Booster Clubs and School Support Organizations Accounting Manual

Transcription

1 Booster Clubs and School Support Organizations Accounting Manual MECHANICSBURG AREA SCHOOL DISTRICT 100 EAST ELMWOOD AVENUE MECHANICSBURG PA Table of Contents 1

2 Introduction, Objective, Distribution and Revision 2 General Accounting Books and Records 3 Receipts/Deposit Procedures 4 Disbursement Procedures 5 Special Accounting Transactions 6 Banking and Administrative Costs 7 Bank Reconciliations 9 Month End Procedures and Reports 10 Federal Tax Requirements 11 Appendix 12 2

3 Introduction This manual is designed to assist Booster Clubs and School Support Organizations of Mechanicsburg Area School District by outlining the bookkeeping services which will be provided to the organizations if they chose to contract with the Mechanicsburg Area School District. Objectives This Accounting Manual represents the procedures to be used by the Booster Clubs, School Support Organizations, and Business Office. This accounting manual has been designed to: 1. Establish uniformity of practices and procedures. 2. Reduce or eliminate the misunderstanding of established procedures. 3. Assure financial operations are properly conducted. 4. Assure reports are properly presented. 5. Provide a reference source on required and recommended accounting procedures. Distribution and Revision of this Accounting Manual The following procedures are subject to change. This manual may be updated periodically to reflect current procedures as prescribed by management. 3

4 GENERAL ACCOUNTING BOOKS AND RECORDS The Business Office will maintain accounts for all Organizations. The Business Office will utilize an electronic bookkeeping system. This system will include the following general accounting reports and records: REPORTS: 1. Trial Balance 2. General Ledger 3. Receipts Journal 4. Check Registers 5. Monthly Report 6. Bank Reconciliation RECORDS: 1. Chart of Accounts 2. Vendor Lists 3. Committee Lists These reports are required to both record and analyze all financial transactions and events during each month for the Booster Clubs and School Support Organizations. An identification number will be assigned to each Booster Club and School Support Organization for accounting and reporting purposes (Appendix A). 4

5 RECEIPTS/DEPOSIT PROCEDURES The following procedures must be followed for processing receipts/deposits: 1. A deposit settlement sheet (Appendix B) must accompany each deposit. The sheet must include the date, check amounts, cash and coin. 2. A member of the Business Office shall compare the deposit settlement sheet with the funds received for accuracy and will resolve discrepancies with the Committee Treasurers. 3. The Committee (Club) Treasurer will endorse all checks. 4. The Business Office will take all deposits to the bank within 1-2 business days of receipt. 5. Receipt/Deposit records shall be maintained in the Business Office. 5

6 DISBURSEMENT PROCEDURES The following procedures must be followed for processing disbursements: 1. A School Support Organization Authorized Signer Form (Appendix C) must be completed as soon as officers are elected and maintained each fiscal year. If there are any changes to elected officers throughout the fiscal year, an updated form must be sent to the Business Office. 2. A payment voucher (Appendix D) will be used as request for disbursements. 3. The Business Office will verify that original invoices are attached and/or appropriate documentation is provided. 4. Vouchers must contain two signatures. 5. Vouchers must contain the Organization name and account number. 6. Checks will be issued weekly. 7. The Business Office will mail checks according to instructions on the voucher. 8. The original invoice and payment information, including the check number and amount paid, shall be maintained in the Business Office. 6

7 SPECIAL ACCOUNTING TRANSACTIONS Void Checks The following procedures will be used to void a check: 1. Post the voided check in the accounting software package. 2. The Business Office shall notify the respective Treasurer of the voided check. 3. The Business Office shall post the voided check to the original account number. Non-Sufficient Fund Checks (NSF) The following procedures will be used to record non-sufficient fund (NSF) checks: 1. Determine which individual account requires an adjustment. 2. Post the adjustment in the accounting software package entering appropriate information on the adjustment. Adjustment/Transfer Procedures Adjustment/transfers may also be used for the following situations: 1. Adjustments may be made between accounts to correct posting errors. 2. Allocation of interest income. 7

8 BANKING AND ADMINISTRATIVE COSTS The following procedures will be followed for Banking and Administrative Costs: Banking Banking services are the responsibility of the Organization. 1. Each Organization shall establish a business checking account at the financial institution of their choosing. 2. Bank service costs, if applicable, will be assessed to the Organization and distribution of costs to each Committee will be at the discretion of the Organization. 3. The checking account shall require two signatures. The signatures will be embedded in the financial accounting system for the purpose of electronically signing checks. 4. For convenience of transporting deposits, the financial institution must have a branch within one mile of the Business Office. 5. Interest distribution is at the discretion of the Organization. If the Organization chooses to distribute interest to the Committees, the Business Office will distribute on an annual basis at the conclusion of each fiscal year using an average monthly balance of each Committee s net income. Administrative Costs The Organization will, at times, incur administrative costs. The Organization will assume the following costs which may be distributed to the Committees at the discretion of the Organization. 1. Printing of checks, bank deposit slips, and (non-business Office) photocopies. 2. Postage will be assessed to the appropriate Committees at the time of disbursements and will be recorded monthly. 8

9 The School District will assume costs for internal reporting between the Business Office and the Organization/Committees. These costs include: 1. Printing and/or copying of internal reports and documents which include forms in this manual. 2. Transportation of deposits to financial institutions. 9

10 BANK RECONCILIATIONS The following procedures will be followed for the reconciliation of bank statements: 1. Bank statements will be received by the Business Office which will prepare the monthly reconciliations. 2. The statement reconciliation will agree to the bank statement balance, the balance sheet, and the checkbook balance. 3. A bank reconciliation form will be created and submitted to the Organization for each month. 10

11 MONTH END PROCEDURES AND REPORTS The following reports will be prepared and distributed monthly to the Organization: 1 Bank Statement Reconciliation 2 Organization Cash Ledger 3 Balance Sheet 4 General Ledger An activity detail report will be prepared and distributed monthly to each Committee. 11

12 FEDERAL TAX REQUIREMENTS Federal Regulations require a Form 1099 be issued for any individual or unincorporated business who renders services to the Organizations and receives at least $ in a calendar year (January 1st to December 31st). The School District will also provide the following services: 1. Federal Form 1099 will be generated and submitted to each applicable entity or individual. 2. Federal form 1096 will be submitted to the appropriate government agencies and 1096 records will be maintained in the Business Office. 12

13 APPENDIX Appendix A Booster Club and School Support Organizations Appendix B Deposit Settlement Sheet Appendix C Authorized Signer Form Appendix D Payment Voucher 13