NORWICH FREE ACADEMY
ACCOUNTING PRACTICES FOR GROUPS AND CLUBS POLICY
Student Activity Funds
The basic purpose of education is to prepare each generation of children for life's experiences. In order for this preparation to occur properly, the programs available to young people must be as broad as life itself. An important segment of these programs are extracurricular activities. These programs represent experiences which should be available to our students.
The following is being established as a guide to student activities financial accounting. This is to insure that efficient procedures are available for the creation, operation and disbursal of student activities funds.
Regardless of the methods used to finance school activities, the Norwich Free Academy and thus the administration is ultimately responsible for the funds. State Statutes require that separate accounts be maintained and further, that such school activity funds be considered NFA accounts and audited in the same manner as all other Academy accounts.
The raising and expending of activity money by student bodies should have but one purpose: to promote the general welfare, education and morale of the students and to finance the normal, legitimate, extracurricular activities of the student body organization. Student activity money shall insofar as possible be expended in such a way as to benefit those pupils currently in school who have contributed to the accumulation of such money. The management of student activity funds shall be in accordance with sound business practices, including sound budgetary and accounting procedures and thorough audits.
It is the intent of these guidelines to recommend a system of bookkeeping procedures for handling the money, and the policies governing the school activity accounting.
A. Principles Governing Activity Fund Accounting
The accounting procedures outlined in this section are based on the following principles:
1. The administration of the activity funds shall be governed by rules and regulations prescribed by the State of Connecticut and The Norwich Free Academy Board of Trustees.
2. The Superintendent/Head of School of NFA, as trustee for the fund, shall be directly responsible for the conduct of the student financial activities in accordance with policies, rules and procedures set forth by the State and the Board of Trustees.
3. The Superintendent/Head of School, as trustee for the fund, shall be directly responsible for all student activity funds within the school and shall be responsible for the maintenance of records and administration of procedures as prescribed by Chief Financial Officer of The Norwich Free Academy.
4. The Chief Financial Officer shall have responsibility and authority to implement all policies and rules pertaining to the supervision and administration of student activity funds in schools in accordance with established policies and rules of the Board of Trustees.
B. Management of Student Activity Funds
Student activity records and financial procedures shall be subject to periodic audits by internal personnel and annual audits by outside independent auditors. Additional audits shall be conducted whenever deemed necessary by the administration and/or the Board of Trustees. Audit reports shall be referred to the Superintendent/Head of School and Chief Financial Officer for informative purposes and possible improvement of procedures.
Regular monthly and annual reports shall be prepared by the Chief Financial Officer or his/her designee and submitted to the particular club/activity advisor.
Student activity funds shall not be used for any purpose which represents an accommodation, loan, or credit to any person or for any unlawful purpose or purpose that violates school rules or Board policy.
The Chief Financial Officer shall designate a person or persons, in addition to himself or herself, who shall be authorized to receive, deposit and account for funds. At least two signatures (club/activity advisor and Student Activity Director) shall be required for all withdrawals. Supporting evidence shall be required prior to signing the check or withdrawal slip. Blank checks shall never be signed. Such action makes the signer personally liable for anything recorded over his/her signature.
Each account must be so accounted for that the identity of its resources, obligations, revenues, and expenditures is maintained at all times without exception.
C. General Procedures for Receiving and Disbursing Money
Collection and Deposit of Cash
All monies collected from any source must be substantiated by prenumbered duplicate-copy receipt. A receipt will be issued immediately upon receipt of funds by the school's Finance Office. The first copy of the receipt is to be given to the person from whom the money is received. The second copy is to be retained by the Finance Office as a permanent record of money received. Collections should be deposited daily, whenever possible. Money should never be left unsecured or in the school over weekends or holidays. All monies collected shall be placed in the school safe for safekeeping. Said monies shall remain in the school safe only until such time as deposit can be reasonably completed. All checks to be deposited in the student activity bank account shall be endorsed immediately upon receipt showing a restrictive endorsement.
Student Activity Funds
All disbursements shall be made on pre-numbered checks which serve as the basis for making an entry recording the disbursement. Disbursements shall be prompted by a purchase order (reimbursements on a voucher). Accuracy of prices, extensions and totals should be checked prior to payment. When a check has been written, the invoice and supporting documents, shall be marked. "PAID BY CHECK NUMBER----------------- " and "DATE
OF PAYMENT--- " and shall be filed for auditing purposes. TWO signatures shall be
required for all disbursements. Records of Transactions
The Chief Financial Officer or his/her designee shall maintain a complete set of books recording all monies deposited and disbursed. The Cash Receipts Journal and the Cash Disbursements Journal shall serve as a control whereby the total amount of money deposited and expended for all funds is maintained continuously. All transactions shall be entered and categorized to permit appropriate analysis.
Legal Reference: Connecticut General Statutes
Policy Adopted: June 14, 1995
Revised: May 22, 2007