'4
INTERNAL ACCOUNTING
FOR SCHOOL ACTIVITIES
375.009759
BULLETIN 38
F0zb 1960
no. 38
ASTE DEPARTMENT OF EDUCATION
Tallahassee, Florida
STHOMAS D. BAILEY, Superintendent
od4Ld
UNIVERSITY
OF FLORIDA
LIBRARIES
INTERNAL ACCOUNTING
FOR SCHOOL ACTIVITIES
BULLETIN 38
1960
/ /, / STATE DEPARTMENT OF EDUCATION
Tallahassee, Florida
THOMAS D. BAILEY, Superintendent
Foreword
SUPERVISION AND MANAGEMENT of school activity
money is a problem that has perplexed school administrators
for many years. Until recently, school activities were few in num-
ber; hence, the accounting problems connected with them were
relatively insignificant. With the increase in the number of pub-
lic school activities and expansion in their scope, many problems
concerning the financing of these activities and the administra-
tion and supervision of funds connected with them have arisen.
This publication, A Guide: Internal Accounting for School Ac-
tivities, is designed to give assistance to all school administra-
tors in the proper handling of school activities monies. It makes
available to all the results of previous experimentation and rec-
ommendations of school administrators who have been success-
ful in accounting for these funds.
State and local school officials as well as the general public
have always been concerned about the safe and economical han-
dling of public funds connected with the schools. The demand
for economical, safe, and efficient management of school activity
money is only natural, since these funds annually amount to
millions of dollars state-wide. Until 1947, the experience of those
who had been successful with accounting for internal funds
had not been generally available. On September 16, 1947, a 16-
member committee of local school officials together with con-
sultants from the State Auditing Department and the State De-
partment of Education was appointed by State Superintendent
Colin English to draft recommendations for a new public school
accounting and reporting system. The first manual of State
Board of Education Regulations and an approved system of rec-
ords were published in 1948. In the 1948 manual, all phases of
internal accounting were dealt with in a general way.
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. As one
of the results of this national publication, State Superintendent
Thomas D. Bailey appointed a state-wide committee early in the
spring of 1958 to produce a handbook to be made available to
Florida counties as a guide to acceptable school activity account-
ing procedures. After the proposed handbook had been devel-
oped, it was submitted for discussion and approval to the joint
meeting of the Florida Education Association's Department of
County Superintendents and the Florida School Board Associa-
tion, to the School Finance Officers Association, and also to the
FEA Departments of Secondary and of Elementary Principals.
Following several meetings and extensive revision with
committees of the principals' organizations, another state-wide
committee was appointed in May, 1959. Five copies of the re-
vised handbook were sent to each county for review by county
committees composed of elementary and secondary principals
appointed by the county superintendents. These committees
reported their recommendations to the newly appointed state-
wide committee. A workshop, jointly sponsored by the State
Department of Education, Florida Education Association, and
the FEA Departments of Elementary and of Secondary School
Principals was held in Tallahassee, June 22-24, 1959. This work-
shop incorporated the recommendations received from the county
committees and prepared this final draft.
Careful consideration and intelligent use of the suggestions
in this guide should enable school administrators to establish
sound local policies and procedures of accounting for School
Activity Funds so that monies are expended for the purposes
for which they were collected.
THOMAS D. BAILEY
State Superintendent of Public Instruction
Acknowledgments
THIS GUIDE was made possible through the joint efforts
and cooperation of many individuals and organizations.
Members of the School Finance Officers Association and the
Florida Education Association Departments of Elementary and
Secondary School Principals participated actively in this project
that has resulted in the publication of this bulletin. Lee Young,
Coordinator, Records and Reports, State Department of Educa-
tion, compiled the materials and suggestions and coordinated the
efforts of those involved in preparing this material.
1947 Committee
Members of the 1947 committee (and the positions they held
at the time) who prepared the first manual of State Board of
Education Regulations and an approved system of records were:
SCHOOL SUPERINTENDENTS
L. S. Barstow
Palatka, Florida
Verman Kimbrough
Sarasota, Florida
George Marks
DeLand, Florida
Fred Wild
Sebring, Florida
John Dekle Milton, Chairman
Marianna, Florida
PRINCIPALS
Vernon Dozier
Bartow, Florida
C. I. Hollingsworth
Clewiston, Florida
A. F. Swapp
Melbourne, Florida
W. R. Thomas
Miami, Florida
W. B. Treloar
Daytona Beach, Florida
G. F. Wilson
Tampa, Florida
BOOKKEEPERS
Miss Luella Bowman
West Palm Beach, Florida
Mrs. Annette Bradley
Quincy, Florida
Miss Ann Butler
Fort Lauderdale, Florida
Lacey Johnson
Orlando, Florida
E. E. Winslow
Marianna, Florida
STATE AUDITING DEPARTMENT
W. M. Abernethy
A. J. Henry
P. S. Shaw
Bryan Willis
STATE DEPARTMENT OF EDUCATION
Mrs. Thelma Flanagan
James L. Graham
Thomas N. Morgan
E. L. Morphet
R. L. Johns (Also of the staff of
University of Florida)
1958 Committee
Members of the 1958 committee who prepared the original
draft of the handbook as a guide to acceptable school activity
accounting procedures were:
COUNTY SCHOOL SYSTEMS
Tony Telleck
Auditor of Internal Accounts
Bartow, Florida
William C. Whitten
Supervisor of Audits and Reports
Miami, Florida
Edward E. Francis
Internal Accounts Auditor
Jacksonville, Florida
Gordon Blitch, C.P.A.
General Auditor
Jacksonville, Florida
Roger Weaver
School Lunch Director
Tampa 1, Florida
Wilbur Jerrett
Auditor for Internal Accounts
Tavares, Florida
Miss Mary Earl Myers
Supervisor of Budgets
Gainesville, Florida
J. D. Jenkins
Supervising Principal
Haines City High School
Haines City, Florida
H. C. Campbell, Principal
Key West High School
Key West, Florida
Zeno Stalnacker, Principal
Yates Elementary School
Brandon, Florida
Damon A. Hutzler, Principal
Ft. Myers Senior High School
Fort Myers, Florida
Mrs. Lottie Mandeville, Principal
Brentwood Junior High School
Pensacola, Florida
STATE DEPARTMENT OF EDUCATION
James L. Graham
Director of Administration
and Finance
Lee Young, Chairman
Coordinator, Records and
Reports
Donald R. Thomsen
Assistant in Finance
STATE AUDITING DEPARTMENT
George E. Warner
Mrs. Thelma Flanagan
Supervisor of School Lunch
Program
Lee G. Henderson
Assistant Director, Division
of Community Junior Colleges
Mrs. Betty N. Mitchell
Secretary, Records and Reports
Section
Administration and Finance
FLORIDA EDUCATION ASSOCIATION
Larry I. Walden
FEA Department of Secondary
Principals
Pompano Beach, Florida
1959 Committee
Members of the 1959 committee appointed to prepare the
Guide in its final form for printing were:
Lee Young, Chairman
Coordinator, Records and Reports
State Department of Education
Gilbert L. Wilson, Principal
Parker Elementary School
Panama City, Florida
Jack Morgan, Assistant Principal
Leesburg Junior High School
Leesburg, Florida
Gerald Wilson, Principal
Plant High School
San Jose and Himes
Tampa, Florida
Clem E. Payton, Principal
Northwood Elementary School
Crestview, Florida
William S. Talbot, Principal
Gainesville High School
Gainesville, Florida
Welcome Shearer, Principal
Paxon Senior High School
Jacksonville, Florida
Harold Thompson, Principal
Lee Junior High School
Ft. Myers, Florida
Paul F. Davis, Principal
Manatee Senior High School
Bradenton, Florida
Robert H. Miller, Principal
Broward Estates Elementary
Ft. Lauderdale, Florida
Norris T. Brooks, Principal
Bowling Green Elementary School
Bowling Green, Florida
Troy Penton, Principal
Jay High School
Jay, Florida
L. L. Burleson, Principal
Allentown High School
Milton, Florida
Mrs. Betty Atkinson, Principal
Annie K. Suter Elementary School
Pensacola, Florida
Mrs. Lottie Mandeville, Principal
Brentwood Junior High School
Pensacola, Florida
Other acknowledgements for assistance given are to J. K.
Chapman, Howard Jay Friedman, and John McIntyre of the
State Department of Education, and to E. B. Henderson and
staff members of the Florida Education Association.
We are proud to present this Department of Education guide
as a part of the published series of guides and sincerely hope
that it will be helpful to school administrators who are responsible
for school activity money.
Introduction
T HIS GUIDE contains recommended procedures and forms
for the financial accounting of all funds received by indi-
vidual schools for school activities with the exception of School
Lunch Funds. These funds are covered in a separate State De-
partment of Education publication, Bulletin 33C. The major
purpose of this guide is to establish standard accounts, basic
principles, and terminology to be used in accounting for School
Activity Funds. It classifies and defines standard receipt and
expenditure accounts and includes a system of accounting for
illustrative purposes. The guide is adaptable for use by ele-
mentary schools, junior high schools, senior high schools, and
community junior colleges, and may be used by school systems
or by individual schools within a county system.
School activities, as referred to in this guide, are those activi-
ties that are financed in whole or in part by the operation of the
school activity program and have their money accounted for in
the individual school. They may be of a classroom or extra-
classroom nature. For example, school activities may include
student clubs or organizations, student publications, the sale of
merchandise through a school store, and various instructional
services such as the rental of textbooks or monies collected for
the purchase of supplementary instructional materials.
As school activity programs have increased and expanded
in recent years, the amount of money necessary to finance the
programs has increased proportionately. These activities are
financed in different ways. Some schools receive appropriated
funds from the county board of public instruction for the total
financing of all school activities; in other schools the activities
are partially or completely self-supporting. Regardless of the
methods used to finance school activities, the county system is
ultimately responsible for the funds, and a designated person,
usually the principal, is responsible for the funds of a particular
school.
The guide contains five chapters. Chapter 1 suggests basic
principles that should be considered when the counties establish
their local policies governing School Activity Funds. Contents
of this chapter include common sources of revenue that will
be anticipated from school activities, out-of-school and miscel-
laneous sources of receipts, general provisions for expenditures,
and management of School Activity Funds.
Chapter 2 of the guide presents a suggested accounting sys-
tem utilizing the recommended minimum regular accounts. Some
schools may wish to modify this accounting system so as to
meet their individual needs. The suggested accounting system
is based on generally accepted school procedures, some of which
are as follows:
1. Official receipts should be issued for all money received.
2. All money received should be deposited in a bank.
3. All money expended should be expended by check, except
for small cash purchases paid from the petty cash fund.
4. Supporting documents should be kept for all expenditures
made.
5. Bank reconciliation statements should be made each month.
6. Monthly and yearly financial statements should be pre-
pared.
7. An audit should be made each year, and copies of the audit
should be filed with persons having administrative author-
ity for the school.
Chapter 3 of the guide classifies and defines the minimum
accounts which make up the component parts of the School Ac-
tivity Funds. Money which an individual school may be required
to account for comes from several sources but can be grouped
into two major categories: Student Activities and Non-Student
Activities. The transactions involving both student activities and
non-student activities are recorded under the same accounts as
they appear on the monthly report form for internal accounts,
FA-35p. A separate identification can be made by further break-
downs-as needed by the individual schools-under the minimum
accounts.
Chapter 4 includes the State-adopted accounting forms with
instructions; Chapter 5 is a glossary of terms used in financial
accounting for school activities.
This guide includes many of the recommendations found in
Bulletin No. 17, A Manual of Accounting Principles and Pro-
cedures for Student Activity Funds, published by the Associa-
tion of School Business Officials of the United States and Canada,
and in Bulletin 1959, No. 21, Financial Accounting for School
Activities, published by the Office of Education, U. S. Department
of Health, Education, and Welfare.
The universal use of standard accounts and terminology as
outlined in this guide will (1) help to insure the proper initial
recording of financial transactions; (2) improve accounting for
school activity money; (3) improve school budget-making; (4)
provide information for policy determination; (5) facilitate com-
parisons of financial information among communities and states;
(6) facilitate the reliable reporting to the county board of public
instruction and the public concerning the financial conditions of
school activities; (7) improve the accuracy of local, state, and
national summaries; and (8) serve as a protection for those
individuals responsible for the money.
Table of Contents
Page
Foreword ............................................... i
A cknowledgm ents ....................................... iii
Introduction .......................................... vii
Basic Principles and Sources of Funds ................... 1
Accounting Procedures ................................... 15
Classification of Receipts and Expenditures ................ 24
Approved Forms and Instructions ........................ 27
Glossary of Terms ...................................... 54
CHAPTER 1
Basic Principles and Sources of Funds
T HE PRINCIPLES SUGGESTED in this chapter should be
considered by each school board when it begins formulating
policies governing School Activity Funds. These suggestions are
not intended to be mandatory but do illustrate sound fiscal poli-
cies which may be adopted by county boards of public instruction.
If so adopted, of course, they then become mandatory for the
schools in those counties.
Basic Principles Governing Activity Funds
The county policies suggested in the handbook are based on
the following principles:
1. School Activity Funds are to be used to finance a pro-
gram supplementing the activities provided by the county
board of public instruction.
2. The county board of public instruction shall prescribe
policies for the supervision and administration of internal
accounts. These policies should implement but must not
conflict with those of the State Board of Education. Prin-
cipals should participate in the formulation of these pol-
icies, regulations, and procedures at the county level.
3. All fund-raising projects and activities by the school, by
any group within, connected with, or in the name of the
school should contribute to the educational experiences of
pupils and should not be in conflict with the over-all in-
structional program administered by the county super-
intendent and his appointed staff.
4. Generally, funds collected are to be expended to benefit
those pupils currently in school for whom the funds were
accumulated.
5. In general, funds derived from the student body as a
whole should be expended to benefit the student body as
a whole.
6. The collecting and expending of School Activity Funds
must be in accordance with existing laws, State Board
of Education Regulations, and county board of public in-
struction policies.
Sound business practices should be observed.
7. Student body business functions should be conducted in
such a manner as to offer a minimum of competition to
commercial firms; at the same time they should benefit
the student body.
8. Purchases for any school should not exceed the cash re-
sources of that school during any school year.
9. Florida Statutes and State Board of Education Regula-
tions controlling purchases by school organizations are
to be observed.
10. In the event of violations of any of the rules and regula-
tions and/or policies established by the county board of
public instruction, the superintendent and the board
should be responsible for taking such disciplinary action
as may be deemed necessary, provided such action is not
contrary to Florida Statutes or the State Board of Educa-
tion Regulations.
Sources of School Activity Funds
Monies which an individual school may be required to ac-
count for are grouped into two major categories so that the
amount of money received and expended for student activities
and organizations may be identified separately from other sums
collected by a school.
The first category includes money received and expended for
the operation of the student activity program. The second cate-
gory includes money collected by a school which comes from
sources other than from student activities. This includes re-
ceipts from non-student organizations such as faculty organiza-
tions, PTA, and alumni associations. A set of MINIMUM AC-
COUNTS has been established to account for monies in these
two categories. Sources of money received and expended for
such purposes have been identified and classified as RECEIPT
ACCOUNTS and EXPENDITURE ACCOUNTS. These accounts
are defined in Chapter 3.
Regular Student Activity Sources of Receipts
Sources of revenue for regular student activities are as fol-
lows:
Athletics.-Monies collected in connection with athletic events
and activities are generally derived from one or more of these
sources: (1) sale of tickets; (2) game guarantees in accordance
with mutual agreements; (3) television and radio rights; (4)
program sales; (5) concession sales at athletic events (popcorn,
candy, soft drinks, and the like); (6) donations; (7) insurance
premiums in trust; and (8) other sources consistent with county
school board policies.
Concessions.-Concession sales at all student activities should
be approved by the principal, and should be operated by a stu-
dent body association, faculty groups, or by such outside agency
as may be authorized by the county board of public instruction
upon request of the principal of the school involved. The con-
cession sales should not be operated in competition with the
school lunch program.
Fund-Raising by Groups Within the Student Body.-Income
for special groups should be raised from either dues, sale of
tickets, or other approved activities limited to active members
of the general group enrolled at the school. At athletic and
other events, no group should sell to the general student body
any items such as ice cream or candy and retain the profits un-
less such is the established policy of the school. Fund-raising
drives by student organizations for student body benefits should
be conducted in accordance with school board policies.
Fund-Raising Drives by the Student Body.-Fund-raising
drives by the student body to benefit charitable organizations
should be conducted in accordance with board of public instruc-
tion policies.
Instructional Materials.-In situations where sufficient money
is not otherwise provided, funds to meet instructional needs of
the pupils may be collected insofar as possible on a semester or
school-year basis. The collection and expenditures of all such
funds should be made through the internal accounting system,
and it is the principal's responsibility to see that such monies
are spent for instructional materials. Monies collected for the
purchase of expendable instructional materials should be used for
the purchase of expendable materials normally required during
the semester or school year. They should not be expended for
equipment.
Such funds for instructional materials should be collected
soon after the beginning of each semester or school term in order
that students transferring will therefore not be charged again
for the same materials. Charges for these materials should be as
near actual cost as is feasible. A maximum instructional mate-
rials charge for schools should be set by the board of public
instruction in consultation with principals and teachers.
Paid Admission to Entertainments.-Entertainments to which
admission is charged should be kept to a minimum number. Ad-
mission charges should be low enough, consistent with sound
business practices, to permit the maximum number of pupils to
attend.
Publications.-The sponsor and the principal should contract
for school newspapers, yearbooks, and other publications. The
selling price of student body publications shall be set at a point
consistent with good business practices so that the maximum
number of pupils may benefit from the publications.
Salvage Drives.-Salvage drives as money-raising projects
only should be conducted in accordance with county school board
policies.
School Store.-Merchandise that is needed by pupils to facili-
tate classroom instruction and to accommodate pupils may be
sold in school stores where permission to operate such stores
has been granted by the county school board. The principal
should establish an approved list of merchandise. Profits from
the store may be transferred to the general fund or other desig-
nated accounts.
Student Body Cards or Books.-Student body cards or books,
which may include admission to all athletic events, admission to
all entertainments, and the school yearbook, etc., may be sold
for amounts as approved by the principal.
Vending Machines.-Vending machines should be operated
in accordance with school board policy. Profits should go to
the school.
Other Sources of Receipts
Certain activities which contribute to the general welfare of
students do not easily lend themselves to classification solely as
student body activities. Other activities by their nature in-
volve cooperative effort with groups outside the student body.
It is desirable that the benefits of such activities to students
should be preserved if procedures can be established to provide
proper accounting for funds involved and to insure adherence
to the principles governing internal accounting for School Activ-
ity Funds.
Out-of-School Sources of Receipts
Alumni Association and Other Groups.-Cooperative activi-
ties with alumni associations and other groups whose members
are not patrons or parents of students in the school should re-
quire special approval of the county superintendent and should
be handled as individual cases.
Foundation Funds.-Foundation funds are those donations
from persons or groups outside the school made for specific ed-
ucational purposes. No charge should be levied against these
funds for administrative purposes. All expenditures of founda-
tion funds must be approved by the administrator in charge of
the particular educational activity for which the foundation has
been created.
Outside Groups.-A cooperative activity is one in which the
school officially participates with an outside group, usually the
PTA, service clubs, etc., through planning, staging, conducting,
or attending. Membership of these groups is composed of patrons
and/or parents of students in school. Such activities may be held
on or off the school grounds and will usually take the form of
money-raising events such as salvage drives, paid admissions to
entertainments, or food sales.
Prior to the commencement of a cooperative activity, there
should be an official agreement on the part of the principal, the
student representatives, and the outside group on the division
of expenses and profits as between the student body and the
outside group. There is no prescribed percentage for division of
such profits.
Miscellaneous Sources of Receipts
Assessments.-Assessments of money should not be levied
against any or all the separate accounts to pay for the purchase
of equipment or supplies for another division for which the mon-
ey was not raised, or for the benefit of the entire school, or to
make up a deficit in another account. Assessments should not
be made against instructional accounts for the benefit of the
general account.
Collections for the Board of Public Instruction.-These col-
lections include payments received for lost or damaged textbooks,
etc.
Flower and Gift Funds.-Funds collected from teachers for
flowers and gifts, if collected and handled by the principal or his
representative as an accommodation to the faculty, must be
processed through the School Activity Fund and recorded in the
form of a trust fund.
Transfer of Instructional Aids Money.-Transfer of instruc-
tional aids money from one school to another school in the county
should not be made upon the transfer of a student unless the
board of public instruction transfers a group of students due
to lack of facilities. If this should occur, the receiving school
should receive from the transferring school money and/or mate-
rials as near as possible to the amount collected to cover instruc-
tional aids of the students transferred. A second amount should
not be collected for the same materials from the students within
the county.
Trust Accounts.-Trust accounts are used for money contrib-
uted by or held for the sole use of specific groups and not owned
by the student body as a whole. In general, a trust account should
not be overdrawn, nor may trust funds be expended for general
student body activities. Examples of trust accounts are faculty
association funds and professional dues, student body trust ac-
counts for class and club activities, collections for Community
Chest, Red Cross, March of Dimes, and student insurance.
Interfund Transfers
An interfund transfer is a receipt of the fund to which the
money is transferred and an expenditure of the fund from which
the money is transferred. This type of transaction is never con-
sidered a receipt or expenditure of the total activity fund of
the school.
General Provisions for Expenditures
School Activity Funds should be expended for the purpose
for which they were collected. Policies governing expenditures
apply regardless of the method of making payment, whether by
check or from petty cash fund. Evidence supporting all expedi-
tures must be kept on file. These must be in the form of signed
receipts or invoices. Cancelled checks are only a part of the
supporting evidence for any given expenditure transaction.
Expenditures from trusts are subject to the same rules as those
applied to other expenditures except those for teachers' organi-
zations when collected from teachers and deposited in trust funds
for this purpose. It is strongly recommended that principals avail
themselves of the assistance of their county purchasing depart-
ment before making commitments for purchases.
No student body should be held responsible for an expenditure
made by a pupil or teacher or by any other employee who has
not first received an approval from the principal or his duly ap-
pointed representative. Proposed expenditures not listed should
be considered prohibited until approved. Approval for items not
listed may be requested in writing for consideration by the county
superintendent.
Where expenditures require prior authorization, schools
should anticipate needs in time to permit processing and proper
clearance of written authorization requests. Expenditures should
not be made until authorization has been cleared by the principal.
Oral requests for authorization should not be granted. All au-
thorizations for expenditures should expire one year after date
of approval.
Expenditures Which Require Prior Authorization
It is recommended that these types of expenditures be re-
quired to have prior authorization by the county superintendent:
1. All equipment costing $300 and over (A series of similar
purchases does not obviate this limit.) See section on
Property, page 13.
2. All equipment, whether purchased, rented, or borrowed,
which is to be attached to the building or major equipment
which requires use of public utilities
3. Buildings, permanent attachments to buildings, or other
structures
4. Risers and bleachers or equipment involving risks
5. Purchases made from any employee of the school system
6. Salaries to student body employees (does not include
work done on job basis)
7. Membership in and contributions to any out-of-school or-
ganizations
Expenditures Without Prior Authorization
It is recommended that principals or their duly authorized
representatives be permitted to make these types of expenditures
from School Activity Funds without prior authorization by the
county superintendent:
1. Equipment costing less than $300 (except that which is
to be attached to the building or major equipment which
requires the use of public utilities, other than electric of-
fice equipment or fans); supplies; forms; and postage,
etc. See section on Property, page 13.
2. Repair, moving, and maintenance of equipment pur-
chased by student body groups (Excludes board of pub-
lic instruction equipment.)
3. Purchasing of merchandise sold in student body stores
4. Dues of student organizations
5. Entertainments
6. Publications
7. Incidental instructional materials which are expendable
within the school year
8. Athletic supplies and services
9. Materials for sale to pupils enrolled in shop, arts, and
craft classes
10. Laundry
11. Towels
12. Sanitary service
13. General student body expenses not otherwise restricted
14. Gifts or honorariums to individuals from class or club
funds (should not exceed $20)
Prohibited Expenditures
Expenditures for the following items should not be made from
Student Activity Funds unless from trust funds collected for that
purpose:
1. Equipment, supplies, forms, and postage for curricular or
classroom use for which school board funds are available
2. Repair or maintenance of school board equipment for
which budgeted funds are available
3. Professional books and magazines, except for school pro-
fessional libraries, and personal memberships in profes-
sional organizations, (except for teachers' organizations
when collected from teachers and deposited in trust funds
for this purpose)
4. Custodians' supplies and equipment
5. Articles for the personal use of school board employees
or other persons
6. Equipment, supplies, and service for rooms and areas not
used primarily for student body benefits
7. Contributions to fund-raising drives (except those contri-
butions collected for the specific purpose)
Management of School Activity Funds
The efficient and accurate accounting of school activity funds
requires that sound procedures be followed in handling school
monies received and expended. Some of the common practices
that are followed to insure better management of these funds
are outlined in this section.
Clearance of Money Collected from Pupils.-The principal
of each school should designate one or more persons in addi-
tion to himself who shall be authorized to sign checks with-
drawing funds from the bank account. Two signatures should
be required for all withdrawals; one should be an administrative
employee, preferably the principal, and the other the financial
agent of the school whenever possible. Persons signing checks
should require that proper supporting evidence such as sales slips
or invoices substantiate each check.
Loans and Accommodations from School Activity Accounts.-
School activity accounts should not be used for any purpose which
represents an accommodation, loan, or credit to board of public
instruction employees or other persons, including pupils. Col-
lections received should not be used to cash individual checks.
Board of public instruction employees or others should not make
purchases for personal use through a student body in order to
take advantage of student body purchasing privileges, such as
tax exemptions, school discounts, and the like.
Preservation and Disposal of Records.-The Florida Statutes,
1957, provide two methods that can be used for the preservation
and the destruction of county school system records. The county
board should determine which method will be used:
Section 230.331 (2) (3) provides the following method:
"Section 2. The County Superintendent of Public Instruc-
tion is authorized to photograph, microphotograph, or repro-
duce on film or prints, documents, records, data, and informa-
tion of a permanent character which in his discretion he may
select, and the County Superintendent of Public Instruction
is authorized to destroy any of the said documents after they
have been photographed and after audit of his office has been
completed for the period embracing the dates of said instru-
ments. Photographs or microphotographs in the form of film
or prints made in compliance with the provisions of this sec-
tion shall have the same force and effect as the originals there-
of would have, and shall be treated as originals for the purpose
of their admissibility in evidence. Duly certified or authenti-
cated reproductions of such photographs or microphotographs
shall be admitted in evidence equally with the original photo-
graphs or microphotographs.
"Section 3. The County Superintendent of Public Instruc-
tion is authorized in his discretion to destroy general corre-
spondence which is over three years old and other records,
papers, and documents over three years old which do not serve
as part of an agreement or understanding nor have the value
as permanent records.
Section 119.04 is an alternative procedure to other provisions
of law authorizing the photographing and destruction of public
records and provides the following method:
119.04 Photographing and destruction of public records;
alternative procedure.-Any state, county, or district officer,
board, department, commission, institution, or other such agen-
cy may apply for permission to destroy any public records in
the custody of the applicant, either with or without photo-
graphing the records prior to their destruction. The applica-
tion shall be submitted to the secretary of state, the attorney
general, and the state auditor, which officers shall constitute
ex officio the public records screening board. The public rec-
ords screening board may approve or disapprove the applica-
tion, and if it approves it shall specify whether the records shall
be photographed prior to their destruction. The public records
screening board shall inform the state librarian of its approval
of an application to destroy public records. Upon the request of
the state librarian, any public records the destruction of which
has been approved by the public records screening board shall
be delivered into the custody of state librarian and shall not
be destroyed except in his discretion. Photographs made pur-
suant to this law shall have the same force and effect as the
originals thereof would have.
Club and Class Accounts.-Examples of revenues that may
be credited to classes and club accounts are: (1) dues, assess-
ments, and donations from members; (2) income from entertain-
ments, dances, parties, etc.; (3) sale of club or class sweaters,
emblems, insignias, cards, announcements, etc. Authorization for
expenditures should carry approval of class or club officer, spon-
sor, and the principal. No class or club account may be overdrawn
at the end of the school year. No off-campus clubs may be per-
mitted to carry accounts on school activity accounts books. Any
remaining balance in the account of a graduated class after grad-
uation of that class, and after the class has had an opportunity
to determine the disposition of the balance, should be considered
as belonging to the general fund and should be closed out to the
general fund following a reasonable time after the date of gradu-
ation. The same procedure should apply to the fund balance of
any club three months after the close of the school year during
which said club becomes inactive.
Gifts to Student Body by Classes or Clubs.-Any gifts identi-
fied as coming exclusively from particular pupil groups should
be financed entirely by those groups. This should not prevent a
class or club from contributing toward a project undertaken by
several classes or clubs or by the student body. All such gifts
to the school must first receive the approval of the principal.
A student organization by approval of the principal may set
aside an amount for a specific future project which may reason-
ably be expected to materialize within the period that members
of the organization at the time will remain as undergraduates.
Disbursements from these reserves are subject to the stand-
ard procedures governing School Activity Funds. The reserve
account, once approved and established, may not be drawn on
for other purposes. If the original purpose for the reserve be-
comes inoperative, funds in the account should be transferred
to the general fund or returned to the sponsoring organization.
Commissions on Photography Sales and Similar Transactions.
-Commissions earned from photography sales and other transac-
tions should be credited to the general fund or other designated
accounts. Contracts and collections of monies from these types
of activities must comply with the provisions established by the
school board and be approved by the principal.
Protection of Funds in the School.-The following rules should
guide all employees who are responsible for School Activity
Funds:
1. If possible, bank deposits should be made daily. Receipts
should be deposited 100% intact.
2. Receipts should be written when money is received so its
arrival is established. Do not delay recording or banking
money in order to reconcile supporting documents. Rec-
ord and bank the money received and reconcile to the
amount deposited.
3. A safe, strong box, or vault should be provided by the
school board. The following safeguards are suggested:
a. The combination of the vault or safe should be changed
whenever there is a change in personnel.
b. The combination should be changed if this has not been
done within the past few years.
c. The combination should not be left available for others
to read. If a copy must be kept, it should be adequately
camouflaged.
d. Lightweight safes should be set in concrete or in a wall
to prevent removal and to increase protection.
e. In the event the student body incurs a loss in cash or
open stock or a combination of both, this should be com-
municated to the county superintendent and to the po-
lice immediately. Insurance coverages such as fidelity
bonds and burglary and vandalism policies should be
provided in order to protect these funds.
Protection of Equipment in the School.-In the event the
school incurs a loss of equipment, this should be communicated
to the county superintendent and the police immediately. Insur-
ance coverage should be provided'in order to protect the equip-
ment purchased from School Activity Funds and the gifts from
other sources. If these items are not covered by county board
insurance policies, it should be permissive for the school to pur-
chase insurance from the School Activity Funds to cover same.
Property
It is just as essential to control the property purchased from
School Activity Funds and property donated to school groups or
organizations as it is to control the money. Adequate control
involves:
1. Maintaining a complete record of the property owned
2. Designating a custodian who is to be accountable for spe-
cific items
3. Marking each piece of movable equipment
4. Conducting periodic inventories
5. Checking the inventory against the property record
6. Enforcing accountability of custodian
It is impossible to present in this section an exhaustive an-
alysis of the methods to be used in setting up an adequate prop-
erty control system. Within the framework of the requirements
outlined above, each board should develop a system of control
that will fulfill the requirements of Section 274.01-.10, Florida
Statutes.
The acquisition and disposition of property should conform to
the requirements of Sections 235.04 and 274.04-.07, Florida Stat-
utes. Additions or deletions should be reflected in the property
records as soon after the authorization of the purchase, sale,
junking, or other disposition can be accomplished. Transfers of
property from one custodian to another should be properly au-
thorized. The card record should be changed to reflect the actual
location of the property.
Section 274.02, Florida Statutes, requires an annual inventory
of all property, and also an inventory of the property in the cus-
tody of any custodian whenever there is a change in the custodian.
The date of each inventory should be entered on the property
record.
CHAPTER 2
Accounting Procedures
THE ACCOUNTING PROCEDURES suggested in this chap-
ter are intended primarily for use by the person or persons
responsible for handling the activity money and keeping the
books. This may be the principal or another person who has
been assigned such responsibility. The procedures recommended
are not set forth as the only ones which may be followed. In
many instances modification of these procedures may be neces-
sary to meet the needs of individual schools or school systems.
Anyone planning to use this handbook who is not versed in ac-
counting for school activities might well seek the assistance of
the school finance officer or accountant employed by the county
board of public instruction.
The procedures and forms presented in the handbook are in-
tended to provide a basic framework upon which schools may
develop their own system.
Collections and Deposit of Cash
All money received should be substantiated by official pre-
numbered receipts, auxiliary receipts, class receipt records, tick-
ets, or other auditable records. In all cases where tickets are
used, ticket reports and unsold tickets should be available for
audit. Insofar as it is practicable, the cash should be collected
in the central office. When it is not practicable to collect the
cash in the central office, collections from various classes by
teachers should be turned in daily to the central office. Teachers
who fail to turn in cash collected each day should be held per-
sonally liable for loss. Each day's collections should be deposited
intact in the bank unless provided for otherwise by county pol-
icy. Bank deposit slips should be made up in duplicate, an orig-
inal for the bank and a duplicate signed by the bank teller for
the school activity records. All checks deposited in the school's
bank account should be endorsed with a restrictive endorsement
(For Deposit Only). The principal and the financial agent should
be notified immediately upon the discovery of errors, in order
that necessary adjustments can be made in the handling of
school activity accounts.
All official receipts should be pre-numbered and perpetual in-
ventories should be maintained whenever possible. These should
include: (1) Checks and (2) Receipts. A separate sheet (Form
FA-5-P Rev. 7-1-53) should be filled out by the person in charge
of ticket sales for each different event at which tickets are
sold.
All uniform accounting forms are to be ordered through and
delivered to the school office. These forms are usually furnished
by the county board of public instruction.
Depositing Money in Bank
Receipts should be deposited intact in the bank. If a deposit
of one day's receipts is made, the total of the deposit must equal
the total amount of money taken in and recorded on the receipts
issued for that day. If deposits are not made daily, indicate on
the last receipt the date of the deposit. The deposit must equal
the total of all money collected and recorded on receipts from
the date of the previous deposit.
For purposes of a record of deposits, a duplicate deposit slip
should be made showing the first and last receipt numbers cov-
ering the total of the deposit.
Disbursements
Disbursements should be made by check, except petty cash
items. No check should be made payable to "Cash," but should
indicate the person, institution, or fund to which money is to be
paid.
The financial agent should make disbursements only after
receiving a properly executed request for the check requisition
(Form FA-2-P) with proper accounting support attached. This
request for check should originate with the activity sponsor who
shall fill out the form, attach the proper accounting support pa-
pers, and forward them to the principal for his approval. The
principal, in turn, will forward all approved requests for checks
to the bookkeeper in order that a check may be prepared.
The proper accounting support mentioned heretofore, which
should be attached to the request for check by the activity spon-
sor, will usually be a vendor's invoice. When an activity sponsor
has forwarded a vendor's invoice with his (the sponsor's) signa-
ture of approval together with the request for a check to be
issued through the principal for payment, then, in all cases, the
bookkeeper should assume that the goods or services have been
received and that the prices and specifications appearing on the
vendor's invoice are correct. Where there is some dispute over
a price, this difference should be called to the attention of the
bookkeeper in a note attached to the request for check.
Other Procedures and Transactions
Basic Records
Pre-numbered duplicate or triplicate receipts should be used
as the means of recording cash received. These provide the basis
for entries in the receipts journal. By the same token, pre-num-
bered checks should be used in disbursing funds and providing
the basis for entries to the disbursement journal. Both the re-
ceipts and checks should be designed to show, in addition to the
usual information, the funds to which the charge or credit should
be made.
Vouchers to support cash disbursements may be in the form
of printed check requisitions to be attached to the supporting doc-
uments such as invoices. The check requisition should show
to whom payment is made, the amount, a brief explanation,
and the fund to which it is to be charged. This information is, of
course, in addition to the invoice or statement showing the goods
or services to be paid.
Illustrations of these forms and others that may be of help
in maintaining proper records will be found in Chapter 4 of this
manual.
Transfer Between Accounts
To transfer between accounts, a request for a check should
be executed and forwarded to the bookkeeper as any regular
disbursement. The bookkeeper will handle the disbursements by
journal entries, indicating the correct debits and credits in the
accounts affected. The sponsor or treasurer of the activities con-
cerned should be notified of the transfer.
Refunds
Refunds to students should be made in the same manner as
all disbursements; namely, a properly executed check requisi-
tion, or if it is a small refund, the refund may be made from
the petty cash account, documented by a proper petty cash
voucher.
Filing
There are generally two methods to file the papers connected
with school activity accounts. The decision as to the method
to be used should be left up to the principals and bookkeepers
of the different schools; however, regardless of the particular
method used, papers must be kept in order.
Method #1 (Preferable)
Keep in numerical order by month:
1. Report of monies collected (Form FA-4-P)
2. Check Requisitions (Form FA-2-P)
(Supporting papers to these forms must be firmly at-
tached with a stapler.)
3. Deposit slips
Method #2
Prepare a file folder for each account and file all Reports
of Monies Collected forms and Check Requisition forms
together in the folder. These must be filed in numerical
order according to date and number. (Again, the support-
ing papers must be firmly attached with a stapler.) File
deposit slips by month.
Bank Statement
All School Activity Funds shall be kept in a properly desig-
nated bank account or accounts. The bank account shall be styled
as follows: (name of school), School Activity Fund. The signa-
ture of both principal and other designated person (s) should be
required on all checks written.
Until examined by the auditor, all paid checks and other
items returned by the bank should be filed with the bank state-
ment on which they appear.
The importance of reconciling the bank balance cannot be
overemphasized. The procedure is as follows:
1. When the bank statement has been received (usually two
or three days after the end of the month), arrange can-
celled checks in numerical sequence.
2. Check off, in the distribution of expenditures journal, each
check that has been paid and returned by the bank. This
is done usually with a red pencil or a similar device.
3. Prepare a list of the outstanding checks (checks which
have been written and entered in the record book but
which have not cleared the bank) on the bottom or back
of the bank statement. Deduct the total of the outstanding
checks from the balance shown on the bank statement.
4. If you have deposits in transit (receipts entered in the
record book but not shown on the bank statement as of
the date of reconciliation) add the total of these to the
balance referred to in Item 3 above. If there are no de-
posits in transit, disregard this step.
5. After following the steps on Items 3 and 4, the figure
should be the same as that shown on the depository ledger
account and the last check stub of the month just ended.
If the amounts do not agree, a mistake has been made
(either in the records or in the reconciliation procedure)
and should be traced to source immediately.
6. Corrections should be made for any mistakes discovered.
Sometimes it is necessary to check each cancelled check
and each deposit against the bank statement and/or ledg-
ers to find the error. If an error is found on the bank
statement, notify the bank and get a corrected bank state-
ment. (A form of Bank Reconciliation is illustrated on
page 21.)
The following types of transactions are deemed to require
individual consideration:
Bank Service Charges-If the banks require a service charge
on Student Activity Funds, the amount of the service charge
should be charged to the general account. Most banks, however,
have a policy of not charging the school accounts for services.
Occasionally, a service charge will be made to a school account
through error. The bookkeeping department of the bank should
be notified immediately. The bank will issue a credit to the
school account, offsetting the erroneous charge. Neither the
charge nor the credit need be shown in the books of record.
"Bad" Checks-Some checks deposited by the school may be
returned by the bank for various reasons. The most common
reason is insufficient funds in the account of the person who
drew the check. The proper procedures for handling checks of
this type follow:
a. If the check is made good immediately, the money should
be marked as a re-deposit and not considered as an addi-
tional receipt or expenditure. This re-deposit should be
deposited as a separate item and marked as a re-deposit
of check # (number). The charge back of the initial de-
posit and the credit of the re-deposit by the bank on the
bank statement should be clearly identified and noted on
the statement by the school bookkeeper. It is not neces-
sary to enter the charges or re-deposit in the books of
record.
b. If it is found that the check will never be made good,
the amount of the bad check should be entered in red in
the "Received" column on Form FA-10-P (Depository
Ledger) and the appropriate column on Form FA-12-P
(Distribution of Receipts). The amount of the bad check
should be deducted from the available balance in the
checkbook with complete explanation. The bad check
should be filed with the bank statement for substantiation
of the above entry.
Cancelling Outstanding Checks-If the check is cancelled
before the end of the month in which it was issued, it is necessary
to VOID the entries in all places that the transaction was en-
tered. If the check is to be cancelled after the month in which
it was issued, it should be posted in red in the "Totals Paid
Out" column of the Depository Ledger and should also be posted
in red in the appropriate column in the Distribution of Expendi-
tures. The amount of the cancelled check should also be added
back to the available balance shown in the checkbook. Care
should be taken to give a complete explanation of the transac-
tion in each case.
Lost Checks-Checks that are lost may be replaced by issu-
ing a new check. A stop payment is issued to the bank on the
original check. The new check number is recorded on the Dis-
tribution of Expenditures, but no amounts are recorded. The
explanation column is used to explain that this is a replacement
check for lost check # (number). Another method that can be
used for transactions of this type is the same as outlined under
Cancelling Outstanding Checks.
BANK RECONCILIATION
............ 19 ......
(Month)
Cash Balance per Bank Statement .............. (1) $
Add: Deposits in transit of this month's collec-
tions (not yet credited on bank statement).
Date Banked ............ (2) $
Date Banked _............ (3) $
Total (1+2+3) ................... (4) $
Deduct: Checks issued, but not charged on Bank
Statement (include prior month's checks
not yet charged).
Check No. Date--- $
Check No. Date- $
Check No. ___ Date- $
Check No. Date- $
Check No. Date- $
Check No. Date- $ (5) $
Available Checking Account Balance (4-5) (6) $ *
*Should be the same as the book balance. Any differences should
be explained below.
Remarks or Explanations
Closing the Books
Books of all schools should be closed promptly after the end
of the school year. Books may be held open until July 15 of each
year for the purpose of recording and paying obligations in-
curred within the preceding fiscal year.
Financial Report
A monthly financial report is to be filed with the county su-
perintendent at the end of each month or period by the princi-
pal, as determined by the regulations of the county board of pub-
lic instruction. The financial report is a cumulative report (Form
FA-35p), and the last report will constitute the annual report.
In addition to the above financial report, many counties pre-
pare a financial statement or statements of the income and the ex-
penditures by activity. Included in the financial statement for
each activity should be the previous month's balance, total re-
ceipts for the month, total expenditures for the month, and the
balance in the fund at the end of the month. Though the state-
ments are not part of the uniform system, it is desirable to have
this information as a breakdown of the minimum required ac-
counts shown on the monthly financial report.
Internal Accounting Safeguards
Recommendations made in this section are based upon com-
mon errors found in various school records. The following pro-
cedures, if established and consistently followed, should prevent
many errors in recordkeeping:
1. Issue a receipt for all monies received.
2. Make all payments by check except petty cash items.
3. Total and rule the Distribution Ledgers before preparing
the monthly report.
4. Report (to the county finance officer or auditor immedi-
ately) any errors that cannot be traced to source or cor-
rected.
5. Maintain the current balance after each transaction in
the ledgers and check stubs.
6. Deposit intact all collections of money.
7. Make daily deposits when practicable.
8. Deposit all cash on hand the last banking day of each
month (except petty cash).
9. Maintain all ledgers and journals in ink.
10. Reconcile each bank statement with the check stub and
Depository Ledger.
11. Take advantage of discounts when available.
The following procedures should be prohibited:
1. Erasing figures found in error. (Draw a line through the
incorrect figure and write in the correct figure above.)
2. Paying sales taxes on school purchases.
3. Preparing a Principal's Monthly Financial Report on In-
ternal Accounts without first reconciling the monthly bank
statement.
4. Issuing a check without first securing an itemized invoice
or receipt.
5. Using a statement as the basis for payment.
6. Signing bank checks in advance.
7. Making obligations for which funds are not available.
8. Making personal loans from School Activity Funds.
CHAPTER 3
Classification of Receipts and Expenditures
T HIS CHAPTER contains the classification and definitions of
the minimum accounts for receipts and expenditures. Trans-
actions involving both student activities and non-student activi-
ties are recorded under the same accounts. A separate identifica-
tion can be made on these two categories by making further
breakdowns under the minimum accounts.
Relationship of Accounts to Funds
An ACCOUNT is a descriptive heading under which are recorded
financial transactions that are similar in terms of purpose, object,
or source. Examples of these minimum accounts are: Athletics,
Music, Trust Funds, Instructional Aids, etc. These accounts
appear on the Principal's Monthly Report on Internal Accounts.
A FUND is a sum of money set aside for specific activities of a
school and usually contains several accounts. The State Board
Regulations have established two such funds for Internal Ac-
counts: SCHOOL ACTIVITY FUND and SCHOOL LUNCH
FUND.
Classification of Minimum Accounts for
Receipts and Expenditures
The following classifications of accounts are the uniform ac-
counts that were approved by the State Department of Educa-
tion and the 1947 Committee on Internal Accounts. They are
listed in the order in which they appear on the Monthly Financial
Report Form, FA-35p. An additional breakdown under these
accounts may be made and is necessary in many instances because
of the many activities conducted in individual schools.
Classification of Receipts
Athletics-Gate receipts, game guarantees, ticket sales other
than at gate, proceeds from concessions for athletic fund, sale
of score cards and advertising therein, donations made specifically
for athletics. Be sure to include taxes collected. Physical Edu-
cation Funds should not be reported under Athletics. These
funds should be reported as a physical education account under
Classes, Clubs, or Departments.
Music-Proceeds from activities of musical organizations, sale
of programs, donations specifically for musical organizations and
advertising in programs. Be sure to indicate taxes collected on
musical organizations' paid admissions.
Classes, Clubs, or Departments-Include activities at class,
club, or department level, such as plays, dances, parties, car-
nivals, dues not on an over-all school basis. Funds are usually
earmarked for expenditures at direction of class concerned. Ac-
tivities conducted on an over-all school basis should be shown
under General Account.
Trust Funds-Include (a) monies collected for community
drives, such as March of Dimes, Tuberculosis Seals, etc., and (b)
monies collected for transmittal other than for community drives
such as FEA dues, Blue Cross, county dues, lost or damaged
textbooks, etc. Normally, expenditures for these funds should,
at the end of the term, be at least as large as receipts.
Property Deposits-Include deposits received on locker keys
or similar returnable school property.
School Store-Proceeds from sales of all merchandise sold
at a profit, such as paper, pencils, and books.
Instructional Aids-Funds collected for consumable materials
used directly in the instructional program, such as workbooks,
charts, art supplies, maps, etc.
General-Proceeds from all activities conducted on an over-
all school basis or any activity not specifically classified above.
Classification of Expenditures
Athletics-Include transportation, hotel bills, meals, uniforms,
medical supplies, doctor bills, supplies and equipment, insurance,
taxes, officials' fees, guarantees, cost of printing score cards or
tickets, and other expenses incurred.
Music-Charge to this item transportation of musical organi-
zations, hotel bills, meals, uniforms, taxes, music supplies, equip-
ment or musical instruments, repairs to musical instruments,
printing of tickets and programs, and any other item directly
chargeable to musical programs.
Classes, Clubs, or Departments-Include expenses of activi-
ties conducted at class, club, or department level such as senior
class plays, English department activity, etc.
Trust Funds-Include monies paid out for organizations or
purposes indicated under explanations of Trust Funds under
Receipts.
Property Deposits-Include deposits refunded for return of
school property or monies paid out to replace property not re-
turned.
School Store-Purchase of merchandise to be sold at profit,
such as paper, pencils, and books.
Instructional Aids-Funds disbursed for consumable mate-
rials used directly in the instructional program such as work-
books, charts, art supplies, maps, etc., or monies refunded to
students for unused materials.
General-Cost of all activities conducted on an over-all school
basis or activity not specifically classified above, such as expenses
incurred in putting on a carnival.
CHAPTER 4
Approved Forms and Instructions
CERTAIN FORMS have been approved by the State Board
of Education and the State Auditing Department for the
purpose of maintaining internal accounting records. These forms
are considered as the minimum required for the proper record-
ing and accounting of internal funds and are in most instances
considered adequate for this purpose. Additional and supple-
mentary forms may be used.
A sample of each of these forms, with a discussion on their
use and application, is included in this chapter of the guide.
Section
Name of Form Code Number Reference
1. Check Requisition
2. Official Receipt
3. Report of Monies Collected
4. Report of Tickets Sold or Ad-
missions
5. Request for Services, Equipment
or Supplies
6. Petty Cash Voucher (and Re-
ceipt)
7. Depository Ledger
8. Distribution of Receipts-
9. Employees Individual Ledger
Sheet (Earning Record)
10. Distribution of Expenditures-
Sheet
11. Principal's Monthly Financial
Report
12. Departmental Receipt
FA-2-P
FA-3-P
FA-4-P
FA-5-P
FA-6-AP
FA-7-P
FA-10-P
FA-12-P
FA-12-PRW
FA-13P
FA-25-P
FA-25-PRW
FA-35-p
FA-35-pa
FA-40-P
1. CHECK REQUISITION-Form FA-2-P
Before any checks are written, it is necessary that they be
authorized by properly executed Check Requisitions, Form FA-
2-P. Check requisitions may be prepared by classes, clubs, or de-
partments and submitted to the principal or bookkeeper. If desir-
able to have a copy other than the office copy, this form (FA-2-P)
may be made in duplicate; otherwise, only one copy is necessary.
Check requisitions shall be assigned the same voucher number
as the check issued.
A properly executed check requisition should show the fol-
lowing information:
1. Date (month, day, and year)
2. Name of school
3. Account to be charged (Athletics, Music, etc.)
4. Exact name of payee and address
5. Amount to be paid
6. Purpose of payment (description of purchase or services
received)
7. Signatures-(rubber-stamp signatures are not acceptable)
(a) Teacher Sponsor
(b) Student Treasurer (covering expenditures of classes
and clubs)
(c) Principal
8. Number of checks issued
Original invoices shall be securely attached to office copy. Every
effort shall be made to secure an original invoice as proof of pur-
chase or services rendered. STATEMENTS ALONE SHALL
NEVER BE USED AS A BASIS FOR PAYMENT. However,
if no invoice is available, a full explanation and list of materials
or services purchased shall be shown in detail on the Form FA-
2-P, Check Requisition.
Each receipt must be posted to the Distribution of Receipts
Form in numerical order. This includes voided receipts, in which
instance a notation "void" should be made in the total column
of the Distribution of Receipts Journal.
Approved by
State Department of Education and
Committee on Internal Accounting
1947
NO.
FORM FA-2-P
CHECK REQUISITION
DATE 19
SCHOOL
THE
PLEASE MAKE CHECK PAYABLE TO:
(NAME OF ORGANIZATION)
FOR THE AMOUNT OF S
THESE FUNDS ARE BEING SPENT FOR:
SIGNED (TEACHER SPONSOR) SIGNED (STUDENT TREASURER)
ISSUED CHECK NUMBER APPROVED______
PRINCIPAL
INSTRUCTIONS
TEACHER SPONSORS WILL PREPARE THIS FORM IN DUPLICATE SENDING BOTH COPIES TO SCHOOL TREASURER. WHO WILL INSERT CHECK
NUMBER ON BOTH COPIES. RETAIN ORIGINAL AND RETURN DUPLICATE. INVOICES OR BILLS MUST BE ATTACHED TO ORIGINAL.
2. OFFICIAL RECEIPT (For Money Received)-Form FA-3-P
Official Receipt, Form FA-3-P, shall be issued for all monies
received by the school office from any and all sources. Official
Receipts shall be made in duplicate, the original issued to per-
sons transmitting monies for deposit and the duplicate remain-
ing in the book. Should it be necessary to void a receipt, the
original copy shall be affixed to the duplicate and not destroyed.
Erasures and other mutilations of the amount of the receipt
should not be made.
Each FA-3-P receipt form shall show the:
1. Date of collection
2. Name of the school
3. Individual's name in every instance (even though the
form is printed "NAME OR ORGANIZATION")
4. Amount of money
5. Origin of collection
6. Classification of Account credit
7. Signature of the principal or other responsible employee
whom he may designate
The total of Forms FA-3-P should always equal the sum of
monies received for deposit. In other words, the school office
shall deposit intact all monies collected as represented by Official
Receipts. Cash receipts on hand to be deposited can be verified
at any time by summarizing the Forms FA-3-P since the date
of the last deposit. Deposits should be noted in the lower right
hand corner of the final receipt included in a deposit. The total
amount of deposit and the date of deposit should be included
in this notation.
This pink copy (duplicate) of Official Receipt form is the basic
source for recording cash receipts in the Distribution of Receipts
Journal.
APPROVED BY
STATE DEPARTMENT OF EDUCATION AND
COMMITTEE ON INTERNAL ACCOUNTING
1947
A 392853
FORM FA-3-P
OFFICIAL RECEIPT
(FOR MONEY RECEIVED)
DATE 19
SCHOOL
RECEIVED FROM
FOR
FOR DEPOSIT IN-
(NAME OR ORGANIZATION)
F
"UND (S)
PRINCIPAL OR RESPONSIBLE OFFICER
~
---------
3. REPORT OF MONIES COLLECTED-Form FA-4-P
Report of Monies Collected, Form FA-4-P, is the supporting
document for the Official Receipt and should be completed in
each instance. If the source of collection is fee money collected
from a student, the student's name must be listed unless a list
of names is submitted with the form.
If a teacher turns in two sources of money on the same Monies
Collected Form, then two receipts must be written, one for each
source.
The Monies Collected Form shall show the following:
1. The number of receipt on which the money was recorded
2. The date prepared
3. Classification of the account to be credited
4. Description as to the source of collection (include items,
amount of each, total, or if from students, list students'
names and amount collected from each)
5. Total amount to be deposited
6. Dates showing the period in which the money was received
7. Signature of the teacher or sponsor depositing the money
8. Signature of the principal or other responsible employee
whom he may designate
The original Monies Collected Form shall be filed in numerical
order according to receipt numbers shown at the top of the page.
CVU Sy FORMI FA.4.P
STATS OSTARNWT OF EDUCATION
AMC COMMITTEE oN INTmEmu REPORT OF
ACCOUNTING
1047 MONIES COLLECTED
NO.
+ulr
DAI 19 -
(SOURCe OF COULCTION)
TIANSMITS HEREWITH MONIES. OBTAINED FROM SOURCES INDICATED SLOW FOR DEPOSIT
SOURCE
(IF FROM STUDENTS. LIST NAIMER IPARATELY)
IHF
TOTAL FOR DEPOSIT
I HEREBY CERTIFY THAT THE ABOVE FUNDS ARE LL RECEIVED BY MI FOR .
DEPOSIT DURING THE PERIOD FROM,
Is- TO 1 T-
SIGNED IaSPONsO OR UnACTR)
RECEIVED
SIGNED (CMOOL TKASURKR OR PRINCIPAL)
PREPARE THIS FORM IN DUPLICATI-OTH COPIES TO TREASURER WHO WILL RETURN DUP.
4. REPORT OF TICKETS SOLD OR ADMISSIONS-Form
FA-5-P
Report of Tickets Sold or Admissions, Form FA-5-P, should
be prepared and signed by persons in charge of ticket sales or
admission collections for each activity of the school where tickets
are sold or admissions are collected. For example, this would
include athletic events, dances, movies, and plays.
Admission tickets should be pre-numbered. If it is necessary
to sell tickets at more than one location, such as two gates at a
football game, a Form FA-5-P should be prepared for each loca-
tion and a record maintained of the ticket numbers issued to
ticket sellers.
Proceeds from a night performance may be deposited in a
night depository, and when a receipted deposit slip is received
from the bank, the bookkeeper shall then have a Monies Col-
lected Form prepared and issue an Official Receipt acknowledg-
ing collection. Form FA-5-P shall be securely attached to the
original Monies Collected Form.
It is recognized that errors may occur in making change and
that the actual cash received may not always agree with the
number of tickets to account for. For this reason any difference
in the cash to be accounted for and the actual cash received
should be shown on the Form FA-5-P.
FORM FA.5.P REV 7-1.53
APPROVED BY
STATE DEPARTMENT OF EDUCATION AND
COMMITTEE ON INTERNAL ACCOUNTING
REPORT OF TICKETS SOLD or ADMISSIONS
Nature of Event
Location Date 19-
Opponent School (if any). --
Adm.
Tax Total
PRICE OF TICKETS ADULT
or
ADMISSIONS STUDENT
ADULT STUDENT
NUMBER TICKETS ISSUED
NUMBER TICKETS SOLD (*)
NUMBER TICKETS RETURNED
SUMMARY OF TICKETS SOLD (indicated (') above)
ADULT TICKETS @ $
STUDENT TICKETS @ $-
TOTAL CASH TRANSMITTED HEREWITH $-
I hereby certify that this report is true and accurate.
TICKET SELLER
I hereby certify that the above report accurately represents the
cash transmitted, or tickets returned as indicated.
SPONSOR OR TREASURER
Date this report received 19
Entered on Receipt
5. REQUEST FOR SERVICES, EQUIPMENT, OR SUPPLIES-
Form FA-6-AP
Requests for Services, Equipment or Supplies, Form FA-6-AP,
shall be used by teacher sponsors and departments to secure ap-
proval from the principal before placing orders with suppliers
for services, equipment or supplies.
Inasmuch as the principal shall have full responsibility for
all phases of the operation of Internal Account Funds, a teacher
sponsor or school activity shall never incur any expense or
liability without first securing written approval by the princi-
pal. Therefore, it is of the utmost importance that all concerned
be informed and requested to adhere to this policy.
If the three lines provided on the form for description of
services, equipment or supplies are not sufficient to itemize all
items requested, the items may be listed on a sheet attached
to the form. Upon receipt of the invoice and completion of the
check requisition, this request form shall be attached.
APPROVED BY
STATE DEPARTMENT OFr EDUCATION AND
COMMITTEE ON INTERNAL ACCOUNTING
1947 FORM FA-6-AP
REQUEST FOR SERVICES, EQUIPMENT OR SUPPLIES
DATE 19-- SCHOOL
IT IS REQUESTED THAT THE
(TEACHER, SPONSOR OR ACTIVITY)
BE FURNISHED
APPROX. COST OF ABOVE:
TO BE USED IN OR AT
ABOVE CAN BE SECURED
SIGNED:
APPROVED:-
A(T
(TEACHER. SPONSOR OR ACTIVITY)
PRINCIPAL
TO BE FILLED OUT IN DUPLICATE. BOTH COPIES TO PRINCIPAL WHO WILL RETURN ONE APPROVED COPY.
-
6. PETTY CASH VOUCHER (AND RECEIPT)-Form FA-7-P
The principal's Petty Cash Fund (not to exceed $25) issued
by the board of public instruction for use in purchasing office
supplies is not to be considered a part of the Internal Fund.
This Petty Cash Fund shall be kept separate and not commingled
with the school's Internal Fund. Reimbursement of the princi-
pal's Petty Cash Fund is handled on the imprest system in the
manner prescribed by the county board.
School administrators may establish petty cash funds from
School Activity Funds; however, the practice of making petty
cash disbursements should be kept to a minimum, and the total
of all petty cash funds should not exceed $25. Reimbursement
of this fund is to be made by check (supported by invoices, sales
tickets, etc.) and charged to the appropriate internal fund ac-
count.
If it is essential to establish a petty cash fund, the following
procedure should be followed:
1. Upon authority of an approved check requisition (Form
FA-2-P), issue a check made payable to an individual and
show the words "Petty Cash Fund" immediately follow-
ing the person's name.
2. The check is then entered in the Distribution of Expendi-
tures (Form FA-25-P) but instead of entering the amount
under the "amount" columns, enter the amount under the
"explanation" column. The reason for not posting this
check under the "amount" column is to keep from over-
stating expenditures.
3. Enter the check on a Form FA-10-P, Depository Ledger
Form, captioned "Petty Cash." Under the "explanation"
column show the individual's name, department and petty
cash fund, and the amount under the column "paid out."
4. At the end of the school year, or before if no longer
necessary, when the petty cash fund is returned, the office
should issue Official Receipt (Form FA-3-P) to the indi-
vidual returning the fund. The words "Petty Cash Fund"
should also be shown on the receipt following the person's
name. The Official Receipt should be entered on the Dis-
tribution of Receipts (Form FA-12-P) in the "explana-
tion" but not in the "amount" column. The reason for
not posting this receipt under any "amount" column is to
keep from overstating receipts.
5. Enter the receipt on Form FA-10-P, Depository Ledger
Form, captioned "Petty Cash." Under the explanation
show the individual's name and record the amount under
the "received" column which will leave a zero balance and
close out the account.
6. If it becomes necessary to replenish a petty cash fund at
any time, it may be done by issuing a check upon author-
ity of an approved Check Requisition, supported with prop-
er receipts or invoices, and entered in the Distribution of
Expenditures (Form FA-25-P) in the same manner as any
other expendituress, posting the expense under the proper
account classificationss.
The individual responsible for the petty cash fund must
at all times have in his or her custody cash, or paid bills,
or a combination of both, totaling the amount of the petty
cash funds.
Until the petty cash fund is returned and posted in the
depository ledger as noted above, the total disbursements
(cr. col.) in the Depository Ledger will exceed the total
expenditures in the Distribution of Expenditures by the
amount of the petty cash fund.
7. When reconciling the bank statement at the end of the
month, it will be necessary to add the amount of the petty
cash fund to the bank balances.
Each Form FA-7-P should show:
1. Number of petty cash vouchers issued during the current
year
2. Date payment was received
3. Name of the school
4. Name of the person to whom payment is made
5. Amount of payment
6. Description of articles or services purchased
7. Classification of account to be charged
8. Signature of person actually receiving the cash
This Form to be Used by School Office and/or Lunch Room School Activity or When Money is Taken from Petty Cash to Buy Small Items Under $10.00
AnDroved bv FORM FA-7-P
State Delprtment of Education and E
Committee on Internal Accounting PETTY CASH VOUCHER
1947
(AND RECEIPT)
NO. DATE _19__
_----- SCHOOL
PAID TO___
FORG---_
CHARGE TO_ ---FUND(S)
MONEY RECEIVED BY
7. DEPOSITORY LEDGER-Form FA-10-P
Form FA-10-P is used to record the entire school activities
cash account. This account should show the cash balances at
the beginning of the school year showing July 1, under the column
captioned "date," the words "Beginning Balance" under the col-
umn captioned "explanation," and the amount under the column
captioned "balance." Each month thereafter, the total of all cash
receipts reflected in the Distribution of Receipts Journal (Form
FA-12-P) should be posted to this account under the caption
"Total Received." Likewise, the total of all cash disbursements
reflected in the Distribution of Expenditures Journal (Form FA-
25-P) should be posted to this account under the caption "total
paid out."
The last date of each month should be shown under the col-
umn captioned "date." It is not necessary to show anything
monthly under the caption "explanation" as the record is self-
explanatory. Under the column "code or folio" show the initials
"CR" designating cash receipts and "CD" designating cash dis-
bursements, and the page number of the respective journals
in which the total amount appears.
The opening balance each month plus total receipts, less total
disbursements, will always equal the monthly closing balance
which should be reconciled with the bank statement balance
at the close of each month.
In a like manner, a Depository Ledger page should be estab-
lished for each account shown on the Distribution of Receipts
and Distribution of Expenditures forms. The combined total
balances of these ledger sheets at the end of the month should
be reconciled with the bank statement balance at the end of each
month.
DEPOSITORY LEDGER
Depository
Fund
FISCAL YEAR 109 19
DATE EXPLANATO CODE TOTAL TOTAL
TE EXPLANATION OR RECEIVED PAID OUT BALANCE
FOLIO (oEslr) CREDITT
I I I-
SI.
-5
fl
3
j
t
5
c
u.
a.
;runvt
8. DISTRIBUTION OF RECEIPTS-
Form FA-12-P ( 7 Columns)
Form FA-12-PRW (22 Columns)
Distribution of Receipts journal sheets are available in 7 col-
umns (Form FA-12-P) and 22 columns (Form FA-12-PRW) re-
spectively. All Official Receipts (Form FA-3-P) shall be recorded
in numerical sequence in the Distribution of Receipts Journal.
All receipts of any given month shall be recorded on the Distribu-
tion of Receipts sheet for that month. The information to be
transferred from the receipt is as follows:
1. Date of the receipt
2. Name of person who deposited money and an explanation,
if desired
3. Receipt number
4. Total amount received
5. Forward this amount to the column headed with the name
of the account shown on the line on Official Receipt headed
"for deposit in." (If the receipt covers money from more
than one fund, the total may be entered in the total column
and the appropriate amount forwarded to the appropriate
account column.)
6. The "code or folio" column may be used for various notes
or information.
A void receipt must be recorded in proper sequence with a
notation in the total column-"void."
Total all columns at the end of the month, making sure that
the total of the various account columns is in agreement with the
total of the "total" column. The totals of the various columns
are then posted to the appropriate ledger page.
A record of year-to-date total receipts and expenditures of
the various accounts may be maintained by adding each succeed-
ing month's receipts shown in the "receipts" column of the ledger
page and each succeeding month's payments shown in the "pay-
ments" column on the ledger page. This total can be footed in
light pencil figures without interfering with the regular monthly
postings. By following this procedure, it is necessary only to
copy figures from the ledger pages when preparing the Princi-
pal's Monthly Financial Report (Form FA-35p).
DISTRIBUTION OF RECEIPTS
FISCAL YEAR 19- TO 19
DATE
BUDGETED RECEIPTS
I I I SOURCES OF RECEIPTS
RECEIPT TOTAL
NUMBER
I'IN
EXPLANATION
9. EMPLOYEES INDIVIDUAL LEDGER SHEET (Earning
Record)-Form FA-13P
This form (FA-13P) is to be used for employees of lunch-
rooms, school stores, summer schools, or extra help at school, for
employees not on the regular county board of public instruction
payroll.
Part 5P, Circular "E" Employer's Tax Guide, page 4 de-
fines employee as:
Every individual who performs services subject to the will
and control of an employer, both as to what shall be done and
how it shall be done, is an employee for purposes of withholding
taxes. It does not matter that the employer permits the em-
ployee considerable discretion and freedom of action, so long
as the employer has the legal right to control both the method
and the result of the services.
Page 9 of this tax guide specifically includes students working
for school, college or university as employee subject to withhold-
ing taxes.
An Employees' Individual Ledger Sheet should be maintained
for each employee as a record of his/her earnings. If there are
several employees, a summary Form FA-13P should be prepared.
This summary serves two purposes:
1. As proof of correct postings to the employees' individual
earnings records
2. As the basis for preparing Employer's Quarterly Tax Re-
turns (Form 941)
Every employer subject to these taxes is assigned a nine-
digit identification number by the District Director of Internal
Revenue. A school which has not applied for an identification
number should get an application Form SS-4, and file it with the
District Director of Internal Revenue, providing that it is the
policy of the school to employ personnel.
New employees should be asked to complete a Withholding
Exemption Certificate Form W4 on or before commencement of
employment. Employers are required to allow exemptions to
each employee on the basis of the certificate signed by the em-
ployee. If an employee fails to furnish a certificate, the employer
is required to withhold tax as if the employee had claimed no
withholding exemptions.
NAMF
POSITION
EMPLOYEES
INDIVIDUAL LEDGER SHEET
(EARNING RECORD)
ADDRESS
SCHOOL YEAR 19 19_
RATE OR SALARY
CHECK TOTAL
DATE CHECK AMOUNT H. GROUP COUNTY AMOUNT
DATE NUMBER PAIDLDNG INSURANCE RETIREMENT AMOUNT
TAX EARNED
B
__ I
T_ ---M- T UUCRM TR TC 1N R Y .T RUL CU
THIS FORM TO BE USED FOR EMPLOYEES OF LUNCH ROOMS. EXTRA HELP AT SCHOOL BUILDING. FOR EMPLOYEES NOT ON REGULAR COUNTY PAYROLL
~
10. DISTRIBUTION OF EXPENDITURES-
Form FA-25-P ( 8 Columns)
Form FA-25-PRW (23 Columns)
Distribution of Expenditures journal sheets are available in
8 columns, Form FA-25-P, and 23 columns, Form FA-25-PRW,
respectively. All Check Requisitions, Forms FA-2-P, shall be
recorded individually and in numerical sequence in the Distri-
bution of Expenditures journal. Voided checks must also be re-
corded in the proper sequence, making a notation "void" in the
total.
The following information shall be shown on the Distribution
of Expenditures sheet:
1. Date of the check
2. Check number under column captioned "voucher number"
3. Name of the payee under column captioned "explanation"
4. "Code or folio" column unnecessary if the number of the
check requisition and the check number are the same (If
the check number and the requisition number are different,
enter the number of the requisition in the "code or folio"
column.)
6. The total amount should be distributed to the appropriate
account column or columns
All cash disbursements shall be recorded in the month in
which monies were paid out.
Total all columns at the end of the month, making sure that
the total sum in various account columns is in agreement with
the total of "total" column. The totals of the various columns
are then posted to the appropriate ledger page.
DISTRIBUTION OF EXPENDITURES
FRO" FUND
FISCAL YEAR 19__ TO 19---
CLASS!ICA1O01 OF EXPENDITURES
Xe CODE
DATB um EXPLANATION OR TOTAL
FOLIO
BUDOiTEOD KXPENDITURMS
U
-I ITI
ILL)
11
__ __ ____ ~j] -- I
EXPENDITURES
DISRIBTO O XENIUE
11. PRINCIPAL'S MONTHLY FINANCIAL REPORT ON IN-
TERNAL ACCOUNTS- Form FA-35p
Form FA-35pa
This report is to be filed at the end of each month and is
cumulative so the last report will constitute the annual report.
Preparation:
1. The amounts for the "receipts" side of the report may
be obtained from the Distribution of Receipts.
a. The amounts for the "this month" column will be
the totals from the month for which the report is
being prepared.
b. The amount for the "year to date" column may be
obtained by combining the totals of all of the months
from the beginning of the year through the month
for which the report is being prepared.
2. The amounts for the "PAYMENTS: (By Accounts)"
side of the report may be obtained from the Distribu-
tion of Expenditures.
a. The amounts for the "this month" column will be
the totals from the month for which the report is
being prepared.
b. The amounts for the "year to date" column may be
obtained by combining the totals of all of the months
from the beginning of the year through the month
for which the report is being prepared.
3. The "accounts payable" amount should be the total of
all unpaid bills as of the time of the report and should
be entered on the report in the appropriate space.
4. Information pertaining to the report classifications is
printed on the back of the report form.
5. The report is to be prepared in duplicate.
a. One copy must be submitted to the office of the
county superintendent.
b. One copy is to be retained in the school records.
PRINCIPAL'S MONTHLY FINANCIAL REPORT ON INTERNAL ACCOUNTS
This report 6 to bh fleld at Ithe nd of e'h month or p atid., .d J.tetneed by rgulhaions of the Count) BHw-d uf Pubic Itutrutiaon
It Is cumuoltlve and the Ijst report wdll cunstltute the auual apoan. The county supatinktndnt will inlud this imfornAton in. a
Supplementary Rtpurt to he submitted with the Annual Funancial Rport.
School -Nrto ( ) Data_ 19_.
sch-oi -.---------- -['5^ i "-----,-
Gn.l Schol Activity Fund. List all unds rnd ersd b your thool which may be tsd for any general sthuul aScLvty (Onlt
Sohuol L-lh Funds Thee arse noludnd on the Monthly RBport ot Shoot Lunch Plagarm. ubmlhnted on Porn SL MB __
E Acnt This aMcth Yonr to t un I PAYMENTS ela Aceunts) T5hs Month Yter to DBa
I Athlet is 1S Athltelis
2 Mus,' 2 Music
3 Classes. clubs or 3 Classes, clubs or
departments departments
4 Tust Furnds 4 Trust Funds
5 Property Deposits 5 Property Depo-,it
6 School Store 6 School Store
7 Instructional Aids 7 Intructonal Aids
8 Gcnsral 8 General
TOTAL RECEIPTS TOTAL PAYMENTS
BALANCE AT BEGINNING on I BALANCE AT CLOSE
TOTAL RECEIPTS AND it) 31 TOTAL PAYMENTS AND ) i
BALANCES BALANCES
NI. (SI) Thus (itur esrmrlne nostanS (2t TInts should bme (4)
and 3 should b sm 0 (S Accounts Payable x x
-us, -I -
*Regulations o b the State Board with reference to Internal Accoutingadped Jne ar a ed Jollones sep arat accounting
wlth a separate bank account. shall be provided for lunchroom funds All other internal accounts or a given school or schools shall
be In one and only one bank accunt"
-"Are any of these accounts more than 60 days old Yes No__ ? I yes. state amount more than 60 days old $
I certify that thls financial report covering the period of 19_ to __9 is correct
Sgned-
nrclpf l
12. DEPARTMENTAL RECEIPT-Form FA-40-P
Form FA-40-P should be pre-numbered and is to be issued
only to employees delegated the responsibility of making collec-
tions, such as supply fees, towel fees, shop cards, workbooks,
choir robes, band instrument maintenance fees, lost and damaged
textbooks, library books and library fines, etc. Departmental re-
ceipts are not provided for use by classes and clubs. The prin-
cipal, or person whom he may designate, shall be fully respon-
sible for maintaining an accurate record of Departmental Re-
ceipt books. This record is to be maintained for audit purposes
and should show the name of the individual to whom the book
was issued, number of the receipts contained therein, date the
book of receipts was issued, and the date it was returned to the
principal's office for safekeeping. As soon as a collector has com-
pleted a Departmental Receipt book or has no further use for
it, the book should be returned to the office and retained for
audit purposes.
Collections should be deposited with the principal's office at
least once a week if the amount is small, or more frequently if
the amount of collections warrant more frequent deposits. All
monies are to be deposited as of the last day of the month.
When depositing monies with the bookkeeper, the collector
shall submit the Department Receipt book together with the
funds being deposited. The bookkeeper should count the money
in the presence of the collector, if possible; add the Departmental
Receipts (Forms FA-40-P) issued since the collector's previous
deposit, and, if the cash and receipts are in agreement, the book-
keeper should issue the collector an Official Receipt (Form FA-
3-P), acknowledging the deposit. On the final Departmental Re-
ceipt making up a deposit, the following information should be
shown in the space captioned "Bookkeeper's Use."
In order to save time in writing the name of the school in
longhand on the Departmental Receipts, it is suggested that this
be done by means of a rubber stamp. When showing the name
from whom monies were collected, always show the name of
the individual transmitting the money, regardless if the funds
were paid in by a class, club, or organization.
The source of income should be specifically stated. An item
like "Phys. Ed. Uniform" $1.75 is too general; sales should be
itemized in this way:
1 Pair Shorts 1.00
1 T-Shirt .75
Person acknowledging collection should sign his name to receipts,
and not just his initials.
F or: .... .. _.. -- -.-----.--.---------. . .
R received F rom --------- --- -------------------------
--------------------- Dollars
TEACHER
Form FA-40-P
CHAPTER 5
Glossary of Terms
THIS CHAPTER contains definitions of terms used in this
guide and such additional terms as seem necessary to
achieve common understandings concerning financial accounting
procedures for School Activity Funds. The glossary is arranged
alphabetically with appropriate cross-referencing where nec-
essary.
Some of the definitions shown are taken or adapted from the
recommendations of the National Committee on Governmental
Accounting.' Others have been taken or adapted from Hand-
book 12 and Handbook II3 in the State Educational Records and
Reports Series.
Abatement-A reduction of a previously recorded expenditure or re-
ceipt item by such things as refunds, rebates, and collections for
loss or damage to school property. See REFUND.
Account-A descriptive heading under which are recorded financial
transactions that are similar in terms of a given frame of refer-
ence, such as purpose, object, or source.
Account, Regular Expenditure-In this guide, regular expenditure ac-
counts are used to record total expenditures for current expense
and capital outlay by student activities and organizations.
Account, Regular Receipt-In this guide, regular receipt accounts are
used to record income received for the operation of student activi-
ties and organizations.
iNational Committee on Governmental Accounting. Municipal Accounting and Audit-
ing. Bulletin No. 14, Municipal Finance Officers Association of the United States and
Canada, Chicago, September 1951.
2Paul L. Reason, Emery M. Foster, and Robert F. Will. The Common Core of State
Educational Information. Washington D.C., U.S. Government Printing Office, 1953. (U.S.
Department of Health, Education, and Welfare, Office of Education, State Educational
Records and Reports Series: Handbook I, Bulletin 1953, No. 8.)
'Paul L. Reason and Alpheus L. White. Financial Accounting for Local and State
School Systems, Standard Receipt and Expenditure Accounts. Washington D.C., U.S.
Government Printing Office, 1957. (U.S. Department of Health, Education, and Welfare,
Office of Education, State Educational Records and Reports Series: Handbook II, Bulle-
tin 1957, No. 4.)
Accounting Period-A period of time for which financial statements are
prepared; for example, July 1 to June 30.
Accounts Payable-Unpaid balances or invoices against a School Activity
Fund which are owing to private persons, firms, governmental units,
or others.
Accounts Receivable-Amounts owed to the School Activity Fund by
private persons, firms, governmental units, or others.
Adjusted Bank Balance-See RECONCILIATION OF BANK STATE-
MENT.
Assessment (Student Activity Fund)-A compulsory levy made by a
student body organization against its members to defray all or part
of a specific obligation.
Assets-The entire property owned by a school activity organization.
Athletic Fund-See FUND, ATHLETIC.
Audit-Pre-Audit-The examination of contracts, orders, and other or-
iginal documents for the purpose of substantiating individual trans-
actions before settlement.
Post-Audit-An examination of records and documents by an au-
ditor after the close of a fiscal period. The process of securing
evidence for one or more of the following purposes: (a) deter-
mining the propriety of completed transactions; (b) ascertaining
whether all transactions have been recorded; (c) determining
whether transactions are accurately recorded in the accounts and
in the statements drawn from the accounts.
Balance-The difference between the total debits and the total credits
of an account; the total of an account containing only debits or
only credits.
Board of Instruction, Public-The elected body which has been created
according to State law and vested with responsibilities for educa-
tional activities in a county.
Capital Outlay-An expenditure which results in the acquisition of
fixed assets or additions to fixed assets. It is an expenditure for
land or existing buildings, improvement of grounds, construction
of buildings, additions to buildings, remodeling of buildings, or in-
itial or additional equipment. In this guide, capital outlay usually
includes expenditures from an activity fund which result in the
acquisition of initial or additional equipment.
Cash-Currency, checks, postal and express money orders, and bank-
ers' drafts on hand or on deposit with an official or agent designated
as custodian of cash; and bank deposits. Any restriction or limita-
tions as to its availability should be indicated.
Cash Basis-The basis of accounting under which revenues are recorded
only when actually received; only cash disbursements are recorded
as expenditures.
Cash Discount-An allowance received or given if payment is completed
within a stated period. The term is not to be confused with "trade
discount."
Check-A bill of exchange drawn on a bank payable on demand; a
written order on a bank to pay on demand a specified sum of money
to a named person, to his order, or to bearer out of money on de-
posit to the credit of the maker. A check differs from a warrant in
that the latter is not necessarily payable on demand and may not
be negotiable; and it differs from a voucher in that the latter is
not an order to pay. A voucher-check combines the distinguishing
marks of a voucher and a check; it shows the propriety of a pay-
ment and is an order to pay. It is cancelled when it has been paid
by the bank and thus "cleared" and returned to the writer.
Classification-The grouping of transactions, entries, or accounts under
a common head or heads; a list of such groupings; i.e., athletics,
music; classes, clubs; or departments; etc.
Clearing Accounts-Accounts used to accumulate total receipts or ex-
penditures either for later distribution among the accounts to which
such receipts or expenditures are properly allocable, or for record-
ing the net differences under the proper account. Clearing accounts,
as such, are not used in student activity fund accounting.
Closed-The status of the books after closing has been completed; the
termination of entries in the ledger for any month or fiscal period.
Closing the Books-The process of putting the account books in order
at the close of a month, or a fiscal period, so that a trial balance
and financial reports may be prepared.
Commission-A share of sales or a donation from any company or in-
dividual given the school or school personnel in return for the sale,
rental, or promotion of any items within the school.
Concession-The act of granting to an individual or group the right to
use portions of the school premises for some specific purpose. Us-
ually, it is for the sale of confections, such as dairy products, sand-
wiches, peanuts, popcorn, and soft drinks sold at athletic games,
plays, concerts, and similar events.
Controlling Account-An account usually kept in the general ledger
in which the postings to a number of identical, similar, or related
accounts are summarized so that the balance in the controlling ac-
count serves as a check on the accuracy of the detailed account
postings and summarizes the expenditures and receipts for the
purpose of comparison.
Cost-The amount of money or money's worth given for property or
services.
Current-As used in this guide, the term has reference to the fiscal year
in progress.
Deficit-The excess of the obligations of a fund over the fund's re-
sources.
Deposit, Returnable-Money collected from students and held in a school
fund for future return at a designated period for the purpose of
covering losses or damages to school-owned supply and equipment
items while being used by the students.
Disbursements-Payments by cash. See CASH.
Double Entry-A system of bookkeeping which requires for every entry
made to the debit side of an account or accounts an entry for the
corresponding amount or amounts to the credit side of another ac-
count or accounts.
Dues-A regular fee or charge made to students for the privilege of
being a member of a particular club or student-body organization.
Equipment-A material item of a non-expendable nature, such as a
built-in facility, a movable or fixed unit of furniture or furnishings,
an instrument or apparatus, a machine (including attachments),
instructional skill-training device, or a set of small articles whose
parts are replaceable or repairable, the whole retaining its identity
and utility over a period of time which is characteristic of, and
definable for, items of its class.
Expenditures-If accounts are kept on the accrual basis, this includes
total charges incurred, whether paid or unpaid, for current ex-
pense, capital outlay, and debt service. If accounts are kept on
the cash basis, this includes only actual disbursements for these
purposes.
Expenditures Distribution Ledger-As used in this guide, a ledger which
provides a distribution of expenditures among the regular expendi-
ture accounts and the clearing expenditure accounts of a given
fund.
Expense, Travel-Expenses incurred by students and sponsors of a school
activity in connection with travel related to the activity, or other
than those expenses directly chargeable to student transportation.
Fidelity Bond-A bond guaranteeing the county board of public in-
struction against losses resulting from the dishonest actions of
the treasurer, or other employees of the county board of public
instruction.
Financial Statement-As used in this guide, a formal written presen-
tation which sets forth information concerning the financial con-
dition of a school activity fund.
Fiscal Period-Any period at the end of which a school determines its
financial condition and the results of its operations, and closes its
books.
Fund-A sum of money or other resources set aside for specific activi-
ties of a school, usually containing several accounts. The fund ac-
counts constitute a complete entity, and all of the financial transac-
tions for the particular fund are recorded in them.
Fund, Athletic-A sum of money used to finance the activities which
are directly related to the interscholastic athletic program of a
school and such intramural athletic activities as may be financed
from school activity money.
Fund, Instructional Fees and Rentals-A sum of money used to finance
the activities primarily of a classroom nature, such as instructional
aids and laboratory fees.
Fund, Merchandise-A sum of money used to finance the merchandising
activities of a school which are directed primarily toward meeting
the merchandising needs of students, teachers, and the general
public. Included are the merchandising activities of school-spon-
sored stores, shops, canteens, classes, clubs, etc.
Fund, Miscellaneous-A sum of money used to finance student-related
activities not accounted for in the other funds. Sometimes this is
referred to as a General Fund.
Fund, Publications-A sum of money used to finance the preparation,
production, and distribution of student-produced publications such
as the school paper, school yearbook, and school magazine.
Fund, Student Organization-Money used to finance the activities of
clubs, classes, and similar student organizations which are under
the supervision of the school.
Fund Accounts-All accounts necessary to set forth the financial opera-
tions and financial condition of a fund.
General Ledger-A book, file, or other device in which accounts are kept
to the degree of detail necessary; in it are summarized the financial
transactions of the school. General ledger accounts may be kept
for any group of items of receipts or expenditures on which an
administrative officer wishes to maintain a close check.
57
Gift-Money received from a philanthropic foundation, private indi-
vidual, or private organization for which no repayment or special
service to the contributor is expected.
Grant-Money paid to a school activity by the school district for which
no repayment is expected.
Inactive-A student body organization is considered inactive upon dec-
laration of the principal after the organization has ceased to func-
tion as such or after the need for the organization has passed.
Intact, or Deposited Intact-A bank deposit or money presented to a
bank for the credit of the Student Activity Fund or School Lunch
Fund in the same form as received. This implies that any receipt
of funds in the form of cash shall be deposited as cash. Receipts
in the form of checks shall be deposited as checks to the accounts
for which they were received. The cashing of a check from funds
on hand would be a violation of this concept as would be the sub-
stitution of a check for cash. All funds from a given source would
appear as such on a separate bank.
Interfund Transfers-Money which is taken from one school's activity
fund and added to another school's activity fund. Interfund trans-
fers are not receipts or expenditures of a school.
Internal Control-A plan of organization under which employees' duties
are so arranged-and records and procedures so designed-as to
make it possible to exercise effective accounting control over as-
sets, liabilities, revenues, and expenditures. For example, under
such a system, the employees' work is subdivided so that no one
employee performs a complete cycle of operations. For instance, an
employee handling cash would not post the accounts receivable
records. Again, under such a system, the procedures to be followed
are definitely laid down and such procedures call for proper authori-
zations by designated officials for all actions to be taken.
Inventory-A detailed list or record showing quantities, descriptions,
values, units of measure, and unit prices of property on hand at
a given time.
Invoice-An itemized statement of merchandise shipped or sent to a
purchaser, consignee, etc., with the quantity, value or prices, and
charges annexed.
Journal-Any form in which the financial transactions of the school
district are formally recorded for the first time, such as a cash re-
ceipts book, check register, and journal voucher.
Liabilities-Debt or other legal obligations arising out of transactions in
the past which are payable but not necessarily due. Encumbrances
are not liabilities; they become liabilities when the services or mate-
rials for which the encumbrance was established have been ren-
dered or received.
Memoranda Account-An informal record of a school activity transac-
tion that cannot be recorded under the regular financial accounts
but for which a record is desired.
Merchandising Accommodation-A merchandising accommodation is
defined as an accommodation provided by a school activity fund
for individual members of the organization or student body mem-
bers for merchandise not readily available from another local
source. Examples may be school rings, emblems, and similar spe-
cialty items made available and primarily without profit to the
fund.
Net Expenditure of an Activity-The actual outlay of money by a school
activity for some service or object after the deduction of any dis-
counts, rebates, or reimbursements.
Outstanding Check-A check which has not been presented to the bank
for payment prior to the issuance of the monthly bank statement.
Outstanding Deposit: Deposit in Transit-A deposit which has been
transmitted to the bank and recorded in the depository ledger but
record of which does not reflect on the monthly bank statement;
usually a deposit made after banking hours on the last day of
the month or on the day the bank statement is usually prepared
by the bank.
Overdrawn-A situation in which an obligation for a student-body or-
ganization is made beyond the financial resources of the organiza-
tion; actual expenditures exceed actual receipts.
Perpetual Inventory-An inventory record which is initiated by a physi-
cal inventory and perpetuated by notations of receipts and with-
drawals, thereby reflecting a balance on hand for each item so
recorded.
Personal and Contracted Services-As used in this guide, services ren-
dered by personnel on a salary or contractual basis for the pro-
gram operation of an activity. It may include the full-time, part-
time, and prorated portions of salaries paid out of a school ac-
tivity fund for coaches, sponsors, trainers, and similar personnel,
and for other contracted services such as fees for providing en-
tertainment programs, producing publications, and photographing
individuals and groups.
Personnel, Clerical-Personnel occupying positions which have as their
major responsibilities the preparing, transferring, transcribing,
systematizing, or preserving of written communications and rec-
ords.
Personnel, Instructional-Those who render direct and personal serv-
ices which are in the nature of teaching, or the improvement of the
teaching-learning situation. Included here are consultants or su-
pervisors of instruction, principals, teachers, (including teachers of
the homebound), guidance personnel, librarians, and psychological
personnel. Attendance personnel, health personnel, and clerical per-
sonnel should not be included as instructional personnel.
Petty Cash-A sum of money, either in the form of currency or a spe-
cial bank deposit, set aside for the purpose of making change or
immediate payment of a comparatively small amount.
Posting-The act of transferring to an account in a ledger the detailed
or summarized data contained in the cash receipts book, check reg-
ister, journal voucher, or similar books or documents of original
entry.
Pre-Numbered-Documents, papers, tickets, or similar items which have
been consecutively numbered by the printer before delivery to the
school.
Prior Authorization-A written approval granting the authority to enter
into a contract, to obligate funds for a purchase, or to receive a
benefit before consummation of the act.
Purchase Order-A document which authorizes the delivery of specified
merchandise or the rendering of certain services and the making of
a charge for them.
Reconciliation of Bank Statement-A statement of the 'details of the
difference between the bank statement and the fund account record.
Thus, an analysis of outstanding checks, deposits in transit, and
bank charges not recorded in the school's fund record. Bank bal-
ances are usually adjusted by the amount of outstanding checks
which have not been presented to the bank for payment and de-
posits not credited by the bank, so the bank balance agrees with
the records.
Refund-(a) An amount paid back or credit allowed because of an
over-collection or on account of the return of an object sold; (b)
to pay back or allow credit for an amount because of an over-
collection or because of the return of an object sold; (c) to pro-
vide for the payment of a loan through cash or credit secured by
a new loan. See ABATEMENT.
Reimbursement-Cash or other assets received as a repayment of the
cost of work or services performed, or of other expenditures made
for or on behalf of another governmental unit or department, or for
an individual, firm, or corporation.
Repairs-The restoration of a given piece of equipment, of a given
building, or of grounds to original condition of completeness or
efficiency from a worn, damaged, or deteriorated condition.
Replacement of Equipment-A complete unit of equipment purchased
to take the place of another complete unit of equipment which is
to be sold, scrapped, or written off the record, and serving the
same purpose as the replaced unit in the same way.
Reports-Written statements of information which are made by a
person, unit, or organization for the use of some other person, unit,
or organization.
Requisition-A written demand or request, usually from one department
to the purchasing officer or to another department, for specified
articles or services.
School-A division of the school system consisting of a group of stu-
dents composed of one or more grade groups, organized as one
unit with one or more teachers to give instruction of a defined
type, and housed in a school plant of one or more buildings. More
than one school may be housed in one school plant, as is the
case when the elementary and secondary programs are housed
in the same school plant.
School Publications-Newspapers, magazines, yearbooks, handbooks, or
similar materials produced by students for circulation among stu-
dents and the public.
Student-body Activities-Direct and personal services for public school
students, such as interscholastic athletics, entertainments, publica-
tions, clubs, band, and orchestra, that are managed or operated
by the student body under the guidance and direction of adults,
and are not part of the regular instructional program.
Student Organization-Any group of students organized into a single
body for the purpose of pursuing common goals and objectives.
This includes the various types of student clubs and class organi-
zations which, with the proper approval by school authorities, are
managed and operated by students under the direction or super-
vision of adults.
Student Organization, Class or Grade-An organized group of students
who, by virtue of having completed a designated number of school
years, pursue common goals and objectives. Such organizations in-
clude the senior, junior, sophomore, and freshman classes, and
the elementary school grades. They are managed and operated
by students under the direction and supervision of instructional
personnel.
Student Organization, Club-An organized group of students with ba-
sically the same interests whose main objective is the furtherance
of these interests. Included are social, hobby, instructional, recrea-
tional, athletic, honor, dramatic, musical, and similar clubs or so-
cieties which are managed and operated by the student under the
direction and supervision of adults. All clubs must be approved
by the proper school authorities.
Subsidiary Activity Ledger-As used in this guide, a record of the fi-
nancial transactions of a given activity within a fund showing the
receipts, expenditures, and balance for the activity.
Supply-A material item of an expendable nature that is consumed,
worn out, or deteriorated in use; or one that loses its identity
through fabrication or incorporation into a different or more com-
plex unit or substance.
Supporting Papers-Primary records detailing the items listed on a
voucher, or similar document, which vouches for the accuracy and
authority of the voucher. Examples include purchase order form
duly signed, invoice with a receiving report, and check requisition.
Surety Bond-A written promise to pay damages or to indemnify against
losses caused by the party or parties named in the document,
through non-performance or through defalcation; for example, a
surety bond given by a contractor or by an official handling cash
or securities.
Teacher-A person employed to instruct pupils or students in a situa-
tion where the teacher and the pupils or students are in the pres-
ence of each other. This term is not applied to principals, librarians,
or other instructional personnel in this guide.
Trade Discount-An allowance usually varying in percentage with vol-
ume of transactions, made to those engaged in certain businesses
and allowable irrespective of the time when the account is paid.
The term should not be confused with "cash discount."
Transfer Voucher-A voucher authorizing posting adjustments and
transfers of cash or other resources between funds or accounts.
Trial Balance-A list of the balances of the accounts in a ledger kept
by double entry, with the debit and credit balances shown in sep-
arate columns. If the totals of the debit and credit columns are
equal or their net balance agrees with a controlling account, the
ledger from which the figures are taken is said to be "in balance."
Unit Cost-Expenditures for a function, activity, or service divided by
the total number of units for which the function, activity, or service
was provided.
Voided Check-A check which has been declared void. Usually a check
blank on which is made an error in writing such as an incorrect
amount, signature, or a discrepancy in the information included.
The check is usually made void by mutilating the signature space.
The check blank is retained.
Voucher-A document which authorizes the payment of money and
usually indicates the accounts to be charged.
Voucher System-A system which calls for the preparation of vouch-
ers for transactions involving payments and for the recording of
such vouchers in a special book or original entry known as a
voucher register in the order in which payment is approved.
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