Summary of Proposed Revisions to the
Accounting Procedures Manual
For the Public Schools in the
State of West Virginia
Section
What It Was
1-3
Not Specifically Addressed
1-4
Not Specifically Addressed
1-5
Not Specifically Addressed
1-9
Not Specifically Addressed
What It Is
Why
School personnel do not have statutory authority to enter into
contracts or obligate board funds.
Schools are not separate legal entities.
School principal is not permitted to enter into contracts on the
school's behalf.
Schools are not separate legal entities.
Defines sub account as "a group or particular activity with a
claim against the assets of the school without regard to the
specific asset (checking, savings, certificate of deposit, (C.D.),
etc.".
Any funds deposited in an account with the county board's
FEIN must be accounted for in the school's general ledger and
must follow the procedures in this manual.
Signatures are generally required to be manual signatures.
Electronic signatures are acceptable if the signature is
password protected. Signature stamps or pre-printed are not
allowed.
1-9 &
1-37
Not Specifically Addressed
1-9
If current check stock does not contain the pre-printed name
of the school, the fund, the school address, the check number,
and two blank signature spaces, current stocks of checks may New check stock must be obtained if current check stock does
be used until exhausted.
not meet the requirements.
1-9
Not Specifically Addressed
1-9
Not Specifically Addressed
Expand on the definition of sub account to distinguish the
difference between funds and sub accounts. Clarifies that it is
not necessary to determine which asset(s) make up each sub
account, but that total sub accounts agree to total assets.
Clarifies that it is prohibited for any support organizations to
use the FEIN of the county board.
Provides allowances for electronic signatures to accommodate
computer generated receipts, etc. Specifically disallows
signature stamps.
Eliminates allowance to use current stock. These requirements
and the allowance to use current check stock have existed for
several years such that if any "current" check stock does still
exist, it is so old that the ink is probably faded.
Limits checking accounts to provide better controls over
unauthorized transactions. Provides allowance for Pell Grant
Only one checking account per fund with the exception of Pell account to meet specific Pell Grant disbursement
Grant accounts for vocational centers.
requirements.
The total of all cash accounts should equal the total of all
Ensures that all monies controlled by the school are accounted
activity sub-accounts.
for in the school's financial records.
1-10
Not Specifically Addressed
1-11
Periodic profit and loss statements
1-11
Sample profit and loss forms provided
1-11
Not Specifically Addressed
Any checks collected by the school must be made payable to
the school except for fundraisers conducted by third party
vendors providing a commission to the school.
Profit and loss statements at a minimum must be prepared at
the end of the activity or the end of the semester.
Alternate profit and loss forms allowed as long as the
information is substantially the same as the sample form.
All profit and loss forms must be signed by preparer and school
principal.
Eliminates the risks of accepting third party checks. Reduces
the instances of fundraisers conducted in the school's name
that are not accounted for in the school's financial records.
Provides specific definition of "periodic" to improve
accountability for concession sales.
Provides flexibility to use software generated or vendor
provided forms to reduce manual and/or double entries.
1-12
Not Specifically Addressed
Vending machine items must comply with State Board Policies
and federal regulations governing nutritional guidelines.
Ensures compliance with federal regulations.
Provides accountability for fundraisers.
Summary of Proposed Revisions to the
Accounting Procedures Manual
For the Public Schools in the
State of West Virginia
Section
What It Was
What It Is
1-13
75% of profits from sale of soft drinks and healthy beverages in
75% of profits from sale of soft drinks in high schools allocated high schools, regardless of the location of the machine,
by faculty senate and 25% allocated by principal.
allocated by faculty senate and 25% allocated by principal.
Fund raiser defined as a school activity which will potentially
generate a profit for the school or a specific school group or
Not Specifically Addressed
club.
1-13
Not Specifically Addressed
1-14
Not Specifically Addressed
1-14
1-14
1-15
Why
Fund raising activities must be covered by liability insurance.
Expands the scope of beverage sales in vending machines to
include healthy beverages as well as soft drinks for 75% profit
allocation by the faculty senate.
Provides specific definition of "fundraiser" and gives examples
to ensure that all fundraising activities are properly accounted
for.
Minimizes school's liability in the event of an accident or injury
during a fundraiser.
Not Specifically Addressed
Unused ticket stock for events must be kept in secure location
and issued to ticket collectors immediately prior to the event.
No individual should be used to collect tickets more than five
times per year.
Provides physical control over ticket stock to minimize
fraudulent activity.
Provides rotation of responsibilities to reduce the risk of
collusion.
Not Specifically Addressed
Not Specifically Addressed
Cash disbursements not allowed from event collections. Event Maintains separate accountability for ticket sales. Eliminates
proceeds must be deposited intact into the school account.
payment of wages in cash.
Receipts must show the form of payment.
Provides audit trail when reconciling receipts to deposits.
1-15
Not Specifically Addressed
Receipts must have a valid signature. Electronic signatures are
acceptable only if the signature is password protected.
Signature stamps and pre-printed signatures are not allowed. Establishes responsibility for cash receipts.
1-15
1-16
Not Specifically Addressed
Current stock of deposit slips may be used even if they do not
contain all of the required information.
1-18
Not Specifically Addressed
Tuition must be remitted to the school board at least semiannually and must be reconciled to course registration listing.
New deposit slips must be ordered if current stock does not
contain all of the required information.
Schools are required to follow the bid thresholds outlined in
State Board Policy 8200, Purchasing Procedures for Local
Educational Agencies.
Not Specifically Addressed
Authorizes use of purchasing cards as an alternative form of
Purchasing Cards are permitted by State Board Policy 8200 and payment. County policies could be more restrictive but not
all requirements for use are outlined in the policy.
less restrictive than State Board Policy 8200.
Expenditures for gifts, banquets or service awards for
employees prohibited.
Schools may not make charitable contributions unless a
fundraiser is conducted specifically for that purpose.
WV Code section 18-5-13 allows expenditures for student,
parent, teacher and community recognition programs. Funds
must be raised specifically for that purpose, publicized as such, Provides means to recognize parents, teachers, and
and accounted for in a separate account in the General Fund. community members as well as students.
Eliminates any actual or implied provision to make charitable
Not Specifically Addressed
contributions not supported by WV Code.
1-12
1-18
1-19
1-19
Provides detailed supporting documentation for tuition
receipts to ensure that all tuition is collected and remitted.
Eliminates allowance to use current stock. Same as check
stock. After several years, it's just time.
Establishes minimum guidelines for bid thresholds. County
policies could be more restrictive but not less restrictive than
State Board Policy 8200.
Summary of Proposed Revisions to the
Accounting Procedures Manual
For the Public Schools in the
State of West Virginia
Section
What It Was
1-20
Not Specifically Addressed
1-21
Not Specifically Addressed
1-21
Not Specifically Addressed
1-21
Not Specifically Addressed
What It Is
Remove and destroy the signature on a voided check prior to
retaining the check.
Invoices must include address and phone number of vendor. If
the vendor is on an approved board office vendor list, the
phone number is not required on the invoice.
Schools are permitted to make "deposit" payment for items
such as charter buses or destinations for field trips, etc.
Deposit payments require written documentation from the
vendor indicating the amount of the deposit and terms.
Use a "verification" stamp and initials to prove that invoice was
verified for accuracy.
1-21
Not Specifically Addressed
Schools must pay all invoices in a timely manner.
1-22
Schools must send a completed W-9 form to the board office
Not Specifically Addressed
for any vendors required to receive a 1099 form.
Schools may pay reasonable and necessary travel expenses for Schools may pay reasonable and necessary travel expenses for
chaperones on school trips.
employees on school trips.
If a staff member purchases a prepaid credit card in lieu of
carrying cash on a school trip, all receipts and documentation
must still be maintained and unused cash returned to the
Not Specifically Addressed
school.
1-22
Not Specifically Addressed
1-23
Not Specifically Addressed
1-25
1-27
Maximum amount of starting cash per event is $500.
All checks must be posted to the General Journal in a timely
manner.
If a check is cancelled in a subsequent year from which it was
issued, a receipt must be written for the amount of the check
and posted to the transaction journal.
1-27
Not Specifically Addressed
1-28
Not Specifically Addressed
1-21
1-22
1-26
All credit cards must comply with State Board Policy 8200,
Purchasing Procedures for Local Educational Agencies.
All independent contractors, including game officials must
complete a W-9 form.
Maximum amount of starting cash per event is $500 per gate.
Anything above this amount must be approved in writing by
the county's chief school business official.
All checks must be posted to the General Journal daily.
If the school utilizes an electronic accounting system, this
process may be accomplished through journal entries.
Any unclaimed property must be reported to the Unclaimed
Property Division of the State Treasurer's Office.
The total of all cash and investment accounts should equal the
total of all activities in the sub-accounts.
Why
Provides additional security measure for checking account(s).
Ensures that all vendor contact information is provided.
Establishes procedures for reserving vendor services for a
future date and time.
Provides additional guidance for proof of verification of
invoices.
Establishes requirement for timely payment of invoices.
Ensures that W-9 forms are completed for all 1099 vendors.
Narrows the definition of chaperone to employee to eliminate
payment of parent expenses with school funds.
Authorizes use of prepaid credit cards as an alternative form of
payment to reduce the risk of lost or stolen cash.
Ensures compliance with State Board Policy. County policies
could be more restrictive but not less restrictive than State
Board Policy 8200.
Ensures that W-9 forms are completed for all 1099 vendors.
Increases total starting cash for events when multiple gates are
used.
Narrows the definition of timely to daily to provide specific
guidelines for posting checks.
Provides allowances for journal entries to accommodate
electronic accounting systems.
Ensures compliance with WV State requirements.
Ensures that all school monies are accounted for the school's
financial records.
Summary of Proposed Revisions to the
Accounting Procedures Manual
For the Public Schools in the
State of West Virginia
Section
1-28
1-28
1-29
1-30
1-35
2-8
3-2
3-2
3-2
What It Was
What It Is
Bank statements must be signed by the preparer of the bank
reconciliation and the principal.
Banks must provide cancelled check images with both front
and back of the check.
Why
Bank reconciliations must be signed by the preparer and the
principal.
Banks must be able to provide an image of the cancelled check
with both front and back upon request.
Submit monthly financial statement along with balance page of
all bank, CD and investment account statements to board
Submit monthly financial statement to board office.
office.
Alternate form allowable for annual financial statements so
long as the information contained is substantially the same as
Submit annual financial statement on form provided by WVDE. the WVDE form.
Annual examinations for schools that receive $25,000 in
federal funds must be conducted in accordance with OMB
Annual examinations of school financial records must be
Circular A-128.
conducted in accordance with applicable federal guidelines.
Employees should execute wage garnishment agreement prior
to being allowed to charge meals provided by the child
Not Specifically Addressed
nutrition program.
$50 of the total $200 Faculty Senate allowance is allocated to $100 of the total $200 Faculty Senate allowance is allocated to
each individual classroom teacher.
each individual classroom teacher.
Changes signature from bank statement to bank reconciliation
to ensure that reconciliation is completed and reviewed.
Provides more latitude for check image requirements and
potentially reduces bank fees.
If faculty senate wishes to allow individual teachers to carry
over balances, a vote must be taken at the beginning of the
new school year and recorded in the minutes to reestablish the
Not Specifically Addressed
balances.
Faculty senate funds issued to teachers by check at the
Faculty senate funds issued to teachers by check at the
beginning of the year must be refunded if itemized receipts are beginning of the year must be refunded if itemized receipts are
not submitted.
not submitted by the deadline established by the county.
Provides procedure to reestablish individual teacher balances
in faculty senate. Must be voted on at the beginning of the
new year rather than the end of the old year because of
potential membership changes.
Changes the deadline from the end of the year to a deadline
established by the county to improve the efficiency of year end
procedures.
New
Section Not Specifically Addressed
Provides additional supporting documentation for monthly
financial statements.
Provides allowances for alternate forms to accommodate
electronic accounting systems.
Ensures compliance with current federal requirements.
Authorizes garnishment of employee wages if they become
delinquent in payment.
Updates amount allocated to each teacher.
When a sub-account for a particular class of students is
established in the General Fund, the remaining balance in the
sub-account when the class is no longer at the school must be
accounted for in one of three ways: 1. Use for general
operations of the school 2. Use for specific purpose at the
Provides specific guidance on accounting for funds allocated to
school 3. Transfer to a subsequent class of students.
a specific class of students.