Rules and Procedures for Disbursements These are the rules and - - PowerPoint PPT Presentation

Rules and Procedures for Disbursements

These are the rules and procedures you must follow to ensure your school’s expenditures are appropriate and adequately documented.

Where do you find the rules and procedures?

• Redbook - Financial and Program Cost

Accounting and Reporting for Florida Schools

• Chapter 8 (this is state statute and a link to the

Redbook can be found on the Auditing Website under “Resource Links”.)

• School Board Policy (Policy Manual can be found on

the district website. Go to “About Us” and choose “District Bylaws and Policies”.)

• Manual of Internal Fund Accounting -

Expenditures are found in Chapter 6 (this is our

procedure manual and a link to the manual can be found on the Auditing Website under “Resource Links”.)

Two forms are used to document purchases

• Manual of Internal Fund Accounting, Chapter 6 states: “Since the

purchasing of goods and services results in the expenditure of school funds, two required forms are used to document the process: the purchase requisition and the purchase order. “

Expenditures must have prior approval

• Redbook, Chapter 8, Section III 3.2(a)

states: “A signed commitment from the principal or designee(s) must be on file before any purchase is made.”

• Redbook, Chapter 8, Section III 2.3 (d)

states: “…Disbursements shall be approved by the appropriate organization

• fficer, the sponsor, and the principal.”
• Manual of Internal Fund Accounting,

Chapter 11 states: “any school group that wishes to perform a community service in the form of a contribution must secure the permission of the appropriate Director of School Operations, as well as the Principal, prior to engaging in any fundraising activity.”

The Internal Purchase Requisition form (PCS Form 3-2902) is the first document prepared in the purchasing process. A properly completed purchase requisition should look like this:

The sponsor or teacher completing the Requisition must fill in the date on the form and also record the date that he/she signs the requisition. If club officer approval is required, that person should also date his/her signature. The principal or designee must also date his/her

• signature. Remember

Redbook… “A signed commitment from the principal or designee(s) must be on file before any purchase is made.”

The Requisition should clearly:

• Document the

Vendor Information

• Describe the

item/s to be purchased and the cost, either exact or estimated.

• Document the

account name and account number

The “Purpose of Purchase” MUST be completed.

• It must be

specific.

• The purpose of the

purchase must align with the intended use of the funds.

• When you receive

the requisition, compare the Purpose

• f

the Purchase to the funds that are to be used to verify that it is an appropriate use of the funds.

All funds receipted into your internal fund should be “supported” by documents which show how the funds are intended to be used.

• Adopt a Class Funds – Maintain a copy of the school’s adopt-a-class

solicitation form. That form should specifically state what the donation can be used for and give the parent/business a place where they can indicate how they want unused funds to be handled.

• Restricted Donations (6-2400.xx) – When you receive restricted

donations you should have documentation in writing from the donor specifically detailing how the money is to be spent. Example: For Teacher Appreciation to include food. Keep this documentation on file and attach a copy to the voucher packet.

• School Wide Fundraisers (6-2685.xx) – Maintain the Request For

Activity form for the fundraiser. This form documents the intended purpose for the profits of the fundraiser. Also, maintain the advertisement to the students/parents which tells them how

• the school will use the profits. This could be either a
• fundraiser flyer/brochure or possibly the school newsletter.

Appropriate use of funds in other accounts:

• General Administration (7-0350.00) – The General Administration

account is for expenditures pertaining to general office supplies.

• Un-Restricted Donations (7-0545.xx) – Unrestricted donations are

those donations that come to the school from various businesses or the general public, without a specific purpose. These funds must be spent for the general welfare of the student body; they are not intended for expenditures related to staff appreciation luncheons

• r any other personal expenses on staff.
• School Picture (7-0450.xx) – The school picture commission account

is for expenditures that benefit the general welfare of the student body; they are not intended for expenditures related to staff appreciation luncheons or any other personal expenses on staff.

• Vending (7-0550.86) – Vending commissions generated by

the teachers are receipted in this account and may be used for staff expenditures such as staff appreciation luncheons or staff recognition.

Did you know that the bid policy has changed?

• School Board Policy 6320 - PURCHASING AND BIDDING

When making purchases the following thresholds shall apply …

• A. $0.01 to $5,999.99: No minimum number of quotations required. The

Superintendent shall have the authority to initiate a purchase without further action required.

• B. $6,000.00 to $24,999.99: A minimum of three (3) written quotations must be
• requested. No minimum number of responses are required. E-mail shall qualify as a

written response.

• C. $25,000.00 to $49,999.99: A minimum of three (3) written quotations must be
• requested. Three (3) responses are required. E-mail shall qualify as a written
• response. Requires approval of Executive Director or above.
• D. $50,000.00 or more: A minimum of three (3) competitive

solicitations for sealed proposals shall be requested in accordance with F.A.C. 6A-1.012(7). A public bid opening shall be conducted on the date and time when bids are due. Board approval shall be required before a purchase order may be released unless the purchase qualifies as an emergency under F.A.C. 6A-1.012(12)(e).

Restricted Expenditures from Internal Funds Redbook, Chapter 8, Section III, 3.0 Purchasing

The following expenditures from internal funds are deemed inappropriate and shall not be made except from trust funds collected for a specifically identified purpose. (2) Curricular-related travel; professional, technical, or consultant services; or other items for which school board funds are available. However, revenue derived from vocational education production shops may be used for these purposes. (1) Equipment, supplies, forms, and postage for curricular or classroom use for which school board funds are available. However, revenue derived from vocational education production shops may be used for these purposes.

Restricted Expenditures from Internal Funds Redbook, Chapter 8, Section III, 3.0 Purchasing

The following expenditures from internal funds are deemed inappropriate and shall not be made except from trust funds collected for a specifically identified purpose. (3) Articles for the personal use of any student, employee, or

• ther person; except those items which are identifiable as

being in recognition of service or promotion of school activities and those items identified under Rule 6A-1.043, FAC, Promotion and Public Relations Expenditures. (4) Personal memberships or subscriptions.

Restricted Expenditures from Internal Funds Redbook, Chapter 8, Section III, 3.0 Purchasing

The following expenditures from internal funds are deemed inappropriate and shall not be made except from trust funds collected for a specifically identified purpose. (5) Salaries or other compensation for duties or assignments which are the responsibility of the school district. (7) Repairs and maintenance of school board equipment for which school board funds are available. However, revenue derived from vocational education production shops may be used for these purposes. (6) Loans, credit, or accommodation purchases for anyone.

After the requisition is approved by the principal or designee, a purchase

• rder is to be prepared in the Manatee

System

• Manual of Internal Fund Accounting, Chapter 6 states:

“The purchase order is the school’s official notification to the vendor that goods or services are being requested. Based upon a properly prepared and approved purchase requisition, the purchase order is to be printed and signed by the Principal or designated administrator. “

If

• The purchase order is

initiated AFTER the purchase requisition is approved by the principal and BEFORE a purchase is made.

• The Purchase Order

notifies the vendor that the items listed

• n the PO have been

approved for purchase….AND a PO encumbers the funds in the accounting system so that they will be available when the school is billed.

 A purchase order is not required for the following: (1.) Vending machine refills (2.) Travel reimbursement (3.) Refunds (4.) Emergency repairs (5.) Submitting funds to the district (Leases, tuition, gate receipts) For these types of expenditures …After your requisition is approved…You can create an invoice and pay from the invoice.

Worth Noting…

 For School to Pay purchases, the Internal Purchase Order is made to the PCSB and is to be created at the time of the purchase. (1.) The Manatee Purchase order should be created at the same time you enter the purchase into TERMS.

All voucher packets must have an

• riginal, itemized and approved

invoice or receipt.

• Manual of Internal Fund Accounting, Chapter 6 states:

Invoices should reflect the following: (1.) Vendor’s name and business location (2.) Date of purchase (3.) Detailed description of merchandise/services (4.) Quantity (5.) Unit price (6.) Total cost (7.) Purchase order number/invoice number (8.) Florida sales tax must be included on invoice by vendor when applicable. Upon receipt of goods, services or supplies, personnel will verify all items/services were received. If all is as ordered, then the invoice will be signed and dated by the person who receives the items thus authorizing payment. When payment is made: The invoice/receipt shall be stamped Paid …

Invoices

 The invoice must be an

• riginal itemized invoice.

 The invoice must be accurate. If not, a request to the vendor for an accurate invoice is required.  The invoice is to be signed and dated by the person who receives the items thus authorizing payment. This is what we call acknowledgement of receipt

• f goods.

 The invoice is to be stamped

• paid. Make sure the actual

invoice paid is stamped. Do not stamp the requisition or the purchase order.

 If the invoice is faxed, add the following statement

• n the invoice with

the Principal’s written approval signed and dated: “I certify this is the

• nly invoice received

and not a duplicate payment.”

Receipts

If a check is issued to a vendor and the staff member brings back a receipt :  The receipt must be an original itemized

• receipt. No copies of receipts are to be

accepted.  Once the receipt is returned to the bookkeeping office, an administrator must compare the receipt to the approved requisition and purchase order to verify that only the prior approved items were

• purchased. The administrator is to sign

the receipt to indicate that it as been reviewed.  The receipt is to be stamped paid. Make sure you stamp the actual receipt paid.

Petty Cash

The internal petty cash fund is for the purchase of small and emergency supplies. This use of petty cash money is not intended to circumvent the purchasing/expenditure process. An internal petty cash fund, not to exceed $500, may be established. Note: Each school has the option of establishing a DISTRICT PETTY CASH FUND. If utilized, this fund shall not be deposited into the internal fund or co-mingled with the school’s internal petty cash fund. NOTE: Co-mingling of different fund sources is strictly prohibited.

• Appropriate authorizations are to be obtained prior to any

disbursements from the petty cash fund. This means a requisition needs to be completed.

• Authorized purchases are not to exceed $50.00.
• A series of purchases for like items, bought by the same

individual/department during a short timeframe which in total exceeds the $50 threshold is not allowed and will be a reportable audit deficiency.

When using internal petty cash, please follow these rules:

• To prevent possible duplicate payment, the original and

dated invoice, bill, or receipt shall contain a description of the items purchased and shall be clearly marked or stamped PAID at the time of reimbursement.

• The receipt/invoice/bill is to be signed by an administrator

prior to reimbursement. The administrator is to verify that the items purchased agree with the items approved for purchase.

• Requests for reimbursement by employees shall be made in a

timely manner. Note: Requests shall be made within 5 business days of the purchase. Reimbursements for previous year’s petty cash expenditures will not be processed.

When using internal petty cash, please follow these rules:

Other “Stuff” to know

• Office type supplies are to be purchased from either

the warehouse or the district’s system contracted vendor (Office Depot) UNLESS there is documentation to support that the same item can be purchased elsewhere at a lower price. That documentation must be attached to the voucher packet.

• All technology purchases (computers, I-pads, etc.) must

be processed thru TERMS. If you are using internal funds, the purchase will have to processed as a “School To Pay” purchase (114M).

Other “Stuff” to know

Frequently noted in the recent audits was the purchase of food or personal type items for staff members from funds deemed inappropriate. Redbook, Chapter Eight Section III 3.5(3) states: “The following expenditures from internal funds are deemed inappropriate and shall not be made except from trust funds collected for a specifically identified purpose.” It then lists 7 areas that are considered restricted expenditures from the internal fund; number 3 states “Articles for the personal use of any student, employee, or other person, except those items that are identifiable as being in recognition of service or promotion of school activities and those items identified under Rule 6A-1.0143, F.A.C., Promotion and Public Relations Expenditures.”

Other “Stuff” to know

Translation:

• Expenditures for staff “recognition of service” is considered an

acceptable expenditure from internal funds. The definition of “Recognition of Service” would be the recognition of a staff member for a meritorious achievement or performance. For example – Ms. Smith, 1st grade teacher is chosen Florida Teacher of the Year.

Other “Stuff” to know

• Expenditures for staff hospitality would be a restricted

expenditure and are not to be made from the internal funds EXCEPT from a trust fund collected for that specifically identified purpose. Examples of these types of purchases would be the purchase of food for staff meetings, clothing items for staff members, back to school breakfasts, etc. Your options for making these types of expenditures with internal funds are as follows: * Funds in a trust account which have been specifically donated or collected for that purpose, * Faculty vending proceeds or * Faculty hospitality funds.

And Finally … A completed voucher packet should contain the following items – from bottom to top.

Requisition Bid information if applicable Additional approvals if applicable Purchase order Packing slips if you receive one Original Itemized Invoice Copy of the check stub File completed voucher packets in numerical order (by check number)

Questions?