Business Office Procedures and Internal Controls

Table of Contents

INTERNAL CONTROL SYSTEM
Control Environment
Accounting System
Control Procedures
Monitoring System

GENERAL INFORMATION
Organizational Chart
Retention of Records
Credit Card Policy F150

SCHOOLS ACCOUNTING ACTIVITIES CHART
Official Bonds
Internal Controls Training
Inventory and Asset Management
State and Federal Programs
Federal Cash and Financial Management
Reimbursement Payment Method
Extra-Curricular Accounting
School Nutrition Program

INTERNAL CONTROL SYSTEM

The Corporation’s internal control system comprises the policies and procedures established to provide reasonable assurance that specific Corporation objectives will be achieved.
Accounting responsibilities, procedures, and policies should be implemented and designed to prevent:
1. Misstatement of account balances because errors go undetected (both intentional and unintentional); and
2. Misappropriation of cash and other resources of the School Corporation.

These objectives are pursued through a sound internal control structure which is carefully established and followed by business office personnel as well as all other applicable personnel. Such an internal control structure can also tend to promote operational efficiency. From a financial statement perspective, the School Corporation’s internal control structure consists of the control environment, the accounting system, control procedures and internal control systems. This internal control structure will ensure that the five requirements are met — Control Environment, Risk Assessment, Control Activities, Information and Communication and Monitoring Activities.

These elements of the internal control structure are as follows:

Control Environment

The control environment establishes the integrity and ethical values of the school corporation as established by the board and administration. These include the standards, process and structures and the expectations for accountability and leadership. There are five principles of intention control specific to the control environment:

1. The Board of Trustees and administration demonstrate a commitment to integrity and ethical values.
2. The Board of Trustees oversees the Corporation’s internal control system.
3. The administration establishes an organizational structure, assigns responsibility, and delegates authority to achieve the Corporation’s objectives.
4. The administration demonstrates a commitment to attract, develop and retain competent individuals.
5. The administration evaluates performance and holds individuals accountable for their internal control responsibilities.

The control environment reflects the overall attitude, awareness, and action of the Board of Trustees, Administration, and others concerning the importance of control and its emphasis in the Corporation.

Risk Assessment

Risk assessment is the process used to identify and assess internal and external risks to achievement of objectives and the risk tolerances associated with those risks. There are four principles that apply to risk assessment:
1. The administration defines objectives clearly to enable the identification of risks and to define risk tolerances.
2. The administration identifies, analyzes, and responds to risk related to achieving the defined objectives.
3. The administration considers the potential for fraud when identifying, analyzing, and responding to risks.
4. The administration identifies, analyzes, and responds to significant changes that could impact the internal control system.

Control Activities

Control activities are the methods used to detect, prevent or reduce identified risks. Detection activities identify unfavorable events in a timely manner where prevention activities are intended to deter the occurrence of an unfavorable event. Examples of these activities include reconciliation, authorization, approval process, performance review, and verification process. The key concept of control activities is segregation of duties – separating the ability to record, authority and approve transactions limits the risk of error or fraud. If total segregation of duties is not practical (with a school’s extracurricular accounts for example), compensating activities, such as an additional level or review or period review of transactions, should be utilized.

There are three specific principles which apply to control activities:
1. The administration designs control activities to achieve objectives and respond to risks.
2. The administration designs the Corporation’s information system and related control activities to achieve objectives and respond to risks.
3. The administration implements control activities through policies.

Information and Communication

Internal and external communication are necessary to support the other components of internal control. The three principles that pertain to information and communication include:
1. The administration uses quality information to achieve the Corporation’s objectives.
2. The administration internally communicates the necessary quality information to achieve the Corporation’s objectives.
3. The administration externally communicates the necessary quality information to achieve the Corporation’s objectives.

Monitoring Activities

Evaluations are conducted to determine whether the five components of internal control are functioning. There are two principles of internal control related to this factor, which include:
1. The administration establishes and operates monitoring activities to monitor the internal control system and evaluate the results.
2. The administration remediates identified internal control deficiencies on a timely basis.

Retention of Records

Please refer to the following link for the most recent records retention schedule revised April 26, 2023.
• http://www.in.gov/iara/files/schoolretentionschedule.pdf

Credit Card
F150 – USE OF CREDIT CARDS POLICY

The School Board recognizes the value of an efficient method of payment and recordkeeping for certain expenses.
The Board, therefore, authorizes the use of West Lafayette Community School Corporation credit cards.
The Superintendent shall develop administrative guidelines that specify those authorized to use credit cards, the types of expense which can be paid by credit card, and their proper supervision and use.
A log will be kept which includes the names of the individuals using the cards, their position,
and estimated amounts to be charged.
Credit cards are not to be used to bypass the accounting system of the School Corporation. In addition, credit cards are not to be used for personal expenses not related to Corporation activities.
The monthly credit card statement, if available, will be placed in the monthly Board packet for review.
Procedures for payment of expenses charged to credit cards must be according per Indiana Code for the payment of claims.

School Accounting Activities

Official Bonds

Whereas, IC 20-26-4-5 requires for each school year commencing July 1, the treasurer of each governing body and the governing body’s School Corporation and a deputy treasurer, if so appointed; and any individual whose official duties include receiving, processing, depositing, disbursing, or otherwise having access to funds that belong to a school corporation or the governing body of a school corporation; shall give a bond for the faithful performance of the treasurer’s, deputy treasurer’s, or individual’s duties written by an insurance company licensed to do business in Indiana, in an amount determined by the governing body. The treasurer shall be responsible under the treasurer’s bond for the acts of a deputy treasurer appointed as provided in section 1 of this chapter.

Bond approval is completed each year during the January Board of Finance meeting. We have bonds for the positions and amounts as follows:

Corporation Treasurer - $100,000
Corporation Deputy Treasurer - $100,000
Extra-Curricular Treasurer - $25,000
Athletic Secretary - $25,000
Food Service Admin Asst - $5,000
Building-Level ECA Secretary - $5,000

PROCEDURE FOR RECEIVING AND PAYING FOR GOODS AND SERVICES

A. Receiving Goods
Upon satisfactory receipt of purchased merchandise or services, the claim originator shall return the blue copy of the purchase order verifying satisfactory receipt of the material or services and return his/her purchase order copy to the treasurer via the principal or supervisor or email the treasurer/deputy treasurer of receipt of the goods. Following this, the treasurer shall recommend the claim to the Board for payment.
B. Paying for Goods and Services
At each regular meeting, the treasurer shall present a list of claims for Board approval together with the actual claims for Board examination if so requested. The claim list will be arranged to show payee, amount of payment, total by fund, and a space for the Board members’ authorization for payment.

All claims to be approved for payment by the Board at its monthly meeting must be received by the treasurer not later than eight days prior to the board meeting.

In the event of an emergency or in keeping with good business practice, claims may be paid by the treasurer in advance of Board approval for services and materials duly requisitioned, budgeted, or contracted. Claims paid in advance will be presented on the claim list for approval at the next regular Board meeting.

As a regular function of the corporation business office, the following time sensitive items can be paid in advance of formal board approval. These items will include charge card balances that otherwise would add late fees; pre-registration for conferences, workshops, and lodging; additional costs related to city crossing guards; and any other corporation billing that requires prepayment or would incur an additional fee if not paid on time.

Internal Controls Training

Indiana Code 5-11-1-27 requires Internal Control Policy Training

After June 30, 2016, IC 5-11-1-27(g) provides that the legislative body of each political subdivision must adopt the minimum internal control standards as defined by the State Board of Accounts. The legislative body must also ensure that personnel receive training concerning the internal control standards and procedures adopted by the political subdivision.

The fiscal officer must certify that the minimum internal control standards have been adopted and that personnel who are not otherwise on leave status have received training regarding these standards and procedures. This certification will be filed as part of the Annual Financial Report submission in Gateway.

In addition, a certification for each elected official, appointee, and employee should be signed as evidence of their individual training or held in a digital training module. A sample certification form is provided below and can also be found in the Appendix in the Uniform Internal Control Standards for Indiana Political Subdivisions manual. These certifications are to be maintained by the political subdivision. Certification Form

Uniform Internal Control Standards for Indiana Political Subdivisions

Indiana Code 5-11-1-27(e) provides that through the compliance guidelines authorized under IC 5-11-1-24 the State Board of Accounts (SBOA) shall define the acceptable minimum level of internal control standards for internal control systems of political subdivisions, including the following: (1) Control Environment, (2) Risk Assessment, (3) Control Activities, (4) Information and Communication, and (5) Monitoring.

In response, the SBOA developed the Uniform Internal Control Standards for Indiana Political Subdivisions manual, which contains the acceptable minimum level of internal control standards that a political subdivision is expected to maintain.

Annual Training Calendar to include but not limited to topics such as:

• Payroll and Human Resource Compliance Issues
• Audit Requirements
• Legal Changes
• State and Federal Grants Management
• Financial Software
• Travel Guidelines
• Budget Development

All training groups will receive instruction on the generalized topics, including the Internal Control Standards, their five components and the seventeen principles, the Budget Development Process, Audit Requirements, and Legal Changes. The State Board of Accounts has issued a power point presentation called the Uniform Internal Control Standards for Indiana Political Subdivisions. This document can be accessed with the link listed above. The training begins on Section 2, page 25. Training is an ongoing process and any changes will be shared as they occur.

Inventory and Asset Management

An up-to-date inventory shall be kept in the Business Office. Qualifying items will be added to the inventory as they are purchased. The inventory will be officially updated every other year on the audit cycle working with a vendor.

An equipment inventory will be maintained on all computers and capital outlay items exceeding $10,000.00 in value. The inventory will serve the functions of both control and conservation.

The technology coordinator shall be responsible for assuring the maintenance of a comprehensive inventory of administrative and instructional computer hardware and software.

The coordinator should work with the corporation technology department to develop procedures to be followed in maintaining such an inventory.

The librarian for each building shall be responsible for keeping a complete inventory of all audio-visual items in his/her building and providing the inventory information to the building principal, or by using electronic entry.

The running inventory shall be maintained on 1) building and grounds equipment; 2) furniture; 3) administrative equipment; 4) educational equipment; 5) vehicles; and 6) textbooks and supplementary books.

The maintenance supervisor and business manager shall be responsible for inventories relative to buildings and grounds equipment and vehicles. The building principal shall be responsible for the inventories relative to furniture, administrative equipment, educational equipment, and textbooks and supplementary books under the capitalization threshold.

State and Federal Programs

The district receives a number of state and federal grants which support various activities of the district. Those include the following:

• Title I, II, III, VI
• IDEA: Section 611 & 619 (Federal Special Education Grant)
• Perkins Federal Grant
• Secured School Safety
• Career and Technical Education
• High Ability
• Non-English Speaking Grant (NESP)
• Any Other State or Federal Grants

All school employees who participate in grant awards are expected to comply with the following standards:

1. Follow the grant guidelines as listed on the Grant Award Letter. Verify reporting requirements, amendments, and deadlines are followed.

2. Verify if the grant is reimbursable after expenses incurred or if the grant is payable via cash request by the submission of the proper request form.

3. Be sure to keep documentation on all expenditures and personnel transactions.

4. As with all grants, follow the five (5) internal controls cited in the Uniform Internal Control Standards for Indiana Political Subdivisions which include the following:

a. Documented segregation of duties
b. For State and Federal reports, reimbursement requests, and bank reconciliations, for example, the SBOA will be looking to see if the document(s) have been reviewed (initialed) by a second party, other than the preparer.
c. Verification that all expenditures are allowable under the grant guidelines. All other local grants will follow the grant award guidelines.

Federal Cash and Financial Management

The district’s financial management system and records will be sufficient for preparing required reports and for tracing expenditures to a level that establishes funds have been used according to federal statutes, regulations, and the terms and conditions of the federal award. This is in addition to maintaining a system of funds and accounts in accordance with state law and the accounting manual.

The district’s financial management system will:

• Identify all federal awards received and expended, including specific information pertaining to the award: federal program name; CFDA title and number; identification number and year; and name of federal and any pass-through agency.
• Provide for accurate, current, and complete disclosure of the results of each federal award in accordance with reporting requirements.
• Include records and supporting documentation that identify the source and application of funds for federally funded activities, including authorizations, obligations, unobligated balances, expenditures, assets, income and interest.
• Enable the district to maintain effective internal controls to ensure accountability and proper safeguarding and use of all funds, property and other assets (for example, adequate segregation of duties).
• Provide a comparison of expenditures with budget amounts for each federal award.

In order for the district to comply with federal regulations for grant recipients, the superintendent will implement written procedures for 1) cash management; and 2) determine the allowability of costs in accordance with Cost Principles and the federal award terms and conditions.

Cash Flow Management

The district shall draw federal funds using a reimbursement method.

Reimbursement Payment Method

For reimbursements of federal funds, the district will:

A. Monitor the fiscal activity (payments and reimbursements) under each grant on a continuous basis, and request timely reimbursement only for expenditures that have already been disbursed and comply with all applicable award requirements.

B. Maintain source documentation/accounting records that reconcile to the reimbursement request at a level adequate to establish that funds have not been used in violation of any applicable statutory restrictions or prohibitions.

Interest Earned

The district will retain interest earned amounts up to $500 per year for administrative expenses.

Extra-Curricular Accounting

Daily Processes

1. The bonded building secretaries and ECA Treasurer shall receive and deposit all ECA Fund deposits and forward to the ECA Treasurer.
2. The ECA Treasurer shall receive, receipt, account for and disburse all funds flowing through the extra-curricular accounts. All transactions will be reviewed and signed by the building administrator, Deputy Treasurer or Business Manager.

Monthly Processes

1. Fund balances – The extra-curricular treasurer should advise the activity sponsor periodically, preferably monthly, of the current balance in the fund of their activity.
2. IC 5-13-6-1(e) The bank shall be reconciled to the books, or financial software, by the 15th day of the following month if at all possible. Circumstances may arise that the bank cannot be reconciled by the 15th and the Treasurer and Superintendent will be notified.
3. Building administrator/Deputy Treasurer/Business Manager and ECA Treasurer complete and sign monthly check list stating that the following has been completed.
4. Claims are properly executed with all supporting documentation attached.
5. Receipts have been properly executed with all supporting documentation attached.
6. Receipts balance to the financial software system.
7. Bank statement balances to the financial software report, Summary of Receipts and Expenditures.

Semi Annual and Fiscal Year Processes

1. Financial Report - IC 20-41-1-8 the ECA Treasurer shall file a copy of the treasurer’s financial report of receipts and disbursements with the board of school trustees no more than 2 weeks after the close of each semester. Records and files of extracurricular activities for the entire school year shall be filed with the last financial semester report of any one school year. (Forms SA5-1 Financial Report of ECA’s, SA5-2 Cash reconcilement, SA5-3 Detail of Receipts and Expenditures by Fund, and SA5-4 Report Certificate).
2. ECA Risk Assessment Report - Per IC 5-11-1-4 the Business Manager is required to provide.
3. Effective July 1, 2015, Public Law 181-2015 amended IC 5-11-1-25 to require the SBOA to develop risk-based examination criteria and then determine the frequency each audited entity is required to be examined based on the results of a risk-based assessment.
4. The ECA Risk Report filed through Gateway is a part of the financial reports required to be filed by the Business Manager per IC 5-11-1-4 and has been designed as the tool for school corporations to provide the risked based criteria for their extra-curricular accounts (ECAs) to allow SBOA to evaluate for an appropriate level of risk.

Separation of Duties

1. Part of the control activity component is segregation of duties. An individual should not be permitted to initiate, approve, undertake and review the same duty. Separating the ability to record and authorize reduces the risk of error and/or fraudulent activities in a school setting. 
2. Segregation is not practical due to the limited number of staff available. Therefore, compensating activities will be utilized. This includes the principal reviewing and approving ECA reports and bank statements.
3. Expenditures and Endorsement of Checks.
4. IC 20-41-1-4 - Expenditures by the treasurer of the extra-curricular account are limited to those approved by the principal of the school and they should be in accordance with general administration policies of the school corporation since the law provides that all expenditures shall be subject to review by the local school board.
5. Unless specifically authorized by statute, payments made for goods or services which are not received shall not be made. Payments made in advance of receipt of goods and services may be the personal obligation of the responsible official or employee.
6. All checks will be signed by both the extra-curricular treasurer and building administrator/Deputy Treasurer/Business Manager.
7. Bank Reconciliation – Bank reconciliation shall be done by the deputy treasurer monthly, no later than the 15th day of the month following the reconciling month if at all possible. If circumstances arise that it cannot be completed by the 15th of the month, the Business Manager and Superintendent will be notified. The completed reconciliation shall be reviewed and approved by the Business Manager.

Entering and Posting Data

The ECA Treasurer is expected to keep current with the accounting of ECA funds, including entering and posting receipts and expenditures on a daily basis.

Purchasing and Receiving Functions

1. Purchase orders shall be created at the approval and direction of the building administrator.
2. Compensation and any other payments for goods and services should not be made in advance of receipt of the goods or services unless specifically authorized by statute.
3. Orders will be checked in by the teacher/club sponsor. Signed packing slips will be attached to the purchase order along with the approved invoice.
4. Receipts – A receipt is to be issued for any and all money received.
5. The cash receipts collected by and for the benefit of any activity fund should be in charge of some designated official or sponsor of the activity, until turned over to the treasurer of the extra-curricular account.
6. A receipt is to be properly issued, shall show the date, the name of the person from whom the money was received, the payment type, the activity fund for which it was received, the amount and the source of the receipt.
7. The receipt must be signed by the ECA Treasurer or collecting authority.
8. The secretary / ECA Treasurer shall deposit all receipts in one bank account without unreasonable delay.
9. Bank Deposits – IC 20-41-1-9 – the treasurer shall receive all funds and prepare a bank deposit. The deposit will be reviewed and approved by a second person. Deposits will be made without unreasonable delay.

Payroll

Building principals and secretaries will review time and attendance records within the timekeeping system for all hourly employees reporting to that building. Their approval will be submitted based upon the established payroll schedule.

Monitoring of Segregation of Duties

The Business Manager shall periodically review the Segregation of Duties at each building. In addition, the ECA Treasurer shall report internal control issues identified while executing their duties. These issues will be documented and evaluated by the Corporation Treasurer. Corrective actions will be implemented if needed.

Gateway Reporting

The State Board of Accounts created the ECA Risk Report which is reported through Gateway. This report includes beginning balance, receipts and expenditures, along with questions designed to determine the risk level at each school building. The reporting period runs from July 1st through June 30th each year. It is due near the end of August. Please check on Gateway for the specific due date. Additional information can be found on the State Board of Accounts website at http://www.in.gov/sboa/4449.htm.

Bonding Requirements

1. Issued in an amount fixed by the Superintendent and Business Manager of the approximated amount totaling the anticipated funds that will come into the possession of the treasurer at any one time during the regular school year.
2. Bonds shall be filed with the trustee or board of school trustees.
3. IC 20-26-4-5 states a blanket bond may be purchased as long as it is endorsed to include faithful performance of all required bond holders and includes aggregate coverage for all of the specified amounts of the required bond holders.
4. SBOA update issued 10/22/15 states that SBOA will not take exception to coverage via a crime insurance policy as long as it is authorized by resolution and endorsed to cover faithful performance and includes aggregate coverage.
5. Will be required to submit a copy of the official bonds to the SBOA on subsequent submissions of the Gateway Annual Report.

Cash Handling Practices

A Petty Cash Fund has been established in the ECA for use at the building level throughout
the year for events in which cash is needed. A check is drawn for Petty Cash for each
building and the cash is obtained by the ECA Treasurer to be kept in a lockbox at each
building. The cash is returned and verified to the ECA Treasurer at the end of the school
year.

Cash shall be collected and turned over to the ECA Treasurer along with a SA-8 form detailing the deposit. The ECA Treasurer will verify the amount of the deposit with the SA-8 Form and will issue a receipt. The deposit will be prepared and taken to the bank. If the Treasurer is unable to get to the bank at that time, all cash, checks and money orders are required to be locked in the safe until they are able to make the deposit.

Athletics

Since most events take place in the evening hours when the ECA Treasurer is not on duty, a safe must be maintained by the Athletic Secretary and/or Athletic Director to lock up the proceeds from the game or event. The following business day, the Athletic Secretary and/or Athletic Director will complete a SA-8 Form and submit to the Treasurer.

Concessions

1. Internal controls should include, at a minimum, a regular reconciliation of the beginning inventory, purchases, distributions, items sold and ending inventory to the amount received.
2. Any discrepancies noted should be immediately documented in writing to proper officials.

Gifts and Donations

The State Board of Accounts states that Cash donations that are extra-curricular in nature may be accounted for in extra-curricular accounts. The acceptance of the donations of over $1,000 shall have prior approval by the Board of School Trustees.

Ticket Taking

1. Serially pre-numbered tickets by the printing supplier should be used for all athletic and other extra-curricular activities and events which admission is required unless an online or digital system for ticketing is being used. Reports verifying ticket sales shall be kept as documentation if a digital system is used.
2. Tickets for each group shall be different colors and or different series numbers.
3. The ECA treasurer shall be responsible for the proper accounting of all tickets and should keep a record of the number purchased, the number issued for sale, and the number returned.
4. The treasurer receipt issued therefore should show the number of tickets issued to the seller, the number returned unsold and the balance remitted in cash.

Processing of Personnel Payments

1. Employee – Pay of teachers or other personnel for service at interscholastic athletic events such as ticket takers, scoreboard personnel, etc., are expenses of the Athletic Fund of the extra-curricular account.
2. Pay of concession stand supervisors and of ticket takers, etc., for fine arts events should be paid from the proceeds of the activity sponsoring the event. A claim shall be sent to the Payroll Department for processing through the financial software. The sponsoring club shall reimburse the expense.
3. Non-Employee – All non-employee vendors shall be paid by claim once a W-9 form has been obtained and entered into the financial system software.

Form Approval

1. IC 20-41-1-4 Officials and employees are required to use State Board of Accounts prescribed or approved forms in the manner prescribed.
2. A desired change or addition to a prescribed form must be approved by the State Board of Accounts as discussed in the Accounting and Uniform Compliance Guidelines Manual for School Corporations at: www.in.gov/sboa/2821.htm.
3. The use of computer-generated prescribed forms should be brought to the attention of the Field Examiner during the next regularly scheduled audit. The forms and computer system generating the forms are subject to a technical audit based upon the results of the Field Examiners risk assessment.
4. Write off Procedures.
5. Documentation should exist for all efforts made to collect amounts owed prior to any write-off.

Signature Stamps

A rubber stamp or other signing device should be used only under the personal direction of the public official and should be properly safeguarded when not in use since each official is responsible for his or her own signature.

Disposition of Old Outstanding Checks

No later than March 1 of each year, the Treasurer shall prepare or cause to be prepared a list in duplicate of all checks outstanding for two or more years as of December 31 last preceding year. The original copy shall be filed with the board of finance of the school corporation and the duplicate copy maintained by the ECA Treasurer. The ECA Treasurer shall enter the amounts listed as a receipt to the fund or funds upon which they were originally drawn and remove the checks from the list of outstanding checks. If the fund on which the checks were originally drawn is not in existence, or cannot be ascertained, the amount of such checks shall be receipted to the General Fund. Each list prepared must show:

1. The date of issue of each check
2. The fund upon which the check was originally drawn
3. The name of the payee
4. The amount of each check issued
5. The total amount represented by the checks listed for each fund

School Nutrition Program
Daily Procedures – Elementary & Intermediate

Patrons are able to deposit money into their “lunch account” in the Point of Sale (POS) to purchase meals and ala carte. The account is then used each day for purchases and is drawn down for the amount of the purchases. All money taken in is counted by the Kitchen Manager and added to the student’s Skyward account. The Administrative Assistant picks up the cash daily and deposits it in the bank.
1. Each day, the Secretary and/or Teachers collect money for the students’ breakfast/lunch accounts and place them into a sealed collection envelope.
2. The collection envelope is delivered to the cafeteria.
3. The Food Service Kitchen Manager then opens each envelope and verifies the amount inside against the amount listed on the envelope.
4. The money amounts are then entered into each child’s lunch account in the POS.
5. The Kitchen Manager prints out the Amount Tendered Report in Skyward and ensures the total on the report matches the school's total deposit for the day.
6. The Kitchen Manager signs the report and notifies the Administrative Assistant that they have a deposit. 
7. The Administrative Assistant picks up the deposit, counts to ensure the money received is also what is on the report, and signs the Amount Tendered Report.

Daily Procedures – Secondary

Patrons are able to deposit money into their ‘lunch account’ in the Point of Sale (POS) to purchase meals and ala carte. The account is then used each day for purchases and is drawn down for the amount of the purchases. All money taken in is counted by the cashiers and added to the student’s Skyward account. The Administrative Assistant picks up the cash daily and deposits it in the bank.
1. Deposits into a patron’s lunch account are made at the POS by the cashier.
2. Cashiers give their money to the Administrative Assistant, who counts it.
3. The Administrative Assistant prints out the Amount Tendered Report for the Jr/Sr High School and ensures the cash/checks collected match the amount on the Amount Tendered Report. One of the Cashiers and the Administrative Assistant sign the report.
4. The Administrative Assistant then prints the Cash Receipt Auditor Report and compares the total in this report to the total money brought in from all the schools.
5. The Administrative Assistant prepares the bank deposit and combines all the reports for the Food Service Director to count and sign.
6. The Administrative Assistant then takes the money to the bank, scans the entire document, and enters it into SSI.

Food Service Month-End Processes

At the end of each month, the Administrative Assistant and the Food Service Director, in conjunction with Central Office Staff (COS), complete procedures to close the month.
1. The total for each Account Type (i.e., Student Lunch, Student Breakfast, etc.) is entered into the 800 Fund of the Financial Accounting Software by the Deputy Treasurer.
2. The total change to Prepaid Food in Trust is entered into the 8400 Fund of the Financial Software by the Deputy Treasurer.
3. Any catering, rebates or miscellaneous receipts deposited by the Food Service Department are entered into the 800 Fund of the Financial Accounting Software by the Deputy Treasurer.
4. The Administrative Assistant prints out the “Monthly Accuclaim Report,” “Daily Income Sales & Deposits,” and the “Monthly Participation Date Report for all three schools and for the corporation.
5. The Administrative Assistant and the Food Service Director use these reports to complete the Claim for reimbursement on CNP Web.
6. The Deputy Treasurer adds the funds to the 0800 when a payment is received and emails a copy of the receipt to the Administrative Assistant and the Food Service Director.
7. The Administrative Assistant makes sure the payment matches what is in CNP web.
8. The Administrative Assistant prints out the “Food Service Month-End Numbers” from Skyward, a detailed list of all money spent from student and staff accounts, and helps enter the information into a spreadsheet with the Food Service Director. This spreadsheet is separated by breakfast, lunch, à la carte, and adult purchases from each school.
9. The Deputy Treasurer also has access to this spreadsheet and checks the information entered for accuracy.

End of the Fiscal Year Process

At the end of the Fiscal Year, the Food Service Director completes tools and reports to close out the school year, along with storage and destruction of appropriate records.
1. The Food Service Director and the Administrative Assistant complete the Annual Financial Report (AFR) in CNPweb using info gathered from financial reports from the Financial Accounting Software.
2. The AFR is signed by both the Food Service Director and the Administrative Assistant.
3. Before September 1st, the AFR is submitted online to the Department of Education through the CNP web.
4. The approved copy is printed and given to the Business Manager for signature.
5. All paperwork from the school year is placed in storage for 3 years plus the current year.

Prepaid Food in Trust Description

Patrons are able to deposit money into their lunch accounts in excess of their purchases for future use (Prepaid Food in Trust) at the Point of Sale (POS) or through an E-Payment Vendor online. This money does not actually belong to the Food Service Account until items have been purchased. The money must be accounted for in a separate fund until it has been used for purchases.
1. All physical deposits to patron accounts are accounted for in the POS system daily and broken down by the POS by actual Sales or prepaid food in Trust. 
2. Online Payments are deposited into the patron’s POS account instantaneously.
3. Once the E-Payment vendor releases the monthly statements, the Deputy Treasurer reconciles the amount to the bank account. Then a monthly transfer is made into the 8400.
4. The Food Service Director keeps a spreadsheet of patron deposits by day and claims for reimbursements made to student accounts. The Food Service Director uses this spreadsheet monthly to reconcile the Point-of-Sale patron account balance to the Financial Software’s patron account balance in order to transfer actual sales from the 8400 Trust account to 0800.

Food Service Bad Debt/Patron Balance Write-Off Procedure

F175 COLLECTION AND FORGIVENESS OF DEBT
The Board understands it is required to collect all monies owned to it by patrons, employees, parents and students, including money owed through student lunch accounts and other extracurricular accounts. Every effort should be made by the school administration to collect the monies owed to the school corporation including collection procedures. Such efforts must be documented by school administration before the debt is forgiven, waived, or written off of the school corporation accounts and considered an uncollectable account.

The school corporation may forgive, waive, or write-off all or a portion of the debt if one of the following conditions is met:
1. The school administration determines that the student or the parent or guardian of the student is unable to pay the debt;
2. The payment of the debt could impact the health or safety of the student;
3. The cost to pursue and collect the debt from the student and their parents would cost more than the potential total debt collected; or 
4. There are mitigating circumstances as determined by the superintendent that preclude the collection of the debt.

Every decision to forgive, waive, or write-off a debt must be documented and include the specific facts for the decision relating to one of the above stated reasons. If the uncollectable debt is a student lunch account, it cannot be an expense to the school food service account and must be covered by non-Federal funds.

The Superintendent may develop regulations addressing specific situations relating to the above conditions.

In the cases where a positive balance exists in the accounts, every effort must be made by the school administration to return the positive balance to the account holder when the person is no longer in the school corporation. If attempts made to refund the balance have been unsuccessful, the balance should be transferred to the corresponding school fund or if such transfer is not appropriate, to the school corporation general fund.

Food Service Board Approval for Student and Staff Meal Prices

Each year it is required that the School Board approve Student and Adult Meal Prices. Also, each school year the School Food Authority (SFA) is charged with calculating their paid lunch price increase requirement to meet the requirements in Section 205 of the Healthy, Hunger-Free Kids Act of 2010. The PLE Tool was created to help with the calculation. The completed PLE Tool is required to be sent to the Department of Education each school year.
1. The PLE tool is completed each spring to determine if a price increase is required. An exemption from raising prices can be requested if certain criteria are satisfied.
2. A student meal price recommendation is then submitted to the School Board for approval.
3. Adult lunch prices are required to be equal to or higher than the total cost of a high school student meal plus a paid-meals federal reimbursement.

Separation of Duties

Internal Controls are set in place to provide for separation of duties and to ensure the integrity of the Food Service Program.

Bank Reconciliation

1. Completed by the Corporation Cafeteria Manager and the Deputy Treasurer.
2. The Corporation Cafeteria Manager matches all online deposits made to the Point of Sale (POS) online and reports any deposits in transit to the Deputy Treasurer.
3. Daily POS transactions are posted at the end of the month by the Deputy Treasurer into the Financial Accounting Software.
4. The Deputy Treasurer reconciles the bank statement each month and the Business Manager checks it over and signs.

Purchasing and Receiving

Completed by the Cafeteria Managers and the Food Service Director.
A. Food and supplies
1. Food Bids are advertised and awarded to vendors by the Food Service Director in May through the Food Service Department’s co-op.
2. Order guides are created by the Food Service Director for the Kitchen Managers.
3. Kitchen Managers then place their online orders from the approved order guides.
4. The Kitchen Managers check in all food deliveries.
5. The Administrative Assistant processes all invoices and prepares them for signature of the Food Service Director.
B. Other Purchases
1. Small purchase items not on the bid are placed by the Kitchen Manager or the Food Service Director.

Contracts

1. Any items over the $150,000 threshold will be bid with the assistance and guidance of the Business Manager
2. All invoice pricing is double-checked against bid and quoted prices by the Food Service Director. Expenses are entered into the Financial Accounting Software by the Deputy Treasurer and Administrative Assistant.
3. Checks, check registers, and records are processed by the Deputy Treasurer and Business Manager.
4. All contracts are evaluated by the Food Service Director in cooperation with the Business Manager and signed by the School Board.

Free and Reduced Applications

1. Free and Reduced Applications are processed and entered into the Free and Reduced Meal Application (FARMA) Program by the Administrative Assistant within 10 days of receipt and signed and dated.
2. An audit is completed for every 5th application by the Food Service Director.

Payroll

1. Time and attendance are entered into an online timekeeping and attendance system. Each pay period, it is reviewed and approved by the employee and the Food Service Director.
2. Payroll is processed by the Payroll Specialist.
3. The Business Manager checks the payroll printout and signs off.

Monitoring

Audits of food service processes and procedures are performed regularly by the Food Service Director.