1. How do I determine to which account a check should be charged?
Checks should be charged to the account for which the expense best pertains.

2. When is a purchase order needed?
Use a purchase order when the purchase exceeds $100 and is to be paid at a later time.

3. When does the school have to pay sales tax?
The school should pay sales tax on any item purchased for resale, excluding textbooks.

4. If a school only has two fund-raisers a year, do they have to pay sales tax on these two?
No, but supply sales, school pictures, vending machines, and concession sales all qualify as fund-raising activities. If a school has more than two fund-raisers a year, sales tax must be paid on ALL fund-raisers, even the first two.

5. When is prior permission required for a purchase?
A single item purchase of $1,000 or more (Assoc. Superintendent)
Equipment, regardless of the cost, that is attached to the building
For purchases of $5,000-$10,000 (Assoc. Superintendent or the Superintendent)
A single item purchase of $5,000 (Board of Commissioners)
For purchases of $10,000 or more (Board of Commissioners)
Purchases should not be subdivided to circumvent these requirements

6. When is permission needed to accept a donation?
Any time the school receives a donation of $500 or more, the school should request permission to accept the donation.

7. Where should donations be coded?
Donations should be coded to the gift account unless the gift was donated for a specific purpose. If so, the school should have the donor make the request in writing, and a restricted account should be opened to track the funds.

8. When are bids needed?
Competitive bids should be obtained and documented when the school makes a material purchase of $100 or more. For example, a bid is not required for the purchase of a $79 copier, but a bid is required if two $79 copiers are purchased. Purchases should not be subdivided in order to circumvent bid policies.

9. Are tour companies required to be on the approved bus listing?
Yes, so that MCS can ensure the company carries adequate liability insurance or subcontracts to companies that carry the adequate coverage.

10. If the school has a fund-raising activity in which the faculty participates, (e.g., a faculty-student ball game), can the proceeds be shared by both the students and the faculty?
No, anytime students are used to raise funds, these funds belong to the students. Funds cannot be placed in any teacher courtesy or coke account.

11. When is it necessary to prepare an income statement?
At the end of each fund-raising or pay activity.

12. How does a student qualify for fee waiver?
Any student that qualifies for free or reduced-price meals and whose parent/guardian signs a fee waiver request form is eligible to have school fees waived.

13. What does fee waiver cover?
School fees, which are defined as fees for activities that occur during regular school hours, and/or for supplies or materials required to participate in all courses offered for a grade or credit. Fee waiver does not include fines, charges owed to the school for lost or damaged textbooks, lost library books, lost workbooks, basic supplies such as paper and pencils, or costs for extracurricular activities occurring outside the school day.

14. What if the school has used all their fee waiver allocation and a student requests a school fee be waived?
The school must provide fee waiver if requested even if the school’s allocation has been exhausted. Therefore, the principal should carefully monitor the number of qualifying fee-waiver activities and/or materials that the school requires to prevent overspending of the fee waiver allocation.

15. How long must a school retain financial information?
The monthly School Activity Accounting report must be maintained indefinitely. Other financial records may be destroyed after five years.

16. What documentation is needed for disbursements?
Proper supporting documentation includes: invoices, cash tickets, or other proofs of purchase. Statements alone are not adequate documentation.

17. When are journal vouchers needed?
If a check or deposit has been updated and a mistake is discovered, a journal voucher is needed to correct the error. For example, if a receipt is coded to the wrong account and the information has been updated to the system, a journal voucher is required to correct the error.

18. How do I determine if the journal voucher entry is a revenue or an expense?
All deposit adjustments are revenue and all check adjustments are expense.

19. When are two journal vouchers required?
A journal voucher is needed when funds are being transfered between two accounts. It is an expense to the account giving up the funds and a revenue to the account receiving the funds. Account coding errors only require one journal voucher. For example, if funds are deposited in one account, the journal voucher is marked as revenue. The account that should have received the funds is credited and the account that actually received the funds in error is debited.

20. Who is authorized to sign checks for the school?
The principal must sign all checks; normally the finacial secretary is the second signature. The principal may choose a third person to sign in place of the financial secretary. Designated signers must be on the bank’s signature card.