property are considered to be public money. The Principal should periodically review the concession profits or losses to determine if profit margin is reasonable or if any problems may exist.

CONCESSIONS Concessions include event concessions (sold at athletic events, plays, pageants, etc.) school concessions sold to students school supply stores sold to students Because all concessions involve cash, and neither cash receipts nor tickets are typically used to control the exchange of money, proper accounting for the sale products and income is essential.

Concessions Ideally, A Point-of-sale (POS) system would be used to account for the cash collected. The purchaser would receive a receipt, and the POS system would generate a record of sales. An inventory of items purchased, items sold by sales price, and items unsold should reconcile to the cash collected.

Concessions POS not available/cost effective in all instances. In those cases: Income from sales should be compared to costs associated with products sold to determine profits. Losses should not occur and should be thoroughly investigated if they do occur to determine reason for the loss and ensure not due to theft. Should be able to correlate mark-up percentage of products sold to profits. If mark-up percentages are significantly different than profit percentages, this should be investigated, as it may indicate theft.

PROPER PROCEDURES DEPOSITING Funds should be secured until deposited. Funds should be deposited daily or according to Board policy intact and in a timely manner. If deposit cannot be made before the bank closes, a locked night deposit bag should be used to secure funds in the bank s night depository.

PROPER PROCEDURES ATHLETIC EVENTS Pre-numbered tickets should be sold at all events where admission is charged. A report of ticket sales form (check-up form) must be issued for each individual selling tickets at the time the tickets are provided to them.

PROPER PROCEDURES ATHLETIC EVENTS The form (check-up sheet) should record the following information: Name of event Date of event Name or signature of person receiving tickets for sale Beginning and ending ticket numbers issued Beginning and ending ticket numbers not sold Signature of person receiving unsold tickets and cash collected. Reconciliation of collections based on ticket sales to actual cash returned. TIP! the form should be complete and accurate

PROPER PROCEDURES ATHLETIC EVENTS A Master Receipt should be issued to an individual for the cash collected from ticket sales. A separate Master Receipt should be issued for the change cash ensure coded correctly in accounting software not as a revenue/expense, should use the change cash code. All cash collected should be deposited intact. Do not use cash collected/change cash to cash any checks.

E-TICKETS More and more school systems are selling electronic tickets (i.e. GoFan) Think of where/how this might be occurring in your school Make sure the school s bank account is the recipient of such money Make sure the money is receipted into the accounting records.

GATE RECEIPTS/PARKING Gate Receipts and Parking Fees for parking on school property during athletic events are considered to be public funds. Funds collected are to deposited intact and recorded in the school s public accounts. If collected by Boosters, a reasonable percentage should be retained by the school if parking fees are collected on school grounds.

PROPER PROCEDURES FUNDRAISERS A form requesting authorization for a fundraising activity must be approved by the Principal prior to the start of the activity. Information should include: 1. Date of the request 2. Name of individual making the request. 3. Activity account that will receive proceeds. 4. Class, club or organization that will conduct the activity, if applicable. 5. Beginning and ending dates of fundraiser.

PROPER PROCEDURES FUNDRAISERS Description of fundraising activity to include: Name of company supplying items for sale. Description of items for sale. Estimated cost of items for sale. Sales price of items. Description and estimated cost of related expenses. Description of method of sales and collections. Estimated profit from fundraiser. Purpose of the fundraiser. STRONGLY CONSIDER PRE STRONGLY CONSIDER PRE- -SALES SALES

PROPER PROCEDURES FUNDRAISERS Approved fundraisers must comply with financial procedures for other school funds to include: All funds collected must be delivered to the school office for a master receipt. Do not cash checks from collections. Money collected from fundraisers must be deposited timely. Money should not be held by the teacher/sponsor until the fundraising project is complete. All fundraising expenses must be presented to the Principal for payment by check. School employees should not receive gifts or gratuity from the fundraising vendor (possible Ethics Law violation).

PROPER PROCEDURES FUNDRAISERS Within a reasonable time after completion of the fundraising activity, a form should be submitted to the Principal that documents the results of the fundraiser. All forms and records of the fundraising activities should be maintained for audit purposes.

THREE PS OF FUND RAISING Planning (for profit and accountability) Policy Appropriate Activity, Profit making venture and accountability Process Follows policy no deviations & obtain and maintain documentation IF YOU DON T DOCUMENT IT WAS NOT DONE!

DEFICIT BALANCES -NON- PUBLIC ACCOUNTS Deficit Balances in non-public activities/accounts are not allowed. The School can not loan money or extend credit to individuals per the State Constitution -Section 94, Constitution of Alabama 1901! The Principal/Bookkeeper should ensure money is available for a non- public expenditure prior to authorizing a Purchase Order.

CAPITAL ASSETS Notify the Board Central Office for any asset purchase which exceeds the Board s capitalization threshold typically $5,000. Also, would include a donated asset! When selling public assets, you MUST get fair market value for your assets. Is your discretion as to how to determine Fair Market Value FMV offering to public at some type of sale guarantees FMV.

UNALLOWABLE EXPENDITURES PUBLIC FUNDS Gift items for staff Flowers for staff and/or families T-Shirts for office staff Staff Holiday parties / Christmas gifts Christmas cards Donations to various organizations Dues to private clubs (Rotary, Kiwanis) Alcoholic beverages Scholarships for Students Meals for spouses Food items for teachers Coffee and cups for employees

FOOD PURCHASES Numerous questions arise surrounding the purchase of food items or refreshments from Public Funds. All-day Professional Training Meetings (provide agenda) YES Open Houses -YES After-school Staff Meetings -NO Staff meeting day before school starts/end of year NO Candy -NO

ALLOWABLE EXPENDITURES PUBLIC FUNDS Expenditures for pictures for school office. Expenditures for flower arrangement for school office. Athletic receipts can be expended for pregame meals for the athletic participants and coaches. (Principal and parents not included) Refreshments expended for a public open house at a school. Transportation to events related to a school sponsored activity. Meals for faculty and staff for a meeting that extended into lunch hour and food had to be provided for the meeting to continue (provide agenda).

If you have any questions: Were here to help! Dallas County School System