042-PGB-0519_Attachment_2_-_Internal_Accounts_Manual.pdf

INTERNAL ACCOUNTS MANUAL

FOR

STUDENT ACTIVITY FUNDS

TABLE OF CONTENTS

PAGE NUMBERS

I. Foreword

II. Policy Statement

III. Table of Contents - General Policies ....................................................................................... 4 - 5 Accounting Procedures ............................................................................ 5 - 6

IV. General Policies ....................................................................................... 7 - 27

V. Accounting Procedures ............................................................................ 28 - 59

VI. Appendix A - State Board of Education Rules - Excerpts....................... 60 - 61

X. Appendix C - Administrative Procedures for Handling Shortages in School Funds .......................................... 63 - 64

XI. Appendix D - Guidelines & Procedures for Fund Raising Activities/Charitable Drives School Board Policy 6Gx53-8.004 ............................. 65 - 72

EFFECTIVE DATE JULY 1, 2002

Adopted by School Board on January 28, 2003

Revision approved by the Board: October 28, 2014

FOREWORD

The history of Internal Funds in the public schools of this state and district is not recorded in any central volume which can be repeated here for the use of those who have not experienced some of the perplexing problems that educators had for many years in supervision and management of student activity funds. In the beginning, the problem was fairly simple, since activities were relatively few in number and the finance problems negligible. As the schools of the district and state have grown, there has been a gradual development of concepts concerning how these activities should be financed and how they should be administered. Through evolution, trial and error, experimentation and observation, several systems have been built up that were in agreement with generally accepted criteria.

In view of the large sums received and expended for student activities, the demand for their economical, safe, and efficient management is only natural. In 1947, a Citizens' Committee recommended the adoption of an adequate system of internal accounting for the schools of Florida.

Up to this time the experience of those who had been successful with results of previous experimentations was not available to all educators who have had responsibility for administering student activity funds. The first manual of State Board of Education regulations and an approved system of records was published in 1948. This manual was a great stride forward. However, many phases of internal accounting were dealt with only in a general way, and in many instances tended to confuse rather than help the educator with the administration of student activity funds.

In 1957, the Association of School Business Officials of the United States and Canada published a Manual of Accounting Principles and Procedures for Student Activity Funds from which some of the above thoughts and following concepts have been extracted. On August 12, 1958, the State Superintendent of Public Education, by authority of Sections 236.02 (1) and 237.02 (1), (2), (3), and

(4) adopted a STATE BOARD REGULATION (now called "rules") relating to INTERNAL FUNDS. These statutes and regulations in their most recent wording, are reprinted in this publication for reference purposes.

Public agencies derive their existence from the expression of the people through their legislative representation, and through legislative action are delegated an area of responsibility in which there is no inherent or implied power to exceed the limits of these assigned responsibilities. In order to succeed in the fulfillment of their responsibilities, the educational managers must understand and accept the basic concept that they possess only the power and authority which is delegated to them by the agency which is empowered to do so by law.

In April 1972, the accounting for Student Activity funds in the Polk County School District was centralized and a manual was prepared for use in administering the funds on the new centralized basis. This manual represents an update of the earlier manual and encompasses changes needed to maintain conformance with Florida Statues, State Board of Education Rules, and School Board Policies.

POLICY STATEMENT

The policies and procedures set forth in this Internal Accounts Manual govern the administration of funds generated internally from student activities as opposed to tax funds which come to the School System from external sources. These internal accounts are referred to interchangeably in this manual as Internal Accounts/Internal Funds, Students Activity Funds, School Funds and Organization Funds. They have been devised not only to bring about uniform procedures of accounting and safeguarding Internal Funds, but also to assist all employees of the Polk County schools in carrying out their responsibilities in the administration of student activity accounts. A thorough knowledge and understanding of the accepted procedures will result in economy of time and effort by each individual concerned. Confusion and uncertainty is the greatest contributor to the waste of energy expended in any organization. The information supplied in this manual should lessen the problems currently experienced by those charged with the responsibility of internal accounting, and should also remove them from the position of defending their actions in the face of any public criticism.

Student body organizations in public schools are governed by the same State Statutes and State Department of Education Administrative Rules under which the School Board of Polk County operates. In general, student body organizations therefore inherit only those rights and privileges which the Board has authority to delegate to them. It is apparent then that since the Board is a governing body, the administrative responsibilities must be delegated to those in a position to fulfill them.

The Superintendent and his staff have the responsibility and authority to implement all policies and procedures pertaining to the supervision and administration of the student activity funds in the schools of Polk County.

Principals have authority and responsibility for the conduct of student financial activities in accordance with the policies, rules, and procedures herein set forth and as amended from time to time. Any matters which are not specifically outlined herein should be referred to the Superintendent for consideration and referral to the School Board if necessary.

The basic principles clearly spelled out in Section 6A-1.085 of the State Board Administration Rules relating to Internal Funds and the statement that "MONIES COLLECTED AND EXPENDED

WITHIN A SCHOOL SHALL BE USED FOR FINANCING THE NORMAL PROGRAM OF

STUDENT ACTIVITIES NOT OTHERWISE FINANCED, FOR PROVIDING NECESSARY

AND PROPER SERVICES AND MATERIALS FOR SCHOOL ACTIVITIES AND FOR OTHER

PURPOSES CONSISTENT WITH THE SCHOOL PROGRAM AS ESTABLISHED AND

APPROVED BY THE SCHOOL BOARD"...cannot be over-emphasized as the guiding concept of the student activity program.

THE SCHOOL BOARD OF POLK COUNTY, FLORIDA

TABLE OF CONTENTS

SCHOOL ACTIVITY FUNDS

GENERAL POLICIES

PAGE

1.001 General Use and Administration of Student Activity Funds

1.003 Gifts to Schools

1.004 Classification of Accounts

1.005 Losses of School Funds

1.006 Fidelity Bonds

1.007 Depositories for Internal Funds

1.008 Budgets

1.009 Cash Collections and Deposits

1.010 Cooperative Activities

1.011 Outside Organization Funds

1.012 Property and Equipment - Alterations

1.013 Contracts

1.014 Insurance

1.015 Notary Public Commissions

1.016 Athletic Officials - Payments

1.017 Fees

1.018 Loans and Accommodations from Student Activity Funds

1.019 Audits

1.023 Financial Statements

1.024 Destruction of Records

1.025 Trust Accounts

1.026 Prohibited Expenditures

1.027 Prior Approval of Expenditures

1.028 Gifts, Donations and Awards to Pupils

1.029 Welfare and Family Relief Expenditures and Donations from Student

Activity Funds

1.030 Hospitality and Honorariums

1.031 Investments

TABLE OF CONTENTS

SCHOOL ACTIVITY FUNDS

GENERAL POLICIES

PAGE

1.032 Flower and Gift Collections

1.034 Sales Tax

1.035 Record-Keeping Requirements

1.036 Approving Authority of General Student Body Activities

1.037 Bid Requirements and Purchasing Procedures

1.038 Tangible Personal Property

1.039 Purchase and/or Rental of Class Rings, Graduation

Announcements, Yearbooks, and Caps and Gowns

1.040 Scholarships

1.041 Commission and Fund Raising Activity Reports

1.050 School Safe…………………………………………………………………………... 26

1.061 Field Trips

ACCOUNTING PROCEDURES

1.100 Accounting Reports and Record-Keeping Requirements

1.110 Chart-of-Accounts – General Classification

1.120 Procedures For Recording Receipts

1.121 Report of Monies Collected

1.122 Official Receipt

1.123 Admission Tickets

1.124 Report of Tickets Sold

1.125 Deposit Report

1.150 Procedures for Making Expenditures

1.151 Request for Services, Equipment or Supplies

1.152 Internal Accounts Requisition

1.153 Internal Accounts Check Requisition-Transfer

1.154 Credit Purchases for Which Requisition-Purchase Orders Are Not Required

1.155 Credit Purchases and Contracts of $100.00 or More and All Mail Order

Purchases Regardless of Cost

1.156 Purchases from Petty Cash

1.157 Payments to Individuals for Services

1.158 Change Funds

TABLE OF CONTENTS

SCHOOL ACTIVITY FUNDS

ACCOUNTING PROCEDURES – Con’t

PAGE

1.159 Cash or Check Advances

1.160 Fee Schedule – Insufficient Fund Checks

1.161 Write-Off Uncollectible Checks

1.180 Miscellaneous

1.181 Annual Forms/Ticket Supply Inventory Form

1.182 Annual Beef Cattle, Swine, and Dairy Cattle Inventory Form

1.183 Annual School Store or Supplies for Resale Inventory Form

1.184 Parties Requesting an Official Receipt for Funds Which Have Already Been

Reflected On A Report of Monies Collected

1.185 Preparation of One Check-Requisition to Make Individual Payments for

Services by Individuals

1.187 Library Fines

1.188 Transfers of Funds

1.190 Season Ticket Sales

1.191 Out-of-County Travel for School Board Employees Paid By Student Activity

Funds

1.192 Out-of-County Travel Reimbursement Guidelines

1.193 In-County Travel Reimbursement Guidelines

1.194 Procedures for Collecting and Depositing Fees For Summer Enrichment Band and Computer Classes

1.197 Florida High School Activities Association By-Laws

1.198 Services Rendered

Appendix A - State Board of Education Rules - Excerpts Appendix B - Supplies & Equipment Criteria Appendix C- Administrative Procedures for Handling Shortages in School Funds Appendix D- Guidelines & Procedures for Fund Raising Activities/Charitable Drives

GENERAL POLICIES

1.001 GENERAL USE AND ADMINISTRATION OF STUDENT ACTIVITY FUNDS

(1) The principal shall be responsible for the student activity funds of his school, and these funds shall be used to finance a program augmenting, not supplanting, the educational activities provided by the District School Board. The management of student activity funds shall be in accordance with sound business practices and accounting procedures in the same manner as school budgeted funds. The director of a designated area vocational technical center shall assume the duties and responsibilities assigned to the position of principal by these policies.

(2) All fund-raising projects and activities by the school, any group within, connected with, or in the name of the school, are to contribute to the educational experience of pupils and shall not be in conflict with the overall instructional program administered by the Superintendent and his appointed staff.

(3) Funds derived from the student body as a whole shall be expended only for the benefit of the student body as a whole, or a major part thereof.

(4) Student activity funds shall insofar as possible be expended in such a way as to benefit those pupils currently in school who have contributed to the accumulation of such funds.

(5) Student body representation is an important factor in the democratic management of funds raised by the student body and expended for its benefit. No organizational funds shall be expended without written consent of the officers of the student organization.

(a) School principals and sponsors of student organizations will not divert earnings from student activities for purposes that would benefit only a select group.

(b) Principals will be responsible for and have authority to determine the proper division of profits from joint participation in fund-raising activities.

(6) Principals will have authority to restrict the accumulation of funds in any one account to the amount needed to carry out the activity for which the account was created.

(7) All collections received by any club or in-school organization must be deposited in the school internal account.

(8) All funds handled by school board employees during normal working hours shall be included in and become part of the internal funds of the school.

(9) All organizations, connected with or operating in the name of the school, which obtain moneys from the public shall be accountable to the School Board. Only organizations that have a slate of elected officers may operate outside bank accounts and no School Board employee may be a signatory on a checking account connected to his school. SEE School Board Policy 9210 & 9211

(11) An annual financial report for each school year, reflecting beginning fund balances, receipts, expenditures, and ending fund balances, shall be filed with the Director of Internal Audit Services by all organizations with outside bank accounts by August 1 of each year.

(12) All organizations with outside bank accounts are required to file a monthly financial report with the school’s principal. This report should also include a detailed transaction listing for the month.

(13) The Department of Education publication, Financial and Program Cost Accounting and Reporting for Florida Schools (Red Book), Chapter 8, School Internal Funds, establishes policy and rules for all Internal Accounts Activity, effective July 1, 2001.

a. This publication shall be considered a part of the Internal Accounts Manual. Any policy or accounting procedure added or amended in this publication will be considered as policy changes. Updating of the Internal Accounts Manual related policy will follow, if applicable.

(14) All accounts should be solvent at the end of each school year. Each sponsor shall see that all funds are collected by the end of the school year for events held during the school year and for activities scheduled during the summer. In no case shall an account have a deficit unencumbered balance at the end of the school year.

1.003 GIFTS TO SCHOOLS

Link School Board Policy 7230

1.004 CLASSIFICATION OF ACCOUNTS

(1) The number of student activity accounts will be held to the minimum necessary to reflect the financial transactions of active organizations and shall be maintained in accordance with the classification of accounts provided in Policy 1.110, Chart of Accounts.

1.005 LOSSES OF SCHOOL FUNDS

(1) All losses of school funds must be reported to the District Office on form FD-1-- Report of Break-ins, Vandalism, Theft, Malicious Mischief and Other Losses. (A copy of this form is in the back of this manual for your reference.) Losses occurring due to gross negligence, improper accounting, or violation of any of the policies contained herein, will be reported to the Director of Internal Audit Services, who will proceed in accordance with Administrative Procedures adopted by the School Board on 7/08/86 (Appendix C).

1.006 BONDing

(1) Any school employee who is responsible for internal funds will be provided by the District School Board in an amount to be determined by the School Board. See School Board Policy 8740

1.007 DEPOSITORIES FOR INTERNAL FUNDS

(1) Depositories in which internal funds are kept must be approved by the School Board.

Banks will be required to furnish the same type of security for deposits as is required for other District School Board funds.

1.008 BUDGETS

(1) The Athletic Department of each school will submit a budget to the District Office in May of each year in a form prescribed by the Superintendent and his staff.

(2) All school organizations (classes, clubs, departments, etc.) should operate within a budget formulated by organization members and the sponsor. A copy of all such budgets shall be kept on file in the Principal's office.

1.009 CASH COLLECTIONS AND DEPOSITS

(1) All money collected from any source must be substantiated by prenumbered receipts, Reports of Monies Collected, pre-numbered tickets, report of tickets sold or other auditable records and must be cleared through the school internal accounts. In all cases where tickets are used, ticket reports and unsold tickets must be available for audit.

(2) Insofar as is practicable, all money should be collected in the school office.

Collections made outside of the school office, must be turned in to the school office daily. To enhance internal controls, all mail received in the office must be opened by a staff member other than the person who prepares deposits.

(3) All money collected should be properly safeguarded in the school safe until it is picked up by the armored car.

(4) All money collected must be deposited intact in the bank as frequently as feasible and as indicated by sound business practices. IN ANY EVENT, FUNDS COLLECTED MUST BE DEPOSITED ONCE A WEEK. All deposits must equal the total amount of money taken in and recorded on receipts for the period covered by the deposit.

Bank deposit slips shall be made in the number of copies necessary to meet the District Office Internal Accounting Department procedures.

(5) All checks deposited in the designated bank account shall be endorsed showing a restrictive endorsement - FOR DEPOSIT ONLY, THE SCHOOL BOARD OF POLK COUNTY, FUND NAME, SCHOOL NAME, ACCOUNT NUMBER. The District Office shall be immediately notified of any errors in deposits and shall be furnished whatever documents may be required to record the necessary changes.

(6) All source documents shall be pre-numbered and a perpetual inventory kept on beginning and ending numbers of all tickets purchased and issued to ticket sellers.

1.010 COOPERATIVE ACTIVITIES

(1) A cooperative activity is one in which the school officially participates with an ongoing group, such as the PTA or various Booster Clubs through planning, staging, conducting, or attending school-related activities. Such activities may be held on or off the school grounds and will usually take the form of money-raising events such as carnivals, paid entertainments, or food sales.

(2) Such activities must be directly beneficial to students and procedures must be established to provide proper accounting for funds and to insure compliance with internal account policies contained herein.

1.011 OUTSIDE ORGANIZATION FUNDS

(1) Certain activities which concern the school or which take place on school premises do not involve the student body directly but may involve the handling of funds through school accounts.

(2) Subject to the approval of the principal, funds generated by P.T.A.s/P.T.O.s, Booster Organizations, Employee Groups and other school-support organizations operating in the name of the school may be accounted for in internal accounts.

(3) When P.T.A.s/P.T.O.s, Booster Organizations, Employee Groups and other school-support organizations operating in the name of the school utilize internal accounts, the principal must require that the organization handle its finances in accordance with Internal Accounts policy. However, the use of the Request for Services, Equipment, and Supplies for the disbursement of funds is not required and may be waived by the principal for school-support organizations. If a school or student organization is participating with a school-support organization in a JOINTLY-SPONSORED ACTIVITY, the funds shall be processed through internal accounts, and the share due to the support organization shall be paid to the organization from internal accounts.

(4) All deposits must equal the total amount of money taken in and recorded on receipts for that day. If deposits are not made daily, the deposit must equal the total of all money collected and recorded on receipts from the date of the previous deposit.

1.012 PROPERTY AND EQUIPMENT - ALTERATIONS

(1) In the event it becomes necessary, either by the student organization or a contracting concessionare, to change, alter or attach permanent fixtures to school property, or utilize more than the ordinary amount of utilities, approval must be obtained from the District School Facilities office.

1.013 CONTRACTS

(1) Within the scope of the School Board's authority and responsibility to write policies on Internal Accounts, authority shall be delegated to school principals to enter into contractual agreements as follows:

a. athletic events regarding division of gate receipts with participating schools and bands,

b. school pictures,

c. printing of newspapers and other publications,

d. school annuals or yearbooks,

f. purchase of class jewelry,

g. graduation invitations,

h. caps and gowns and

i. other similar contracts relating to Internal Account Activity.

(2) These contracts are generally related to revenue-producing events and in most cases provide a profit to the School Organization sponsoring the contracted activity.

(3) Contracts which (a) are not related to extra-curricular student activities, (b) are to be entered into in the name of the School Board of Polk County, or (c) involve purchases subject to bid requirements as specified in Policy 1.037, must have prior School Board approval.

(4) For any contracts of a proprietary nature with outside organizations involving the public on school grounds, evidence of appropriate insurance coverage in amounts provided by State statutes shall be required. (Examples of this type contract would be donkey basketball and carnivals). Contact Risk Management

1.014 INSURANCE

1) LIABILITY

School sponsored educational programs are covered by the School Board's liability insurance policy. However, in order for activities of student organizations to be considered school sponsored and educational in nature, the following criteria must be met:

a. The activity must beapproved by the school principal and must be conducted under the principal’s supervision.

b. If the activity is a fund raising activity, the funds raised must be for the sole benefit of the school program.

c. Finally, the sponsorship of any activity by a school organization for the purpose of circumventing the School Board’s insurance requirements is prohibited.

1.015 NOTARY PUBLIC COMMISSIONS

(1) Where it is deemed necessary to have a notary public in the areas or high school offices, the cost of such commission may be paid from budgeted funds or the School's Internal Account "General" Account, if needed for extra curricular activities.

1.016 ATHLETIC OFFICIALS - PAYMENTS

(1) Payments for officials for athletic events shall be made in accordance with Internal Account Policy 1.157(1)e.

1.017 FEES

See School Board Policy 6152

1.018 LOANS AND ACCOMMODATIONS FROM STUDENT ACTIVITY FUNDS

(1) Student activity funds shall not be used for any purpose which represents an accommodation or loan to any employee, faculty member, or student. Checks may not be cashed for anyone nor may checks be accepted in excess of amounts due for the purpose of returning cash to the payor, except that area career centers may cash checks and make loans as necessary to administer student grant and loan programs funded by Federal, State, or local sources.

1.019 AUDITS

(1) The School Board shall “Provide for an annual audit of internal funds by a person certified by the state board of accountancy as a certified public accountant, or qualified internal auditing staff employed by the board. The auditor shall submit a signed, written report to the school board covering internal funds which shall include any notations of any failure to comply with requirements of Florida Statutes, state board of education regulations and policies of the school board, and commentary as to financial management and irregularities. Such audit shall be presented to the school board while in session and filed as a part of the public record. 6A-1.087

1.023 FINANCIAL STATEMENTS

(1) Sponsors and treasures of an activity should review financial statements of income and expenditures and account balances for any discrepancy with the organization records.Discrepancies should be reported immediately to the principal who shall report these differences to the District Office Internal Accounting Department.

1.024 DESTRUCTION OF RECORDS

(1) Official Student Activity fund records are maintained by the District Office.

Therefore, copies of these records retained at the school level may generally be destroyed after five years..

1.025 TRUST ACCOUNTS

(1) Funds collected for a specific, restricted purpose shall be accounted for in a trust account. At no time may a trust account be overdrawn, nor may trust funds be expended for any purposes other than that for which the funds were collected. Trust accounts may be established when needed by contacting the District Office Internal Accounting Department. Unused trust funds shall be returned to the person(s) from whom collected, if possible; otherwise, the principal may transfer unused funds to other appropriate accounts at his/her discretion.

1.026 PROHIBITED EXPENDITURES

(1) IpPrincipals may approve expenditures within the scope of the basic principles outlined herein EXCEPT for the following WHICH ARE PROHIBITED:

(2) Equipment, supplies, forms and postage for curricular or classroom use for which budgeted funds are available. This does not include expenditures by school organizations which use such equipment, supplies, forms and postage in the conduct of their student activities.

(3) Repair or maintenance of School Board equipment for which budgeted funds are available, except that equipment used in the Athletic program or purchased and used by an organization to carry out its activities.

(4)

(4) Membership in and contributions to any out of school organizations UNLESS the student organization is also a service organization (Lions-Kiwanis, Civic, Rotary, Fellowship of Christian Athletics). Student-service organizations may elect to make contributions, subject to the approval of the principal.

(5) Custodial supplies and equipment for which budgeted funds are available.

(6) Equipment, supplies and services for rooms and areas not used primarily for student body activities, unless spent from organizational funds which were voted for this purpose by the members of the organization.

78) Contributions to fund raising drives from Internal Accounts "General" fund.

(8) Gift card – except for student incentives.

(9) Internal Accounts are not to be used to fund school related organizations with outside bank accounts. i.e. PTO/PT and Booster Clubs.

1.027 PRIOR APPROVAL OF EXPENDITURES

(1) Where expenditures require prior School Board or District Office authorization, schools should anticipate needs far enough in advance to permit processing and proper clearance of written authorization.

(2) Expenditures may not be made until authorization has been received.

(3) No student organization shall be held responsible for an expenditure made by a pupil or teacher or by any other employee who has not first received an approved Request for Service, Equipment and Supplies.

(4) Any unusual expenditures not covered by provisions herein should be referred to the Superintendent for consideration and possible School Board approval.

1.028 GIFTS, DONATIONS AND AWARDS TO PUPILS

(1) A great variety of practices in recognizing outstanding pupils have arisen and although uniformity of practice is not necessarily desirable, the basic principles of student finance are applicable to the financing of such awards. As set forth herein, student activity money may be spent for those things which "...promote the general welfare, education and morale of the pupils as a whole...". Strictly interpreted this would mean that only those awards which are in recognition of some kind of service to the student body could be made a matter of student activity expense and any recognition of individual achievement as such could not involve expense to the student body. According to the more liberal interpretation, individual achievement may be of such nature as to bring honor and recognition to the school, and in a sense, be a service to the entire student body. Expenditures for such expenses for recognition are authorized.

1.029 WELFARE AND FAMILY RELIEF EXPENDITURES AND DONATIONS FROM

STUDENT ACTIVITY FUNDS

(1) Welfare expenditures from student activity funds may be made only for those items which directly help members of the student body carry on their work in the school.

Student activity funds or donations collected may be expended for family relief when voted by the membership of the organization from whose funds such relief or donations will be paid. Where funds are donated by non-school civic or charity organizations to take care of welfare cases, these funds shall be credited to a "Welfare" designated trust account. Funds available in a "Welfare" trust account may be spent for welfare cases at the discretion of the principal.

1.030 HOSPITALITY AND HONORARIUMS

(1) Hospitality is a courtesy extended to those who have performed a service for the student body or organization. Hospitality should not be construed as courtesy meals to School Board employees at the school or from administrative offices, or to representatives from other schools who are visiting in line of duty; nor should they be extended to community groups or individuals who are not performing a service for the student body.

(2) Meals for representatives on official business for the student body may be construed as a proper expenditure of student activity funds chargeable to the appropriate student activity account.

(3) An honorarium for outstanding service to a student organization is permitted but shall not exceed $200.00 per person unless approved by the School Board and only one such recognition may be made per year to an individual by a student organization.

1.031 INVESTMENTS

(1) School Student Activity Funds shall be invested from the District Office in the same manner as other public funds. See School Board Policy 6144..

1.032 FLOWER AND GIFT COLLECTIONS

(1) If the teachers have a Flower and Gift Faculty Fund and each member is assessed a fixed amount to be held in reserve to meet such needs as flowers and gifts for faculty members or pupils, money so collected will be deposited in and disbursed from the school internal accounts.

(2) Student organizations may make a donation to or purchase flowers from their funds to a family, teacher or student as a result of a death, casualty or hospital confinement.

1.034 SALES TAX

(1) The general rule for the payment of sales tax is that all expenditures from Internal

Accounts are exempt from sales tax which are made for customary instructional activities and which do not represent expenditures for items for resale to individuals, including the general public. Purchases made by school organizations for goods or services related to individual needs within an organization are not exempt from sales tax.

(2) When minor expenditures are made from personal funds, individuals and sponsors requesting reimbursement will NOT be reimbursed for the sales tax. Reimbursements of this nature are limited to $100.00 or less.

(3) Any questions regarding sales tax which are not covered in this manual should be cleared with the District Office Internal Accounting Department prior to entering into a contract, agreement or understanding with any person where a charge will be made to the public.

1.035 RECORD-KEEPING REQUIREMENTS

(1) Although formal accounting records are not required at the school level, as a minimum each school should maintain orderly files of all documents prepared in receiving and expending Student Activity Funds.

(2) The controlling financial accounts of all schools will be kept in the District Office and will be administered by the District Office Internal Accounting Department.

(2) Uniform accounting forms approved by the School Board will be used and will be supplied through the District Office Internal Accounting Department.

1.036 APPROVING AUTHORITY OF GENERAL STUDENT BODY ACTIVITIES

(1) Approval may be granted by principals to student organizations within a school to carry out any functions which will broaden the educational or social activity of the group, provided those activities are not in conflict with any existing School Board and State Board policies, rules or regulations, and are within the following categories:

(2) GENERAL ACCOUNT - Any income earned from activities conducted by the school or organization within the school supported by the general student body will be classified as "General" account income. Funds accrued in the General account may be expended for any purpose which would add to the educational experience in either the curricular or extra-curricular activities of the major portion of the student body in that school. These expenditures may be for but not limited to:

a. Equipment for school wide use

b. Equipment for the library or cafeteria dining area

c. Beautification of grounds

d. Entertainment programs for entire student body

e. Field trips by major portion of student body

(3) ATHLETICS - If not in conflict with other provisions of this manual, all matters concerning athletics will be decided on by the principal, in keeping with the rules and regulations of the Florida High School Activities Association. The following are approved sources of income from athletics:

a. Sale of tickets.

b. Game guarantees in accordance with mutual agreements.

c. Television and radio rights.

d. Program sales.

e. Concession sales at athletic events (popcorn, candy, soft drinks, etc.)

f. Donations.

g. Special fund raising projects.

h. Playoffs and tournaments.

(4) CONCESSIONS - Concession sales at all student activities operated by the school or student body organizations within the school approved by the principal or such outside agency as may be authorized by the School Board are permitted. The profits from concession sales will be credited to those organizations of the school which the principal designates, except as restricted by these policies for faculty organizations.

(5) PAID ENTERTAINMENTS - Paid entertainments are defined as those activities for student body and faculty personnel only, to which admission is charged. Where admission is charged to school entertainments, the charges should be fixed at amounts permitting the maximum number of pupils to attend. Also, certain admissions are subject to Florida sales tax.

a. Fund-raising activities for which students are charged an admission shall not be presented during school hours.

(6) PUBLICATIONS - These include school newspapers, yearbooks, and other publications sold to the general student body and faculty. The principal will review all contracts for school newspapers, yearbooks and other publications.

a. The Superintendent will prevent the execution of any contract which he or his staff determines is not in agreement with laws, regulations or School Board policy. The selling price of a student body publication shall be set at a point or provision made in the student body budget so that the maximum number of pupils may benefit from the publication.

(7) SCHOOL STORE - The operation of a school store will consist of the sale of merchandise that is needed by pupils to facilitate classroom instruction and to accommodate pupils. Merchandise that is needed by pupils to facilitate classroom instruction and to accommodate pupils may be sold in school stores where permission to operate such stores has been granted by the principal. School stores shall offer a minimum of competition to local merchants.

a. The school store shall be enclosed in an area and separate from other stored facilities. The principal and group or club managing the store should have the only keys. An excessive inventory should not be carried throughout the year and should be almost depleted at the end of the school year to avoid spoilage, deterioration of quality and as a safeguard against a large loss from theft.

Purchase of items from the district warehouse for resale will be permitted but the sales tax on such purchases must be transferred from the related store account to the districtwide sales tax account. The principal shall establish an approved list of merchandise for sale in the school store.

(8) VENDING MACHINES - Refer to School Board Policy 8540.

b. Sponsorship checks/commissions from vending machines may be deposited into Internal Accounts and allocated with no more than 15% to the Faculty Account and the rest to either Academic Incentives or the schools General Account.

c. One hundred percent (100%) of commissions from vending machines located in the teachers’ lounge that are not accessible by students may be deposited to the Faculty account.

(9) FUND RAISING BY CLASSES, CLUBS AND DEPARTMENTS - This includes all funds that are raised by any Class, Club or School Department, through dues, operation of concessions, dances, parties, carnivals, merchandise sales, or any other activity involving the school or one of its organizations, for which the money is to be spent at the direction of the class, club or department concerned and with the approval of the principal. Fund-raising activities involving the sale of foods, carbonated beverages, confections, bakery products, etc. to students are prohibited. Raffles and other activities of chance shall not be conducted for school-connected activities. A financial report shall be filed with the principal's office at the close of each fund-raising activity. Referto School Board policy 2430.

a. When any school organization or group is involved in a fund-raising activity or any function exposing the School Board to extraordinary liability, approval must be obtained in advance from the superintendent or designee.

(10) CHARITABLE FUND RAISING DRIVE BY THE STUDENT BODY - This includes all funds which are received in trust from fund raising drives conducted by the student body to benefit charitable organizations and remitted in the total amount to the charitable organization. (See School Board Rule 6Gx53-8.004)

(11) PROPERTY DEPOSITS - This category covers money received on locker keys, locks or similar returnable school property and is not refundable.

(12) INSTRUCTIONAL MATERIALS FEES - Except at the vocational schools in situations where money is not otherwise provided, fees to meet instructional needs of the pupils may be accepted from students who VOLUNTARILY OFFER FUNDS FOR THIS PURPOSE. Fees may be collected for such items only if a written notice is sent to the parents or guardian explaining specifically what the student will receive and the actual cost of the item(s). All such fees must be approved by the School Board prior to the start of each school year.

a. Fees at the vocational schools for various vocational trade classes are permitted.

Such fees must be approved by the School Board prior to the start of such classes.

(See Policy 1.017-Fees)

(13) INTERFUND TRANSFERS - Funds may be transferred from one account to another with the principal's approval provided the accounts from which they are transferred are: (See Policy 1.188 Transfer of Funds)

a. No longer operative.

b. The account is an enterprise account (such as school store) and the profits are transferred to "General" account or student organization designated to benefit from the operation of the school store.

c. At the request of the organization to whose account the funds were originally credited.

d. From the "General" account to any other school account where the funds are needed to complete a project which will benefit the major part of the student body.

e. As a "Loan" to another account if approved by the organization "loaning" the funds and the approval of the principal, all loans must be repaid by June 1 of each year and may not exceed one year unless approved by the Superintendent and his staff. This type of loan is usually a short-term loan to accommodate an organization until their funds are generated as planned for.

f. Any remaining balance in the account of a graduated class after graduation of that class, and after that class has had an opportunity to clear all debts and determine the disposition of the balance, shall be transferred to the General account or an account designated by the principal, following a reasonable time after the date of graduation. No graduating class fund shall be transferred out or reserved to fund future class reunions.

1.037 BID REQUIREMENTS AND PURCHASING PROCEDURES

(1) Use of student accounts for purchases by students or members of the school staff and faculty to take advantage of the student body purchasing privileges is prohibited.

(2) Purchases by any school, or organization within a school, shall not exceed the amount that may be reasonably expected to be available between July 1 and June 30 of each year. School employees shall not encumber any school activity account for an amount in excess of the unencumbered balance. The Superintendent of Schools will recommend to the Board action to be taken against school employees who violate this principle. (The only exception to this policy is for the encumbrance of a purchase order for the purchase of money-making project materials and school store supplies for resale.)

(3) Section 6A-1.091 of the State Board of Education Rules relating to Internal Fund purchases by schools and school organizations will be strictly adhered to.

PURCHASES FOR ITEMS NOT ON BID FOR WHICH THE EXTENDED COST

OF ANY LINE ITEM IS $2,000.00 OR MORE MUST BE REFERRED TO THE

PURCHASING DEPARTMENT FOR EVALUATION PRIOR TO THE

SUBMISSION OF A REQUISITION. Regardless of the cost, BIDS OR QUOTES will not be required on purchases made from:

a. Funds handled in trust for individuals as provided in SBE Regulations 6A-1.091.

b. Educational materials available from only one source of supply as provided in SBE Regulations 6A-1.012(7).

c. Contracts and requisitions for materials and services provided for in Policy 1.013 of this manual and if such contracts and requisitions are exempt from bid requirements under SBE reg. 6A-1.012(7).

d. Payments from Internal Accounts for contracted professional services (as opposed to purchases of materials or supplies).

e. Faculty Funds for any purpose.

f. Concession activities for food, beverages, and supplies for concessions at school sponsored activities and vending machine sales.

g. Special ventures for food and specialty items for resale under Special projects sponsored by school organizations.

h. Purchase of food items used in cooking for parties and banquets.

i. Purchase of meals from restaurants and hotels for parties, banquets and proms.

j. "Admissions" to any place of amusement, sport or recreation, or for the privilege of entering or staying in any place providing these services.

k. Funds held in trust that were donated by a PTA/PTO/Individual for a specified brand/trade name purchase.

(4) Internal Account Requisitions covering expenditures made in accordance with the bid provisions of this section shall be submitted in accordance with Accounting Procedures Policy 1.152 of this manual. Requisitions submitted to the Purchasing Department that appear to be splitting of requisitions to circumvent the bidding process will not be processed.

(5) School Board approval will be required only on expenditures in excess of bid limits set in State Board Rule 6A-1.012 or for which a waiver of bid requirements is requested.

(6) Athletic equipment meeting the standards set by the Varsity Athletic/PE Committee will be purchased on a bid basis through the Purchasing Department at the District office. Athletic directors will survey their anticipated needs on the fall and spring athletic surveys in order to include the bulk of their supplies and equipment needs.

Fill-in items, the cost of which is less than $300.00, may be purchased in accordance with the following provisions: Fill-in items are those pieces of uniform and playing equipment necessary to complete the team needs, which were not available or anticipated through central purchasing, as special sizes of shoes. Splitting invoices to purchase large numbers of the same item, making each order less than $300.00 each, is a violation of this principle. If an order includes several different items with each group of items costing less than $300.00 and not available from the same vendor, the equipment is considered "fill-in" even through the total order exceeds $300.00.

(Example: 10 pairs of shoes at $35.00 a pair is not fill-in equipment: 5 pairs of shoes at $35.00 a pair and 10 pairs of game pants at $15.00 a pair is fill-in if not available from the same vendor, even though the total order exceeds $300.00. Two separate orders of 5 pairs of shoes at $35.00 a pair within a short space of time is a split invoice and a violation of this principle.)

(7) Schools, clubs and organizations are not permitted to open revolving charge accounts or obtain credit cards to make purchases.

1.038 TANGIBLE PERSONAL PROPERTY

(1) All equipment or livestock purchased with Internal Account funds will become the property of the School Board and will be recorded on inventory records as prescribed by the Superintendent's Staff.

(2) Disposal of equipment or livestock purchased with Internal Account funds will be in accordance with School Board Rule 6Gx53-5.004.

1.039 PURCHASE AND/OR RENTAL OF CLASS RINGS, GRADUATION

ANNOUNCEMENTS, YEARBOOKS, AND CAPS AND GOWNS

(1) It should be recognized that each high school serves a different type of community.

Each school develops traditions and a personality of its own. In the matter of purchasing items for pupils with pupils' money, this individuality should be protected.

(2) Each individual school shall have the authority to select the vendor of its choice for such items as are enumerated in Florida State Board of Education Administrative Rule 6A-1.091 (e.g., class rings and jewelry, school annuals, cards, invitations, caps and gowns).

(3) All agreements for such items shall stipulate a privilege to cancel when, in the opinion of the principal, merchandise or service is not what it was represented to be.

(4) At the time an individual school enters into agreement with a vendor, the following provisions shall be complied with:

a. Principal's Responsibility: the school principal shall assume the responsibility of insuring that the purchases of such items are in the best interest of students with regard to price, quality, service, reliability and reputation of vendor and vendor's agent.

b. It shall be the responsibility of the principal to file a copy of each contract and/or purchase agreement which involves financial obligations with the Superintendent of Schools prior to the date the contract or purchase agreement is to be executed.

c. The principal shall not arbitrarily exclude any vendor from the opportunity of discussing his product or products, bearing in mind that the loss of valuable school time by either students or faculty members shall be kept to a minimum.

d. No profit or gratuity shall accrue to the school, or any school organization or any school personnel. The school is merely acting as an agent for the individual on a nonprofit basis.

e. Sales for Non-profit (profits to be retained by the vendor): Items sold for non-profit to the school shall be negotiated with vendors on a one-year basis, renewable by option of the principal and/or faculty member, and/or a faculty-student committee appointed by the principal. However, a two-year agreement may be made if it appears this would result in a price advantage to the purchasers by amortizing die costs over a large number of units. Insofar as possible, items to be sold for non-profit should be at a sales price within the paying ability of the majority of the students.

f. Negotiations with vendors shall be conducted by a faculty-student committee composed of student representatives from each grade level being affected by the purchase of the particular item or items being negotiated, and the class sponsor for each. In the selection of class rings it is suggested that the committee be composed of 7 or more members of the student body (3 members of the sophomore class and 4 members of the junior class) and the class sponsor.

g. The final decision on a vendor is the responsibility of the school principal. If his decision is different from the committee's selection, the committee has the right to appeal to the Superintendent.

h. Vendors of the items covered by the preamble of the policy who have expressed a desire to show their merchandise either in writing or by a visit to the school to see the principal, shall be told at what time of the school year that contract negotiations will take place so that they may have sufficient time to prepare their proposal.

i. All new agreements must be in writing and cover all agreements which are to be binding on each party (price for example) and subject to cancellation when service is poor or merchandise is inferior.

j. Only the bona fide vendor will be allowed to sell on school premises.

1.040 SCHOLARSHIPS

(1) In recognizing students who have excelled in academic endeavors or who merit financial aid, scholarships will be permitted if the following criteria are met.

a. The organization is a high academic organization such as the Honor Society.

b. The funds were donated to a scholarship trust account fund:

1. for a specifically named student;

2. for high academic students who need financial aid;

3. for student expenses in specified fields of endeavor who qualify for financial aid while still attending school.

1.041 COMMISSIONS AND FUND RAISING ACTIVITY REPORTS

Schools customarily contract with photographers to take individual and group pictures of pupils, and with publishers for sale of magazines and other periodicals from which commissions are earned.