Summary of Significant Revisions to the
Accounting Procedures Manual
For the Public Schools in the
State of West Virginia
Section
What It Was
What It Is
Why
1-3
Not Specifically Addressed
School personnel do not have statutory authority to enter into
contracts or obligate board funds.
Schools are not separate legal entities.
1-3
Not Specifically Addressed
School principal is not permitted to enter into contracts on the
school's behalf.
Schools are not separate legal entities.
Not Specifically Addressed
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.".
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.
Not Specifically Addressed
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.
Provides allowances for electronic signatures to accommodate
computer generated receipts, etc. Specifically disallows
signature stamps.
1-10
Not Specifically Addressed
Any funds deposited in an account with the county board's
FEIN must be accounted for in the school's general ledger and Clarifies that it is prohibited for any support organizations to
must follow the procedures in this manual.
use the FEIN of the county board.
1-10
Not Specifically Addressed
The CSBO must have signature authority on all individual
Ensures that schools have access to school funds in the event
school bank accounts, including C.D. and investment accounts. that the principal is absent for an extended period of time.
1-10
Not Specifically Addressed
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.
1-10
Not Specifically Addressed
The total of all cash accounts should equal the total of all
activity sub-accounts.
Ensures that all monies controlled by the school are accounted
for in the school's financial records.
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.
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.
1-5
1-9
1-12
Summary of Significant Revisions to the
Accounting Procedures Manual
For the Public Schools in the
State of West Virginia
Section
What It Was
What It Is
Why
1-14
Not Specifically Addressed
Before allowing charge privileges for meals provided by the
child nutrition program, an approved county board policy must
be in place regarding collections of outstanding balances for
meal charges.
Addresses the issue of delinquent accounts.
1-15
Not Specifically Addressed
Receipts must show the form of payment.
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.
1-16
Current stock of deposit slips may be used even if they do not
contain all of the required information.
New deposit slips must be ordered if current stock does not
contain all of the required information.
Expenditures for gifts, banquets or service awards for
employees prohibited.
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.
Not Specifically Addressed
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.
1-20
Not Specifically Addressed
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.
1-20
Not Specifically Addressed
Use a "verification" stamp and initials to prove that invoice was Provides additional guidance for proof of verification of
verified for accuracy.
invoices.
1-20
Not Specifically Addressed
Schools must pay all invoices in a timely manner.
1-18
1-19
1-19
Provides audit trail when reconciling receipts to deposits.
Eliminates allowance to use current stock. Same as check
stock. After several years, it is just time.
Establishes minimum guidelines for bid thresholds. County
policies could be more restrictive but not less restrictive than
State Board Policy 8200.
Establishes procedures for reserving vendor services for a
future date and time.
Establishes requirement for timely payment of invoices.
Summary of Significant Revisions to the
Accounting Procedures Manual
For the Public Schools in the
State of West Virginia
Section
What It Was
What It Is
Why
Not Specifically Addressed
Schools must send a completed W-9 form to the board office
for any vendors required to receive a 1099 form.
1-21
Not Specifically Addressed
Travel expenses submitted to the county level for
reimbursement require the signature of the principal to verify
the reimbursement was not already made at the school level.
Travel by the principal must be approved at the county level
Establishes additional internal controls to prevent
even if the travel expenses will be paid at the school.
unauthorized travel reimbursements and/or "double dipping".
1-21
Schools may pay reasonable and necessary travel expenses for Schools may pay reasonable and necessary travel expenses for Narrows the definition of chaperone to employee to eliminate
chaperones on school trips.
employees on school trips.
payment of parent expenses with school funds.
1-21
Not Specifically Addressed
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
school.
Authorizes use of prepaid credit cards as an alternative form of
payment to reduce the risk of lost or stolen cash.
1-21
Not Specifically Addressed
All credit cards must comply with State Board Policy 8200,
Purchasing Procedures for Local Educational Agencies.
Ensures compliance with State Board Policy. County policies
could be more restrictive but not less restrictive than State
Board Policy 8200.
1-22
Not Specifically Addressed
All independent contractors, including game officials must
complete a W-9 form.
Ensures that W-9 forms are completed for all 1099 vendors.
1-23
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.
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.
1-24
All checks must be posted to the General Journal in a timely
manner.
All checks must be posted to the General Journal daily.
Narrows the definition of timely to daily to provide specific
guidelines for posting checks.
1-25
Not Specifically Addressed
Provides detailed supporting documentation for tuition
Tuition must be remitted to the school board at least monthly receipts to ensure that all tuition is collected and remitted in a
and must be reconciled to course registration listing.
timely manner.
1-27
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.
If the school utilizes an electronic accounting system, this
process may be accomplished through journal entries.
1-20
Ensures that W-9 forms are completed for all 1099 vendors.
Provides allowances for journal entries to accommodate
electronic accounting systems.
Summary of Significant Revisions to the
Accounting Procedures Manual
For the Public Schools in the
State of West Virginia
Section
1-27
What It Was
Not Specifically Addressed
What It Is
Why
Any unclaimed property must be reported to the Unclaimed
Property Division of the State Treasurer's Office.
Ensures compliance with WV State requirements.
Changes signature from bank statement to bank reconciliation
to ensure that reconciliation is completed and reviewed. This
does not eliminate the requirement that the principal must
also sign and date the bank statement.
1-28
Bank statements must be signed by the preparer of the bank
reconciliation and the principal.
Bank reconciliations must be signed by the preparer and the
principal.
1-28
Banks must provide cancelled check images with both front
and back of the check.
Banks must be able to provide an image of the cancelled check Provides more latitude for check image requirements and
with both front and back upon request.
potentially reduces bank fees.
1-29
Not Specifically Addressed
Unused ticket stock for events must be kept in secure location Provides physical control over ticket stock to minimize
and issued to ticket collectors immediately prior to the event. fraudulent activity.
1-29
Not Specifically Addressed
No individual should be used to collect tickets more than five
times per year.
1-29
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.
1-29
Not Specifically Addressed
A ticket log must be maintained to account for all ticket stock
used by the school.
Not Specifically Addressed
Although amounts of up to $500 per gate are allowed for
starting cash, any cash in excess of $500 in total must be
Cash in the change drawer in excess of $500 must be
deposited immediately after the event to reduce the risk of
deposited in the school's depository account after each event. loss or theft.
Maximum amount of starting cash per event is $500.
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.
Not Specifically Addressed
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.
1-30
1-30
1-33
Provides rotation of responsibilities to reduce the risk of
collusion.
Establishes additional internal controls over ticket stock.
Increases total starting cash for events when multiple gates are
used.
Summary of Significant Revisions to the
Accounting Procedures Manual
For the Public Schools in the
State of West Virginia
Section
What It Was
What It Is
Why
1-34
Sample profit and loss forms provided
Alternate profit and loss forms allowed as long as the
information is substantially the same as the sample form.
Provides flexibility to use software generated or vendor
provided forms to reduce manual and/or double entries.
1-34
Not Specifically Addressed
All profit and loss forms must be signed by preparer and school
principal.
Provides accountability for fundraisers.
1-34
Not Specifically Addressed
Fund raiser defined as a school activity which will potentially
generate a profit for the school or a specific school group or
club.
Provides specific definition of "fundraiser" and gives examples
to ensure that all fundraising activities are properly accounted
for.
1-34
Not Specifically Addressed
Fund raising activities must be covered by liability insurance.
Minimizes school's liability in the event of an accident or injury
during a fundraiser.
1-35
Periodic profit and loss statements
Profit and loss statements for concession sales at a minimum
must be prepared at the end of the activity or the end of the
semester.
Provides specific definition of "periodic" to improve
accountability for concession sales.
1-36
Not Specifically Addressed
Vending machine items must comply with State Board Policies
and federal regulations governing nutritional guidelines.
Ensures compliance with federal regulations.
1-36
75% of profits from sale of soft drinks and healthy beverages in Expands the scope of beverage sales in vending machines to
75% of profits from sale of soft drinks in high schools allocated schools, regardless of the location of the machine, allocated by include healthy beverages as well as soft drinks for 75% profit
by faculty senate and 25% allocated by principal.
faculty senate and 25% allocated by principal.
allocation by the faculty senate.
1-37
Not Specifically Addressed
Items purchased with faculty senate funds are the property of
the school to which the faculty senate funds were originally
allotted. Such items are not to follow an individual classroom Provides guidance for custody of assets purchased with faculty
teacher in the event that he/she transfers to another school. senate funds.
1-37
$50 of the total $200 Faculty Senate allowance is allocated to
each individual classroom teacher.
$100 of the total $200 Faculty Senate allowance is allocated to
each individual classroom teacher.
Updates amount allocated to each teacher.
Not Specifically Addressed
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
balances.
1-37
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.
Summary of Significant Revisions to the
Accounting Procedures Manual
For the Public Schools in the
State of West Virginia
Section
1-37
What It Was
What It Is
Why
Faculty senate funds issued to teachers by check at the
Faculty senate funds issued to teachers by check at the
Changes the deadline from the end of the year to a deadline
beginning of the year must be refunded if itemized receipts are beginning of the year must be refunded if itemized receipts are established by the county to improve the efficiency of year end
not submitted by the deadline established by the county.
not submitted.
procedures.
Submit monthly financial statement along with balance page of
all bank, CD and investment account statements to board
Provides additional supporting documentation for monthly
office.
financial statements.
1-41
Submit monthly financial statement to board office.
1-42
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.
Provides allowances for alternate forms to accommodate
electronic accounting systems.
1-43
Annual examinations for schools that receive $25,000 in
federal funds must be conducted in accordance with OMB
Circular A-128.
Annual examinations of school financial records must be
conducted in accordance with applicable federal guidelines.
Ensures compliance with current federal requirements.
1-43
Annual examinations of school financial records are to be
completed within twelve months after the end of the fiscal
year.
Annual examinations of school financial records are to be
completed and reports issued within nine months after the end
of the fiscal year. The exception is that for counties that have
twenty or more schools, the examinations must be completed
and reports issued within 12 months after the end of the fiscal Ensures that the annual examination of school financial records
are completed within a timely manner.
year.
1-43
Annual examination of school financial records may be
conducted by personnel employed by the county board of
education, by a certified public accountant, or by the
Department of Tax and Revenue, Chief Inspector Division.
Annual examination of school financial records may be
conducted by the CSBO, or his/her staff under the supervision
of the CSBO, by a certified public accountant, or by the State
More specifically defines the county BOE staff allowed to
Auditor's Office, Chief Inspector Division.
conduct annual examinations.
Not Specifically Addressed
Volunteers must be acting on behalf of the school when
participating in fundraising activities in order to be covered by
the school board's liability insurance. Monies for fundraising
activities undertaken on behalf of the school must be
deposited into the depository account of the school.
Clarifies that volunteers for fundraising activities are only
covered by the school board's liability insurance if the activity is
conducted on behalf of the school - not on behalf of a school
support organization that has a separate FEIN and bank
account.
Not Specifically Addressed
The authority to examine the financial records of any school
support organization collecting money in the name of the
school may be delegated by the board of education to the
superintendent or the CSBO.
Provides procedure for the board of education to delegate the
authority to examine school support organization records to
specific board employees.
2-1
2-16