ACCOUNTING
PROCEDURES
MANUAL
presented by:
Office of School Finance
WV Department of Education
WVDE-OSF
Presenter
Susan Smith, CPA, Coordinator
 susmith@access.k12.wv.us
 304-558-6300 ext 3
 The manual can be found online at
http://wvde.state.wv.us/finance/
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WVDE-OSF
Accounting Records
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Pre-numbered receipt forms
Transaction journal (receipts and
disbursements)
Requisitions and pre-numbered purchase
orders
Bank checkbook
Bank deposit slips
Monthly bank reconciliations and financial
statements
Annual financial statements
WVDE-OSF
Principal’s Review
The principal must review the monthly
financial statement and sign it
 By reviewing it, he/she can assess the
financial situation at the school
quickly
– Journals are up-to-date and
balanced
– Cash has been reconciled
– The school isWVDE-OSF
not in a deficit
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Receipts
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Pre-numbered receipts MUST be issued for all
collections at the time moneys are collected with
original provided to individual from whom moneys
are received and a copy retained
– Original recording of transaction
– Protects both individuals
– A single receipt with a supporting list may be
used when collecting moneys from a group
– Voided receipts – mark void and retain both
copies
– Receipts must be posted at least weekly
WVDE-OSF
WVDE-OSF
Vending Machines
Recommendation – let the vendor
stock
 If not, collections are to be receipted
and deposited into school account
 Prepare a profit/loss statement
periodically (p. 81 & p. 83)
 Remit consumer sales tax
 75% of soft drink sales go to faculty
senate
WVDE-OSF
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Gate Receipts
Pre-numbered tickets must be used if
an admission fee is charged
 Two individuals should be used
(sell/take up tickets)
 Tickets are to be torn in half and one
half given back to the patron
 Ticket reconciliation reports must be
completed for each event
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Fund-Raisers
Receipt and disbursement procedures
apply
 Profit/Loss Statement must be
completed for each fund-raiser
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Child Nutrition Collections
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Receipt written to each teacher collecting
money at the time money is remitted – one
for breakfast collections and one for lunch
collections
If moneys are collected from parents,
write receipt or use cash collection form
Ensure Summary Meal Report matches the
collection amounts for each meal
Recommendation - centralized billing
WVDE-OSF
Deposits
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Prepare in duplicate & retain a copy
No cash disbursements or personal checks
cashed from collections
Must deposit at $500 or weekly
Checks must be listed separately
Beginning and ending receipt
numbers must be shown
WVDE-OSF
Purchase Orders
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Purchase order must be completed PRIOR
to obligation of the funds
Pre-numbered, duplicate
Retain a copy
No purchases may be made from a fund or
account in excess of funds currently
available
Signed by the Principal or designee
Does not need to be the exact amount of
the purchase
WVDE-OSF
Disbursements
All disbursements must be made by
check
 All disbursements must be supported
by an invoice or travel expense report
 All checks require two signatures
 Never pre-sign a blank check
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WVDE-OSF
Personal Services
All payments to individuals must be
made through payroll process
 UNLESS clearly shown an
independent contractor
 ONLY exception is athletic officials
 Report all payments for personal
services to central board office each
year for 1099 reporting
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WVDE-OSF
Other Cash
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Petty Cash
– Maximum is $50
– Don’t cash personal checks
– Receipts + cash must always equal the total
amount authorized
– Replenish by a check made out to the principal
Starting Cash
– Maximum is $500
– Don’t cash personal checks
– Amount of cash must always equal the total
authorized
– Deposit back into bank when not used
WVDE-OSF
Authorized Expenditures
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All moneys are considered to be
quasi-public funds and are to be
expended for the benefit of the
students at the school
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Unauthorized Expenditures
Contributions to charitable
organizations are prohibited unless a
fund-raiser is conducted specifically
for that purpose
 Purchase of food and drink for
meetings
 Purchase of service awards for
employees
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WVDE-OSF
Authorized/Unauthorized
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Appendix C provides a list of
expenditures specifically authorized
or unauthorized by the State
Attorney General opinions or State
Superintendent of Schools
interpretations
WVDE-OSF
Bank Statements
Principal review the unopened bank
statement for irregularities
 Reconciliation must be performed as
soon as possible
 Reconciliation must be signed by
preparer and principal
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WVDE-OSF
SSAC Tournaments
Deposit all proceeds into the school
account
 Establish a sub-account to track
receipts and disbursements
 All payments made for personal
services must be through payroll
process
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WVDE-OSF
School Support Organizations
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Procedures are to be established by
each county board. At a minimum
each one:
– That collects funds in the name of
the school must be approved by the
board in advance
– Must have the approval of the
principal for each fund-raiser that
is conducted
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– Must provide an
annual financial
School Support Organizations
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Each is to have its own business
registration certificate and FEIN
– Be officially organized with a set of
published by-laws
– Prepare and make available written
minutes of each meeting
– Maintain a transaction journal of all
receipts and disbursements
– Establish proper accounting procedures
WVDE-OSF
School Support Organizations
If an organization does not wish to
obtain it’s own FEIN, funds may be
deposited into the school’s bank
account
 Follow all school purchasing
procedures
 Including unallowed expenditures
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WVDE-OSF
School Support Organizations
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Boards have the authority to examine
the financial records of all
disbursements of all funds, including
the operation of concession stands,
fund raisers and gate collections
WVDE-OSF
Faculty Senate
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Each teacher is entitled to a $50 allotment
– Check or allocation
– Sales tax is allowed
– No purchase orders required
Additional monies up to a total of $200 could be
allotted to each teacher. Amounts above the $50:
– Allocation method only
– No sales tax can be paid
– Approved purchase order prior to obligating the
funds is required
– Monies not expended by year end go back into
faculty senate pool
WVDE-OSF
Faculty Senate (continued)
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A budget must be adopted (see sample
form)
Individual balances could be restored from
end of prior year with majority vote
Faculty senate checks must be signed by
faculty senate designee and principal (or
his designee)
Allotments for teachers who transfer stay
with the original faculty senate
Monthly bank reconciliations and financial
statements are required
WVDE-OSF
County Policies
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BOE must include in local policy:
– Number of funds to be maintained at the
schools
– Whether high schools may sell soft
drinks during school hours (except at
meal service times)
– Whether schools may obtain a
purchasing card
– Whether schools may have petty cash,
and the maximum amount (up to $50)
WVDE-OSF
County Policies (continued)
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– Maximum amount of starting cash
authorized for gate collections (up to
$500)
– Procedures by which school support
organizations are to operate
County or school may establish procedures
for:
– Concession sales
– Vending machines
WVDE-OSF
Recommendations
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Use a computerized accounting system
– More efficient
– Reduces chance for error
– Standardizes the accounting function at
all schools
Vending machines stocked by vendor
Disallow the payment for merchandise at
time of delivery
Centralized billing for Child Nutrition
Program
WVDE-OSF
Questions
WVDE-OSF