Home

Insider`s Guide to School Business and Internal

1. Return to Portal Help Search For Requisition gt Requisition Number a Vendor Number fico EA Vendor Name JOFFICEDEPOT o EA PO Number L From Date fosyory2005 gf To Date fosy05y2005 g Unit Fund Account Program Grant Year Search Reset Budget Line feno fis 53405 252502 oooo00 El eg Internet Appendix D Cash Advances Payables and Purchasing D 8 ee From the Vendor tab narrow criteria by entering vendor name number status or type Back gt O A Al Asearch Gyravortes meda SA Eby Sh Sf E W Failed to retrieve buttons from My Web Search Retry Return to Portal Help amp inks gt 3 gt _ Cbs CHICAGO PUBLIC SCHOOLS Vendor Number Vendor Name Office Depot Vendor Type Vendor z Vendor Status Active Reset C Inactive C All Inquiry Site Detail Export VendorAddress Type Status Inactive Reason C 14360 OFFICE DEPOT 515 KEHOE BLVD CAROL STREAM IL 60188 Vendor Active Done T S tg internet Appendix D Cash Advances Payables and Purchasing D 9 re Locations From the Locations tab view CPS locations by using search criteria such as unit or location name Oracle or legacy unit number address information or location status Reset 01000 1000 Unit Name Oracle Unit Legacy Unit Region Instruction Dup
2. CPS YS CHICAGO PUBLIC SCHOOLS Insider s Guide to School Business and Internal Accounts C aaas Insider s Guide to School Business and Internal Accounts Ser Torn TG CFO eccciicciaces Siavstoreuted acotersay EE E E a RE i IMTOJUCUON porgisson a aA a ATAR ii Guding Principles sire eee en re ne tee cee een ee eee ee ee ee ee ji Contact Information aoc canssecdsa nia cewecusacceuncayes cette coetensacentadaseuctares sbvanedGcadsienadiecuamencemciass vi 1o FROIN UG UUM einmanna A EAA i a 1 1 A Roles and Responsibilities ia isisccceiscastesccdceentecensndeseedem cperateeeen eactecendixennvernt ners 1 1 B Internal OM ONS 2icccccccantsactanscsysncenvens wanes dade tnaans scchanceessctaselauatdcesdieinetenalsitendaccs 1 6 C Transition of lg 121 2 kc ee eee eee ee nee ne ee ee ee 1 6 D Transition of Clerks Treasurers and Business Manage s ccccceeeeeeees 1 9 E Schools Closing cc itesic cancsaacuecannsteutteapjustocneidaredcenessaectciausecmamnadtia ianaiencieecias 1 10 F Audits and Investigations c235c Aet cette ce eteceiee easier teens 1 11 G Financial SUPCrViSION cee ec eee ee cece eeeeeeeeeeeeeaaeeeeeeesaaaeeeseaaeeesneeneeeestenaaes 1 12 H Educational Crisis aiscbtacs sccarca icone anions terest cnet ceagatdeiaddadadecrecacslcananidueieeencaetenaes 1 13 Il Checklist and Chapter REViIOW cccecccceeeeessceeeeeeseeeeeeeeeeeeeeeeeeeeeeeeeeaaeeees 1 14 2 Money Handling as sek eee ad
3. ToDolit f A Balance Sheet Profit amp Loss pe eens seen sommes meme T e Transaction Journal Step 2 Indicate the date of the Journal Entry M Y 0 B automatically defaults to the current date Step 3 Indicate first the account from which you are transferring the money by either typing in the exact account number or positioning the cursor in the Acct column and pressing TAB Once the account is selected type in the transferred amount Step 4 Indicate the account to be transferred to and the amount Step 5 Review the transaction for accuracy and if correct record the transaction Bookkeeping 4 26 General Journal Entry General Journal GJoo0002 Date FA 9 Memo To Transfer Fundraising Profit to Gym Activity Accounl Name Debit Credit Job Fund Raising Gym Class 457 00 2 2240 Gym Class Account 457 00 Total 457 00 457 00 Out of Balance How do I know the journal entry was made correctly e In Command Center select Transaction Journal e Change the date range to include the date of the transactions you want to view e Click the Folder Tab that describes the type of transaction e Use the scroll bar to locate the transaction In the General Ledger s Command Center select Chart of Accounts This displays the current balances in all of the established accounts By scrolling down to the accounts that were affected by the journal entry you should see that the balance in the account
4. C mmama Bureau of Accounts Payable The primary responsibility of the Bureau of Accounts Payable involves paying vendors in a timely manner School Business Services School Business Services develops top quality business practices and measures that serve as models for individual units coordinates workshops and training educates business managers and principals to be accountable and fiscally responsible and organizes monthly reports to the CFO School Business Services provides a wide range of workshops that cover the following topics Internal Accounts M Y O B Budget AIMS Purchasing Accounts Payable and Business Manager clerk and new principal training In addition SBS provides support and assistance in all areas of school finance This support includes school visits when practical School Office Services The School Business Support Services Program provides schools with troubleshooting assistance one on one site based training and support in all areas of school finance This program ensures a school s financial compliance and greatly reduces audit exceptions For more information please call 553 3278 or 553 2785 Bureau of Treasury and Debt Management The Bureau of Treasury receives all checks and letters of credit from government agencies This bureau manages CPS treasury operations and debt financing activities to optimize cash flow and investment earnings and to obtain the lowest cost financing for capital project
5. Indicate the position number and or budget classification on the face of the check to ensure the proper position is funded Monitor the overtime position to ensure that the expenditures taken from it do not exceed the funding provided for the position This is the unit administrator s responsibility Reimburse the Board of Education for any excess expenditure from the overtime position Not paying the Board of Education for additional staffing is considered an audit exception Revenue Generation 5 5 Lease Income recurring Step 1 Step 2 Step 3 Step 4 Step 5 All income generated from the lease of school property should be deposited in the school Internal Accounts School property consists of the school grounds and any building partially or primarily located on the land In January 1996 the Board of Education amended the policy on lease income empowering the school principal and LSC to spend lease income at their discretion as long as the income benefits the school s facility and or educational program This discretionary expenditure should occur after the school has designated any lease income towards the maintenance of the leasing property Identify an opportunity to lease school property Contact the Bureau of Real Estate at 553 2950 The Bureau can provide assistance with proposal development contract negotiations and Board Report requirements The Bureau of Real Estate prepares the Board Report and a contr
6. Record the payment by clicking on RECORD When all payments have been recorded the checks will print if the check writing feature is used Step 7 Step 8 prereesrereererererereeneee M Y O B Accounting le E Command Centers Setup Reports Balance 250 00 e Checks Window Help Handwritten OEIC ENEKEN KREN EKE IRN NENEN NI Amount Card Clay Harold JE ONgheck tt xX x Ed Write Checks _ MARKY HANNA KAKA AAAKAARAARANAARRAA AAA NARA AAA ARAM AAAA AAA NAAN AA RRR RI MMMM RRR AXAKE x KARANAKANAAAAAMARKRARAAARAA RAN AAA RARAA AANA XXXXKKXXXXXXNK RERRERRRM AD ARIS XK ERK ecra 8 3 98 x AAAA AANA NAXNXNXXNXNKXNKN HRRRARRRNE pansuhmetmennnetne Pete H HRRMRRRRRM KHOR ENK ARAARA AANANAAANANN x BR RAXXRRRKRRARRAKARARRARRRRARR AK XX sh he aE TERRES EIN TSE MTL CATE MEE CEE EHEC TE SESE SESE AER CAE OER HE ESE EA CC EEE REA OE EE ACHE OC EE EE SEA EGR OE ECE Fcnannasnainnitn eH MR eee ee eae eae sess sss eee eae assesses eae ees seeks EEEE EEEE RAXXXXXXX i A PEPPE PEPPU eae ease esses se aca ease eta ae seaea ee aeaeae ee seseaeae SSE MESES EGER CCHS RGER NAIC MSC HRS RICH ARMAGH ROE RSEAEN LACHER SESE CHEESE KK XNNKKKAKXXXXAXNNKKXXXXXXXXMHXXXXXXXXXKK ARRAXAXRARKRKRARARARRARAKRARARARRRRKRRARARARKARARARARAARK KAKA EE PERET EETERDEEETERTEEDN XX E uae E E EEA Lae aL AE ESLER EEE TETEE EHE MEE REE EAE reg uisition 25 Eee Sesetebetcttttrttarararanananaranszaza
7. e Any significant discrepancies must be reported to the Region Business Manager for review and possible action Revenue Generation 5 25 re H Continuous Fundraising Activities and Concession Sales A school may conduct its fundraising through continuous sales such as the use of a vending machine or selling concessions at school related events Requirements for a continuous sale are the same as the one time sale with a few exceptions Step 1 Prepare Local School Fundraising Proposal Because the fundraising activity is continuous if required a fundraising proposal must be submitted and approved at the beginning of the year Step 2 Obtain proper approvals for sale Step 3 Conduct sale and deposit collections with School Treasurer The Concession Sales or Ticket Accounting Reports must be completed and turned into the School Treasurer at least two times per year preferably November and May Step 4 Maintain a Perpetual Inventory Card In order to maintain control over inventory for continuous sales Perpetual Inventory Cards are required along with the Concession Sales Accounting Report Please refer to Appendix B for a copy of the Perpetual Inventory Card and the Concession Sales Accounting Report Perpetual inventory Cards should be updated at least two times per month Step 5 Reconcile the fundraising account on a semi annual basis RS _ If various selling prices are used to sell goods a difference will arise when E j
8. 2 Review records onsite and or those previously sent to offsite storage Verify that records can be disposed pursuant to the most current approved Record Retention Schedule 3 Pack onsite eligible records and label boxes according to the procedure regarding disposal of records Complete the Record Disposal Form as required Provide CPS Records Management Staff with a copy of the completed Record Disposal Form s by Fax or through CPS Distribution 6 Once CPS Records Management Staff approve completed Record Disposal Form s arrangements will be made for onsite records eligible for the disposal to be delivered to the Student Records Services warehouse where disposal will take place Records eligible for disposal currently stored at offsite commercial storage will be disposed at the storage facility after the disposals have been approved G Please notify Records Management Staff if records found in your office are not currently listed on the approved Record Retention Schedule Records Management Retention and Disposal 6 5 4 Retrieval of Records from Offsite Storage and Returning Records to Offsite Storage A Administrative offices and departments with a need to retrieve records previously sent to offsite storage should refer to their department s storage records for required box and barcode information and to the procedures for retrieval of records from offsite storage and procedures for returning records to offsit
9. Money Handling 2 12 I B Banking How is a bank chosen Any federally insured bank or savings and loan within the City of Chicago may be selected This selection is at the discretion of the principal The selected institution must return canceled checks or provide some copied form of the checks Please request that your banking period conclude at the end of the month and that your school will receive a bank statement at this time What about municipal depositories amp Schools are not required to deposit funds in a municipal depository In November 1996 the City Council voted to amend the article and section of the Chicago Municipal Code stating that any municipal funds including local school funds must be deposited in a municipal depository The amendment passed allowing schools to deposit funds raised by Internal Account activity in neighborhood banks and savings and loan associations that may not be designated as municipal depositories The City Council made this decision based on the following factors The deposit of local school funds in local banks has the advantage of convenience and return of good will from the bank into which the funds are deposited The Board of Education had difficulty enforcing the past regulation of depositing all school funds regardless of source and use of these funds within a municipal depository as required by the City Treasurer s Office This amendment legally allow
10. TEACHER SPONSOR 1 Complete the information required at the top of the report 2 a The beginning inventory withdrawn from the School Treasurer on the Internal Accounts Monthly Trial Balance or the quantity of sale items on hand per physical count from previous semi annual reporting period is entered in columns 2 and 5 Enter the appropriate date in column 1 b Inventory data transferred from one inventory card to another due to additional space requirements at any time other than at the end of a periodic sale or semi annual reporting period is posted from the total line for columns 2 3 4 5 and 8 of the previous card Enter the appropriate date in column 1 3 As additional inventory items are withdrawn from the School Treasurer on form Internal Accounts Monthly Trial Balance enter the date and quantity withdrawn in columns 1 and 3 respectively 4 As sales are made the summary of sale activity is entered in column 1 and 4 respectively 5 Column 5 is increased by the amount posted to column 3 and decreased by the amount posted to column 4 6 As cash receipts are deposited with the School Treasurer complete columns 6 7 and 8 7 At the conclusion of the sale or at the end of the reporting period November or May total all columns except columns 5 6 and 7 8 Indicate whether the totals are being carried forward to a new card and or if they are being recorded on a Concessio
11. authorized check signatories School Financial Services recommends having a minimum of three signers for bank accounts Schools are to have only one checking account e Run an Activity Report to verify budget line balances and reconcile Board of Education budgets and Internal Accounts balances e Runa report on all open purchase orders to verify agreement with any funds to be spent and or merchandise to be received This information can be obtained using the iProcurement system e Change the passwords on all systems where the outgoing principal had access such as the Student Information system and the iProcurement system To change passwords on the online systems complete the Oracle Access form located at http appsmt csc cps k12 il us 8000 OA HTML US Oracle User ID Request v3 doc or contact the Office of Technology Services OTS at 773 553 1300 e Change password for Kronos Time and Attendance and Corrected Attendance Reporting CAR approvals e f necessary ask the Bureau of General Accounting to verify the latest Assets inventory e Collect all keys to school door locks and if necessary change the locks Administration 1 8 MR D Transition of Clerks Treasurers and Business Managers All new school clerks treasurers and business managers have numerous training opportunities and resources available The following is a list of these services providers e For Kronos training please contact the Bureau of Payroll S
12. computing the Concession Sales Accounting Repor Differences should be explained on this report What if discrepancies between sales and receipts occur All discrepancies must be documented on the accounting form If unexplained discrepancies occur a report must be made to the LSC and the area office Depending on the situation appropriate action will be taken such as an investigation by the Inspector General to determine if criminal activity took place that may result in restitution by individuals involved or disciplinary procedures A written plan should be prepared to identify controls and procedures to ensure that discrepancies do not occur again Revenue Generation 5 26 are I Vending Machines Beverages The Chicago Board of Education enters into a vending machine contract for the entire district Research is performed to ascertain the level of compensation each school is entitled to receive as part of standardized fund management and payment procedures All hold harmless compensations are to be made via EDI Chicago public elementary and high schools were surveyed to obtain data pertaining to their respective vending machine services activity as well as associated revenue streams The revenue streams are utilized to establish each school s hold harmless compensation amounts Ongoing contact will be maintained with vending machine suppliers to ensure that timely responses to each school s needs and to any Boar
13. e Goods and services have been received e A paid receipt or invoice is provided The school clerk processes all payments Payments can be made by manually writing a check or preparing a check using an automated check writing feature In either case two authorized people must sign the check To write a check using M Y O B please refer to Chapter 4 Bookkeeping for additional information Maintain records of payment Match the purchase order to the receipt Indicate the check number on the requisition and write PAID on the receipt File this with other paid bills Purchasing 3 6 aaa What are the responsibilities of the parties involved in a purchase Teacher Sponsor e Identify the need for a purchase e Identify a vendor to be used obtain multiple quotes if appropriate e Prepare a purchase request using School Expenditure Requisition Order e Receive approval from the principal before making the purchase School Treasurer e Determine whether the sponsor has funds available e Check clerical accuracy of expenditure requisition e Assist sponsor in getting the principal s approval e Process invoice for payment including possibly signing the check Principal e Approve request School Expenditure Requisition Order prior to purchase For reimbursements the formal approval should be made prior to the staff person making the purchase e Approve any changes to the request e Sign check when payment is to be
14. 1 2310 School Purchased 500 00 GJOOO0N1 2 7000 Non Depreciated F A GJOO0003 2 3150 Fund Raising Gym Class 457 00 GJOO0003 2 2240 Gym Class Account Step 4 Option1 Select the Edit menu to remove the transaction If the transaction was entered during the current session of M Y O B Delete General Journal Transaction will appear By selecting this the transaction will be deleted Option2 Select the Edit menu to remove the transaction If the transaction was entered during a previously saved session of M Y O B M Reverse General Journal Transaction appears By selecting this a reversing transaction is prepared automatically Click on Record to make the reversing entry M Y 0 B Accounting File Lg Command Centers Setup Reports Window Help Cut Ctrl X Delete will be Copy Ctrl C Paste Ctrl V Clear been made in the Delete General Journal Transaction current session Recap Transaction Ctrl R Name Debit Credit Job 2 3150 Fund Raising Gym Class 2 2240 Gym Class Account 457 00 l E 457 00 457 00 457 00 Out of Balance Bookkeeping 4 34 M Y 0 B Accounting Setup Reports Window Help Aia Command Centers urnal eral Journal Entry of Computer for Science Club Debit Total Out of Balance Journal Save 2l STEVE_BO DAT Cut copy or paste information How do I record NSF checks Non Sufficient Funds NSF checks and
15. 2 XXXX X XXX Credit 1 1100 Checking Account X XXX Bookkeeping 4 9 Additionally the following entry should be made to record the amount of the purchase funded through Internal Accounts Debit 1 4100 Fixed Asset or 1 4200 Donated Asset X XXX Credit 3 1000 Non Depreciated Fixed Asset X XXX Please Note If a school purchases equipment using money received as an advance or reimbursement from the school budget line the equipment should not be recorded in the ledger but only on the School Equipment and Furniture Register Detailed information on this register is included in Appendix E Why is a school level asset inventory important ae 2 An asset inventory T e Provides the necessary information to complete a police report if e equipment is stolen e Allows the Principal or other administrators to monitor inventory in the school e Alerts other school personnel that assets are being monitored and they are responsible for these items e Provides a basis for planning future purchases What are the criteria for removing obsolete stolen unneeded or broken equipment from the register For equipment that is obsolete unneeded or broken and is no longer needed by the school this procedure must be followed Step 1 Complete an Asset Transfer Disposal Form Please refer to Appendix E or http www cps k12 il us AboutCPS Departments finance forms Asset_ Disp osal_ Transfer _Form xls for a copy of this form Step 2 Arrange
16. 5 32 Records Management Retention and Disposal The Chicago Public Schools CPS Records Management Program addresses records management issues in the schools administrative offices and departments located throughout the system All CPS administrative offices departments and schools should be familiar with the CPS Records Management Policies and with the CPS Records Management Procedures Forms and Record Retention Schedule to ensure compliance with local state and federal requirements for records maintenance and retention The CPS Records Management Staff is available to assist the schools administrative offices and departments in complying with the applicable Board local state and federal requirements Please remember policies are being updated constantly Therefore please ensure you are using the correct policy version All Policies will be enforced in accordance with the certified versions of the Policies In the event of a discrepancy or a perceived discrepancy individuals should refer to the certified Policies which are available from the Secretary of the Board The Secretary of the Board can be contacted at the Chicago Board of Education 125 South Clark Street 6th Floor Chicago IL 60603 773 553 1600 CPS Records Management Policies e Retention and Management of Business Records 01 0725 PO3 e Guidelines for Maintenance of Student Records 01 0328 PO2 e Parent and Student Rights of Access t
17. Create the following monthly reports Create the following reports each month Summary Trial Balance e Balance Sheet General Ledger Cash Disbursements Journal Cash Receipts Journal The Reconciliation Report An asterisk indicates reports must be submitted to the area office by the third Monday of the month along with a copy of the bank statement signed by the principal Bookkeeping 4 28 ee To create the reports e Click on Reports e Click Index to Reports Choose the report to be created Click Filters icon e Enter the desired date s e Put an x in the zero balances box by clicking the box Click Display to view the report or click Print to print the report M Y 0 B Accounting eae an Index to Reports Ctrl I elect Index to I coed Click the tab for General Ledger Select Trial Balance Displays only the debit or credit piece of any transaction that is attached to the selected account in the selected Summary source journal and within a date range It does not display the entire transaction 0 Name Command Center Profit amp Loss Budget Spreadsheet General Ledger Profit amp Loss with Year to Date General Ledger Profit amp Loss with Last Year General Ledger Profit amp Loss Sales Analysis General Ledger Profit drratyst General Ledger Optional Click on display to view on screen the report otticbesstha ahta Profit amp Loss Budget Analysis Ge
18. Funds Distribution Request Appendix D Cash Advances Payables and Purchasing D 1 Oa School Expenditure Requisition Order http cps k1 2 il us AboutCPS Departments finance forms School Expenditure Requisition Order xls Appendix D Cash Advances Payables and Purchasing D 2 ee Requisition Worksheet http cps k12 il us AboutCPS Departments finance forms Requisition Worksheet xls Appendix D Cash Advances Payables and Purchasing D 3 ee School Cash Advance Reconciliation http cps k12 il us AboutCPS Departments finance forms School_ Cash _Advance_Reconcilation xls Appendix D Cash Advances Payables and Purchasing D 4 Web Inquiry With the Oracle Web Inquiry Tool you may translate between legacy and Oracle chart of accounts check your budget balances look up purchase orders and invoices perform vendors and review CPS locations Please access the Web Inquiry Tool via the Oracle applications login page at http erp csc cps k12 il us 8000 OA HTML US ICXINDEX_appsprod _erp htm Chart of Accounts Translator From the COA Funds tab you may translate budget lines and check funds Back gt O A A Qsearch GFavortes meda Gy Si 2 W Failed to retrieve buttons from My Web Search Retry B Links gt CPS CHICAGO PUBLIC SCHOOLS Enantia tuta Een E ZH A ale PO ye PRAD a okup ce ar Enter either legacy or Oracle account information Click on th
19. Mandatory Account 2 3120 Graduation Fees Optional Pay for events All expenditures must meet the expenditure guidelines by having a completed School Expenditure Requisition Order and original invoices All events should be paid from the graduation ledger accounts assuming adequate funds are available Revenue Generation 5 12 re E Photographs School picture taking is an annual tradition many schools use as an opportunity to raise funds Typically the school and the photographer agree on the photographer s costs with the school receiving a percentage of the gross sales Because school picture taking is a fundraising activity fees collected for school pictures should be recorded in the school s Internal Accounts This requires school personnel to accompany the photographer s staff in collecting photography fees in order to ensure that the amount of fees collected is recorded accurately The school is responsible for depositing the fees collected in the school s Internal Accounts The school must retain the fees collected until the product i e the school pictures is delivered to the students and a proper invoice is submitted Once the product has been received the school retains its percentage of the sales revenue and remits to the photographers the proper percentage of the fees collected The school should not submit the total amount of fees collected to the photographer before the product is delivered Doing so giv
20. O A A Qsearch Gyravorites meda lt Gh Sp Sf 2 Failed to retrieve buttons from My Web Search Retry B inks gt 6 CPS CHICAGO PUBLIC SCHOOL Return to Portal Help Search For PO d PO Status All hd Vendor Number 14360 A Vendor Name OFFICE DEPOT EA PO Number From Date 03701 2005 Sf Board Report No To Date 03705 2005 A Unit Fund Account Program Grant Year ine S Budget Line feno ms faas s2502 jooo Reset Requisition Invoice PO Detail Export a C 892454 B 0301 2005 APPROVED 16 70 0 00 CLOSED N OFFICE DEPOT Tota 1670 0 00 4 El Done I Internet Appendix D Cash Advances Payables and Purchasing D 7 ee For Invoices narrow criteria by entering vendor name or number invoice or PO number dates or budget line File Edit View Favorites Tools Help PO Inquiry Microsoft Internet Explorer DAAE Return to Portal Help Search For Invoice z Invoice Number Vendor Number 14360 Sf Vendor Name OFFICE DEPOT Sf PO Number From Date 03 01 2005 ra To Date 03705 2005 g Fund Account Program Grant Year anr Search Reset Budget Line fao ms 53405 252502 foooo00 E tg Internet For Requisitions narrow criteria by entering vendor name or number requisition or PO number dates or budget line PO Inquiry Microsoft Internet Explorer 218 xl File Edit View Favorites Tools Help
21. OK click the mouse once and proceed to the next account Repeat the process until all accounts have been entered Bookkeeping 4 16 Me Step 7 Step 1 Step 2 In the event that an adjusting journal entry is required press Escape to return to the Command Center Place the arrow over General Journal Entry and click the mouse once Once inside the General Journal place the arrow over the first blank Acct and type 1 Then press Enter All of the account names and numbers will be shown Select the proper account by placing the arrow over it and clicking the mouse twice The account number and name will be inserted onto the General Journal To complete the entry input the amount of the adjustment and the offsetting account by repeating the above process After all pertinent information has been input place the arrow over Record and click the mouse once 2 Update the Chart of Accounts How is a school account created In Command Center select General Ledger by clicking on it Select Chart of Accounts Select General Ledger by clicking on it Select Chart of Accounts Step 3 Step 4 Step 5 Select the Liability tab to show all current accounts and categories see next screen Determine which category should include the account Use the category descriptions contained in this chapter For example if a new class account is desired use Account 2 2200 and create a specific account such as A
22. Oracle budget lines use the Oracle Budget Transfer Tool Access this tool through the Oracle applications login screen http erp csc cps k12 il us 8000 0A_HTML US ICXINDEX _appsprod _erp htm and then selecting the CPS PSB Budget Transfer responsibility Please refer to the Office of Management and Budget s budget manual for addition information File Edit View Favorites Tools Help Enter Oracle Address https erp csc cps k12 l us 8443 pls appsprodjcps_psb_transfer_pkg show_transfer pTransIdSelected SpFromBT10 08pToBTID 0 amp pFUnit 12410pFFund 1 158pFAccount 5340 7 budget line to Back gt OA A Asearch Favortes meda A GH Sf Z Failed to retrieve buttons from My Web Search g i transfer FROM Return to Portal Help De es CHICAGO PUBLIC SCHOOLS Budget Transfer Enter Oracle budget line to Budget Transfer Form transfer TO Sudget Transfer m Bu a To Budget Line Unit Eund Account a Year Unit Eund Account Program Grant Year neno fis fs3405 252501 oo0000 2006 fno fis 3405 254902 lt 000000 ag Enter amount Available 3 421 05 Available 0 00 to be transferred Amount 250 00 No comma s Example 10000 00 Justification Supply money needed for XXXX Status INCOMPLETE Transfer Number Enter reason for budget Show Funds Submit Request Submit Request amp Copy Save Request Upload Doc
23. Please refer to Appendix A for a copy of this form In order to control the distribution of School Expenditure Requisition Orders please number the forms in numerical order When writing a check related to a School Expenditure Requisition Order the requisition number should appear in the memo field of the check Purchasing 3 2 MR Step 3 Obtain approval lt All purchases from the school checking account must be PRE APPROVED by the principal and if necessary the LSC and Board of Education This allows the principal to monitor purchases and prevents schools from obligating themselves to prohibited purchases Approval is documented by having the principal LSC chairperson or Board signature on the expenditure requisition Non biddable Items e Under 25 000 only PO required e Between 25 001 75 000 Chief Purchasing Officer Approval Level Three competitive procurement process required which must include 3 price quotes which are secured by the User Group e Between 75 001 250 000 Board Report Required Level Two competitive procurement process required which must include 3 written proposals with price quotations which are secured by the User Group A scope of services is required also e Above 250 001 Board Report Required Level One competitive procurement process required which includes an advertised RFP RFQ solicitation which is managed by the Department of Procurement amp Contracts When is Boar
24. Prior to commencing the fundraising activity the Local School Fundraising Proposal must be completed and presented to the Principal AIO and LSC if applicable for approval The proposal requests the following information e Type of items being sold e Quantity of items being sold e Anticipated cost of items being sold e Anticipated revenue from selling items and an estimate of the profit e Inclusive dates of sale duration of sale e Proposed use of profits The faculty member designated as the sponsor of the fundraising event should prepare this proposal Required copies of the Local School Fundraising Proposal must be maintained at the school Another copy must be sent to the area office for final approval prior to the activity Step 2 Complete a School Expenditure Requisition Order for purchasing sale items e Upon receiving approval s the fundraising group must complete the appropriate School Expenditure Requisition Order This form should be presented to the School Treasurer regarding the items to be sold e Prior to delivery adequate physical safekeeping must be arranged for all goods ordered Step 3 Obtain products for sale e All purchases of goods for sale must meet the guidelines for disbursements through Internal Accounts e Expenditures for purchases must be made based on a detailed receipt from the vendor Please refer to Chapter 3 for specific payment guidelines e When possible money for the fundraising
25. Returnto Portal Help Address Line Zip Code Location Status Active C All 125 South Clark Street Chicago 60603 05011 0501 Area Elementary Instructional Office 1 Area Office 1 6323 North Avondale 228 Chicago 60631 05021 0502 Area Elementary Instructional Office 2 Area Office 2 6323 North Avondale Avenue Chicago 60631 05031 0503 Area Elementary Instructional Office 3 Area Office 3 6323 North Avondale Avenue 228 Chicago 606 05041 0504 Area Elementary Instructional Office 4 Area Office 4 2021 North Burling Street Chicago 60614 05051 0505 Area Elementary Instructional Office 5 Area Office 5 2021 North Burling Street Chicago 60614 05061 0506 Area Elementary Instructional Office 6 Area Office 6 2021 North Burling Street Chicago 60614 05071 0507 Area Elementary Instructional Office 7 Area Office 7 1750 W Warren Blvd Chicago 60612 05081 0508 Area Elementary Instructional Office 8 Area Office 8 54 N Hermitage Chicago 60612 05091 0509 Area Elementary Instructional Office 9 Area Office 9 1750 W Warren Blvd Chicago 60612 05101 0510 Area Elementary Instructional Office 10 Area Office 10 4655 S Dearborn 4th Floor Chicago 60609 05111 0511 Area Elementary Instructional Office 11 Area Office 11 6533 South Stewart Avenue Chicago 60621 05121 0512 Area Elementary Instructional Office 12 Area Office 12 4655 S Dearborn 4th Floor Chicago 60609 05131 0513 Area Elementary Instructional Offic
26. attend the CPS school the following year Q What happens if do not promptly deposit checks issued to our school from the State Comptroller s Office on behalf of a state agency A All funds received should be promptly deposited Many schools receive reimbursement from state agencies such as prom or graduation fees from DCFS or substitute reimbursements from ISBE The Accounts Receivable unit completes a quarterly review of all checks issued and not deposited If a check has not been deposited the Receivables Department will request the state void the payment instrument and reissue the payment to the Central Office for deposit Appendix G FAQ G 5 aaa Grant Acceptance Q How do schools accept grants A Any CPS unit that receives any type of grant gift or donation from a parent teacher organization or private entity must gain approval from the Chief Financial Officer CFO prior to using these funds An Oracle based grants gifts and donations system has been developed to obtain quick and easy approval This database includes imaging and a permanent record available to the school Effective November 2004 to comply with state laws the Board passed policy 404 3 http policy cps k 12 il us documents 403 3 podf related to the acceptance of grants Donations are to be itemized in the school s internal account survey Grant Acceptance questions may be directed to the Grant Acceptance E mail address at grantsaccepta
27. be returned to the School Treasurer at the end of the school year Appendix B Cash Receipts Revenue B 5 OO Payor List http cps k12 il us AboutCPS Departments finance forms Payor_ List xls Appendix B Cash Receipts Revenue B 6 eee School Usage Permit http cps k12 il us AboutCPS Departments finance forms School Usage Permit xls Appendix B Cash Receipts Revenue B 7 EO Oe ee Concession Sales Accounting Report http cps k12 il us AboutCPS Departments finance forms Consession Sales Accounting Report xls Appendix B Cash Receipts Revenue B 8 SSS ae Ticket Accounting Report http cps k12 il us AboutCPS Departments finance forms Ticket_Accounting Report xls Appendix B Cash Receipts Revenue B 9 O cma Perpetual Inventory Card Report http cps k12 il us AboutCPS Departments finance forms Perpetual Inventory Card xls Appendix B Cash Receipts Revenue B 10 MR INSTRUCTIONS FOR PREPARING PERPETUAL INVENTORY CARD AUDIT 160 A Sales of a continuous nature i e locks and other items sold by a school require the use of Perpetual Inventory Cards This card is an additional record keeping aid used in conjunction with the Concession Sales Accounting Report Teacher sponsors conducting periodic sales i e candy taffy apples etc may elect to use Perpetual Inventory Cards in additional to the Concession Sales Accounting Report when numerous transactions are anticipated controls are needed
28. e Secure all outstanding Teacher Receipt books All receipted money previously not submitted by teachers must be deposited immediately with the School Treasurer e On the date of the change of administration Treasurer s Receipts must be reconciled with bank deposits and cash on hand to account for all money not deposited at the end of the previous month but collected during the current month e The following documents must be reviewed and signed by the outgoing principal and the representative of the Area Instruction Office to indicate that the documents have been reviewed and are accurate Cash Account Internal Accounts Trial Balance and Reconciliation reports Reconciled Bank Statement Concession Sales Accounting Reports Fixed Asset Inventory Administration 1 7 I Incoming Principal e Request a transition audit from the Department of Audit Services Please call 773 553 1481 to schedule this audit e Study the financial statements and the most recent audit report If the report is not available at the school a copy should be requested from the Department of Audit Services The principal should review the audit report and ensure that the audit exceptions have been corrected e As of the date that the administration changes obtain signature cards from the school s depository institution prior to the transfer The new cards must add the name of the incoming principal and delete the name of the outgoing principal as
29. etc in accordance with the student fee schedule approved by the principal Revenue Generation 5 7 Step 4 Use fees for indicated purposes Collected fees must be used for indicated purposes Parents should be notified if a dramatic change in the proposed usage of fees is to occur wile Many schools collect their entire school activity fee at the beginning of the lt as school year instead of collecting smaller fees throughout the year A one f time collection process can make it easier on the students teachers and school clerk Below is a list of expenses that can be incorporated into a one time student activity fee Please note each fee must have its own account e Open Houses e Registration Fees e Summer Bulletins e Student Handbooks Folders e Student Council Fees e Attendance Awards e College Career Days e Yearbooks e School Newspapers Revenue Generation 5 8 re C Entertainment and Athletic Fees All admittance tickets and cash receipts received from ticket sales can be accounted for by using the Ticket Accounting Report Please refer to Appendix B for a copy of the Ticket Accounting Report Use the following procedures when conducting ticket sales for an entertainment athletic event Obtain Approval Pay Vendor for Event Conduct Ticket Sale Prepare for Ticket Prepare Acct Report Step 1 Obtain the Principal s approval The faculty sponsor of the event must complete a
30. events i e school stores gym uniform sales locks etc Bookkeeping 4 5 Vending Machine 2 6000 Internal Accounts listed under this classification are used to record the receipt and disbursement of money for continuous vending machine sales This classification does not include vending machines used by teachers only Teacher only vending machine money should be recorded in 2 9000 Non student use money Students should be restricted from using teacher only vending machines Board of Education Funded Programs 2 7000 Internal Accounts listed under this classification are used to record the receipt of funds from the Board of Education i e federal and state funded accounts This classification also is used to record disbursements for which a reimbursement or advance has been requested Please note money collected for student and family aid should be recorded in this classification This classification of accounts is the only one in which negative balances are acceptable for a short period of time i e the time it takes to receive the reimbursement Using the PAYOUT system reimbursements are generated in approximately 3 5 days Gifts Grants and Donations 2 8000 This classification is used to record all gifts and grants received and held by the school All disbursements from gifts grants and donations should be made directly from these accounts Non Student Money 2 9000 Internal Accounts listed under this clas
31. example and select French Club liability account and press ENTER The cursor should rest on the debit column awaiting an amount for input Input the amount of the NSF check and press ENTER Your cursor should rest at the box labeled Acct Press the TAB key to display a listing of accounts and select Checking Account press ENTER The cursor should rest on the debit column Use your mouse and place the arrow on the corresponding credit column and press ENTER The amount will automatically appear To record the transaction use your mouse and place the arrow on the RECORD icon on the bottom right hand side of the page click it once For other returned checks follow the above procedure How do l record bank charges Banks charge fees for services To properly reflect these fees a general journal entry must be prepared Using the same procedures as above in recording NSF checks select the General Fund account being debited and the Checking Account being credited Debit 2 1101 General Account Credit 1 1100 Checking Account How do I remove a stale check check outstanding over six months These steps should be performed after reconciling the Checking Account for the most recent month but before final reports have been printed A separate journal entry has to be made for each stale date check e From the Command Center window click the General Ledger icon e Click the General Journal Entry button e Change the date to the
32. fees and the dates of collection The composition of the committee should be based on the nature of the student fees i e activity fees graduation fees club fees etc When appropriate the committee should include representatives from the LSC parents teachers and the Student Council The school principal should always approve the suggested fees For example in the case of graduation fees a committee should be formed with representatives from the parents of the graduating students the teachers from the graduating class and the LSC The principal is responsible for approving the graduation fees Obtain approval for the fee schedule The principal should approve the fee schedule The fee schedule should be sent to the Area Instructional Officer Please refer to Appendix F for the policies pertaining to the establishment of fees and fee waivers Notify parents of fees The fee schedule should be sent to parents well in advance of collecting the fees General fees and their proposed uses should be indicated and itemized in the notification Collect fees from students Teacher Receipts or Payor Lists should be used to receipt money from students Specific fees collected from students must be deposited into the class or activity account for which the fee was collected Any general fees collected must be allocated and deposited into a specific class or activity account Account 2 2XXX or 2 3XXxX i e English Science graduation
33. for pick up of obsolete broken equipment by a qualified refuse hauler Step 3 Keep the Asset Transfer Disposal Form at the school What are the procedures if damage or loss to a building and equipment occurs Step 1 The principal must report instances of damage and or loss to the building or equipment on the Burglary Theft Property Destruction Report A copy of this form is included in Appendix E Step 2 Contact the police to report a theft or criminal damage of goods Step 3 The principal with the assistance of the Bureau of Safety and Security must investigate the damage and determine assessment of cost Bookkeeping 4 10 Step 4 Step 5 Risk Management assists schools in replacing school content items in excess of 2 500 following a loss Please send a copy of the Burglary Theft Property Destruction Report to The Bureau of Risk Management 125 S Clark 14 Floor GSR 125 Fax 773 553 3326 Any money collected by the school from the person s who caused the damage must be deposited in the school account 2 1104 Damage to Building and Equipment These funds may be expended to replace or repair equipment or to repair the building An asset that has been assigned to a teacher such as a laptop should be handled the same as any other property that is lost or stolen An incident report should be completed and the report should be sent to the Bureau of Safety and Security This asset should have been recorded on the Asset Equi
34. for the following purchases or financial dealings e Student participation in a school trip outside of the border of the U S or for trips using discretionary funds in an amount over 10 000 in accordance with the school trip policy Please refer to Appendix F for more information on the Student Travel Policy e Acceptance of any grant gift or donation e Hiring professional services in excess of 75 000 e Purchasing any item or service in excess of 10 000 Please refer to the Chicago Public Schools website http www csc cps k12 il us ourchasing board report templates html for the most current Board Report templates and forms Detailed information on completing the paperwork is included in Appendix F Purchasing 3 12 I F School Sport Officials The Department of Sports Administration and Facilities Management has revised how it pays school sport officials Starting with the 1998 99 school year high schools receive from the Board of Education a lump sum that covers the costs of school sport officials for each sport s home conference games during the season i e fall winter and spring This lump sum is electronically transferred to the school s checking account by the first home conference game of that season The school will use this money to pay school sport officials only Security non conference game officials and other sporting event personnel should be paid out of buckets and not out of the School Sports Officials
35. has expired the record is eligible for proper records disposal Schools may not throw away or shred any student or business related records CPS is required by law to obtain approval from the Illinois Local Records Commission of Cook County prior to disposing records Destroying any records prior to obtaining this approval is a Class 4 felony The CPS Records Management Staff will obtain all necessary approvals for records to be disposed of properly To dispose of records 1 Contact CPS Records Management Staff for a copy of the Records Management Procedures Forms and Retention Schedule 2 Review records and verify that records can be disposed pursuant to the most current approved Record Retention Schedule 3 Pack records and label boxes according to the procedure regarding disposal of records Complete the Record Disposal Form as required Provide CPS Records Management Staff with a copy of the completed form s by Fax or through CPS Distribution 6 CPS Records Management Staff will make arrangements with CPS Distribution for picking up boxes of records Please notify Records Management Staff if records found in your school are not currently listed on the approved Record Retention Schedule Records Management Retention and Disposal 6 3 ee B Administrative Offices and Departments oh General A To help the CPS administrative offices and departments follow CPS policies on records maintenance retent
36. in which goods services must be delivered All purchase orders must be paid in full by the liquidation date Most grant timelines terminate at the end of the fiscal year State grants and most federal grants end in August and September Q How long is a purchase order valid A Non grant related purchase orders are valid for a maximum of one year Grant related purchase orders have a Central Office pre printed final acceptable delivery date and date of cancellation usually sixty days after the grant ends If all invoicing and receipting is not completed by the cancellation date the responsibility for payment falls upon the unit for identifying a new budget line from which to make the payment Please avoid these issues by spending early and ensuring vendors follow CPS Purchasing procedures If a unit waits until the final days of a grant before completing a requisition the PO will state that goods services must be delivered within a potentially short time frame the vendor may choose not to fulfill the order Q What is the colored notice my unit received from Accounts Payable A Accounts Payable periodically sends out notices of cancellation to CPS units These notices are printed on color paper for attention purposes The notice indicates which of purchase orders will be canceled in sixty days Vendors receive the same notice Unpaid invoices from a canceled purchase order are the responsibility of the CPS unit to resolve Additional fundin
37. increase the price change must be re approved by the Principal and LSC and Board of Education if applicable For example if a purchase order is approved for 1 000 and the final price for the order is 1 160 the price change will have to be re approved because the price has increased more than 10 The approval for the price change should be shown on the face of the original School Expenditure Requisition Order Auto withdrawal from checking account should be allowed only if as part of a one year contract that requires periodic payments of a known dollar amount Phone orders for goods or services should be limited to emergency situations Please note that money should be allocated to the vendor in these situations Send payment upon good being received or once services have been rendered If the order is not an emergency please send a check to General Accounting for the amount of the goods or services Those funds will be loaded to the designated budget line and paid for by Accounts Payable Other than the CPS issued Procurement cards schools are not allowed to hold credit card or debit card accounts Some schools may participate in the Procurement Card Program in which schools are issued credit cards for the expenditure of small purchases Outside of this program schools are not allowed to hold a credit card in the school s name Step 5 Acknowledge delivery Keep track of the goods or services that have been received Goods o
38. last day of the month being reported e Enter the check number and the words Back to Cash in the Memo section e Debit the Checking Account 1 1100 for the amount of the check e Credit the account charged at the time the check was issued or credit the Bookkeeping 4 36 ee General Fund Account 2 1101 for the amount of the check e Click Record e Repeat the steps above until you have entered all of your stale dated checks e From the Command Center window click the Checkbook icon e Click Reconcile Accounts e Enter 1 11000 in the Account field e Change the Bank Statement Date to the last day of the month of the reconciliation e Enter the ending Bank Statement balance in the New Statement Balance box and press Enter e Click on each stale dated check e Click on each corresponding Journal Entry Deposit amount e The Out of Balance amount should equal zero e If so click Reconcile e Click Reconcile again Bookkeeping 4 37 MR C Other Bookkeeping Methods The Bureau of General Accounting fully supports the use of M Y 0 B in the Chicago Public Schools It is required by all CPS schools to use electronic accounting software If a school uses a different software program the school must maintain paper copies of the books of record as indicated in the manual bookkeeping section D Accounting Bookkeeping Service If the school Internal Accounts records are incomplete and or not up to date the school may use a
39. merchandise should be collected prior to the delivery of the goods in order to lessen the expense of unaccounted merchandise Often merchandise is unaccounted for when it is purchased prior to collecting the money for its expense Revenue Generation 5 19 ree Step 4 Conduct sale and deposit collections with School Treasurer e The record of inventory and sales for fundraising activities must be maintained on the Concession Sales Accounting Report Please refer to Appendix B for a copy of the Concession Sales Accounting Report e All collections from the sale must be submitted to the School Treasurer on the day of collection e Any event that prevents the teacher sponsor from submitting the receipts to the School Treasurer on the day of collection must be explained in writing e All collections must be receipted and recorded in a category specific to the fundraising activity Account 2 4XXxX e For all fundraising activities it is mandatory that an accurate record of all funds generated be maintained in the school s Internal Accounts Step 5 Finish sale and prepare final accounting reports e Within 10 school days of the last date of the fundraising activity the School Treasurer must submit to the area office a completed Local School Fundraising Accounting Report and the Concession Sales Accounting Report These reports give an appropriate accounting record along with an inventory of any remaining items The activity sponsor compl
40. of School Financial Services includes the Chief Financial Office Controller s Office General Accounting Risk Management Account Payable Treasury amp Debt Management School Business Services Payroll Services and Revenue Q What is the website for the Office of School Financial Services A The website for the Office of School Business Services is http www cps k12 il us AboutC PPS Departments finance index html Q What is the procedure for obtaining Oracle access A For iProcurement Budget Transfer or Gift Grants Donation access forms go to the Oracle Applications Website at https erp csc cps k12 il us 8443 OA HTML cps portal doc index html or contact the Office of Enterprise Financial Systems at 773 553 4101 for iProcurement and Budget Transfer form and For the Grant Gift Donation Application access request form go to the Office of Management and Budget website at httos erp csc cps k12 il us 8443 OA_HTML cps portal doc user_req forms Grant Access _Request doc Q What is a FEIN or EIN A Federal Tax ID Number Q What is Chicago Public Schools FEIN A 36 6005821 Each Chicago Public Schools unit shares the same FEIN as the Central Office and should never report a different number Appendix G FAQ G 1 ee Q How does the Department of Food Services calculate school vending machine funds A Vending machine payments represent an advance payment for the next fiscal year that is estimat
41. of the Teacher s Receipt or Payor List a The School Treasurer must make deposits at least once a week or more frequently as required Q Concession and ticket sales reports must be completed for all concession sales and ticket sales The expected receipts should be reconciled to the actual receipts a The school may have only one checking account Q Faculty and Staff should be aware that all persons collecting money from the students are held liable for the funds collected and are obligated to make restitution for unaccounted funds Money Handling 2 19 3 Purchasing General Guidelines All purchases must meet the requirements of the funding source The principal is responsible for all expenditures of school funds The school clerk must follow through with all approved expenditures Expenditures from cash on hand are prohibited except petty cash The principal must approve all purchases Additional approvals from Board Members must be obtained as required If the principal does not approve a purchase the principal is not obligated to reimburse the staff person who made the purchase The principal approves all purchases by signing the School Expenditure Requisition Order A detailed receipt should support all purchases All purchases should be made from General Ledger accounts with available funds Purchases should not be made in anticipation of future funds Purchasing 3 1 I A Purchasing Procedu
42. permits must be obtained prior to the scheduled activity Continuous repetitive use of the building or grounds including all Chicago Park District programs requires Board approval and must be documented by a license agreement a lease agreement or an inter agency agreement The principal and the LSC in accordance with the procedures and requirements specified on the back of the permit approve permit applications See Appendix B for an example of the School Usage Permit When collecting permit fees the following procedures must be followed Step 1 Obtain approval The school must obtain the following documents or approvals to lease a portion of the school building or school grounds e A completed School Usage Permit The back of the permit indicates the lease requirements e A copy of the licensee s insurance certificate The licensee must agree to provide at its own expense a standard commercial general liability insurance policy naming as an additional insured The Board of Education of the City of Chicago a body politic and corporate and its employees The minimum amount of the insurance policy must not be less than 1 000 000 and the minimum insurance requirement is 3 000 000 if the lease is subject to special requirements Special requirements e Swimming pool usage In addition to issuing a School Usage Permit the school must obtain specific approvals from the Board of Education in the form of a Board Report a
43. phone numbers B amp qaa Ny N Ah S An idea from a colleague NY Required record keeping Best practices Potential audit finding Introduction v I What is the best way to use this manual Use this manual as a way to ensure your systems are up to date and in line with current Board policies We have tried to identify only those requirements that are necessary for good financial record keeping If you have ideas or methods that work for you please inform us and we will try to pass along these ideas for the benefit of all If you are a new principal this manual has practical suggestions for setting up your accounts and tracking your receipts and expenditures This manual provides information on both manual and electronic bookkeeping Schools are encouraged to use the Internal Accounts software M Y 0 B to help manage their finances The Office of School Financial Services has purchased the M Y 0 B software and provides training to help you make the transition to electronic bookkeeping For more information about this software please contact the Controller s Office 773 553 2710 Where can locate this manual online The Insider s Guide to School Business and Internal Accounts may be located online at http www cps k12 il us AboutCPS Departments finance I Amanual Contact Information EB This manual is a work in progress and can be used as a source of informa
44. receiving the transfer should be larger The opposite should be true for the account from which the transfer was made If the journal entry was completed incorrectly and the account which was supposed to decrease has now increased the journal entry must be canceled or reversed If you have not exited M Y 0 B since the transaction was posted the transaction can be deleted and it will never appear in the ledger If the transaction was completed in a previous session the transaction must be reversed Please refer to Reversing Transactions or Deleting Current Transactions in the next section After the incorrect entry has been reversed the correct entry should be made using the previous steps Bookkeeping 4 27 a 6 Avoid Negative Balances In M Y 0 B the balances in the ledger accounts should be reviewed prior to writing a check to ensure sufficient funds Step 1 In Command Center select General Ledger Step 2 Select Chart of Accounts and the screen bellow appears Step 3 Select the Liability tab to display the account and the available balance Select Liability to display accounts Accounts List Parking Lot Income 2 1320 Building Lease Income 2 2000 School Specific Accounts This is the amount 2 2200 Class Accounts available to be spent 2 2210 Science from the account T U Language 0 8th Grade Math 2 2400 Spanish Class 2 2500 Activity Accounts 2 2510 Graduation 2 2520 Student Pictures 2 2530 Yearbook 7
45. shown on the screen 7 Change the fiscal year to the current fiscal year and change the last month of the fiscal year to June A From the Command Center click File then click Start A New Year and start a New Fiscal Year B Click the Continue Button click Continue Again C Click the Month Box then click June Note This screen shows the new fiscal year in process of change Do not type a year in the box This is the year the system is changing The process will not be complete until steps D and E listed below are completed D Click the Continue Button Click the Continue Button again E Click the Start A New Fiscal Year Button F Repeat steps A B C D and E until the proper fiscal year is processed 8 From the Command Center click the General Ledger Icon 9 Click the Chart of Accounts box then click the Print Icon Bookkeeping 4 15 Pe 10 11 12 Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Use the Printout to renumber the accounts listed on the last report from the old system Add the new accounts created to complete the Chart for your school Enter the Opening Balances into M Y 0 B M Y O B is a basic accounting software package for small businesses The Office of School Financial Services encourages all schools to use this software Each M Y O B package includes software diskettes a users manual and a video M Y 0 B also has an on line help function built into the
46. software The Business Managers are trained in M Y 0 B and can answer accounting related questions The Office of School Financial Services also schedules hands on training on a regular basis 1 Getting Started How are existing balances transferred from a manual system or other software to M Y 0 B Please Note Begin this process only after closing out the fiscal year or reconciling with the bank at the end of the month Some reconciling items might be outstanding at the time of your transfer to M Y 0 B Any adjustments can be entered into the M Y 0 B system as an adjusting journal entry Consolidating some accounts to conform to the new chart of accounts may also be necessary When modifying your Chart of Accounts please try to maintain the account numbers as presented This will facilitate uniformity and assist the Board s software support team in responding to questions and or problems In Command Center place the arrow over General Ledger then click the mouse once Select Chart of Accounts Select Asset Liability or Equity tab to show all current accounts and categories Once inside a tabbed area choose an appropriate account for input by placing the arrow over the account line anywhere and clicking the mouse twice You can only input amounts in accounts labeled detail When you are in the Account Information screen input the beginning balance of the selected account Place the arrow over
47. the schools Typical areas of responsibility include functions related to finances contracts facilities food services personnel management information technology security transportation and general school administration Other responsibilities may include dealing with school Internal Accounts budgets purchasing position control payroll inventory subsidized meal applications records maintenance and other non instructional related duties Administration 1 5 C amamma Internal Controls Internal control should be built into the infrastructure of each school When controls are integrated with operational activities and a focus on controls has been instilled in all personnel the result is better control with minimum incremental cost Schools may want to create written policies and procedures guidelines including formal job descriptions detailing responsibilities and describes management policies standards of ethical behavior acceptable practices and conflicts of interest Implementation of Control Objectives e Appropriate authorization proper signatures and system approvals e Segregation of duties e Adequate documentation and records e Independent checks on performance Documents and records Documents should be designed to facilitate collection of all relevant information They should provide space for proper authorizations receipt of assets etc and should be prenumbered account for all documents reducing
48. 0 B Accounting Card File Entry File Edit CommandCenters Setup Reports Window Help Card File Card Type Indicate the Card Type For vendors include laddress so checks can be mailed if desired C Company Type in the person s name Fax Identifiers o gt T Salutation Optional Information such as Room IX Track Sales History Select New Click OK all information is correct Bookkeeping How is a transaction deleted or reversed Deleting transactions is necessary if a mistake is made when posting an entry to an incorrect account or the amount entered is incorrect The following steps must be followed to complete these journal entries Please note that M Y 0 B does not allow deleting a transaction after the program is exited The transaction must be reversed Step 1 Select Transaction Journal Command Center Purchases Select the Transaction Journal to see transactions j Balance Sheet Profit amp Loss i i i i i i i i on pp a Te HSS General Transaction Journal i Enky Joumal Step 2 Display the period that the transaction occurred by typing the correct range of dates Step 3 Select the incorrect transaction by clicking the arrow at the left of the date Bookkeeping 4 33 Transaction Journal Display the period for which the transaction Date IDH t Debit Credit Job 6 26 97 Purchase of Computer for Science Club GJO0000T
49. 0625 RS1 Resolution Concerning Misappropriated or Misused School Funds http policy cps k12 il us documents 406 1 pdf Appendix F Policies and Procedures F 4 ee Imposition of Charges on Returned Payment Instruments http policy cps k12 il us documents 403 7 pdf Appendix F Policies and Procedures F 5 ee Investment Policy http policy cps k12 il us documents 403 1 pdf Appendix F Policies and Procedures F 6 ee Debt Management Policy http policy cps k12 il us documents 404 1 pdf Appendix F Policies and Procedures F 7 O_O aaa Student Travel http policy cps k12 il us documents 604 3 pdf Appendix F Policies and Procedures F 8 ee Reimbursement for Work Related Expenses http policy cps k12 il us documents 507 1 pdf Appendix F Policies and Procedures F 9 ee Purchasing Board Report Procedures http Awww csc cps k12 il us ourchasing board_ reports html http Awww csc cps k12 il us purchasing ppts Board Rule Changes 11 01 04 ppt Appendix F Policies and Procedures F 10 O_O aaa Code of Ethics http policy cps k12 il us documents 503 1 pdf Appendix F Policies and Procedures F 11 ee Maintenance and Disposal of Assets http policy cps k12 il us documents 401 9 pdf Appendix F Policies and Procedures F 12 O_O aaa Guidelines for Establishing Elementary and High School Student Fees http policy cps k12 il us documents 408 2 pdf A
50. Account Step 1 Receive payment from the Bureau of Payroll Services The Department of Sports Administration and Facilities Management assigns school sport officials for all conference league contests Based on these assignments the Bureau of Payroll Services sends to the school an electronic transfer of funds to cover the season s sport officials for all home conference games This electronic transfer of funds goes directly in the school s checking account and will occur by the season s first home conference game The school records this receipt of funds with the following journal entry Example Debit X XXX Checking Account Account 1 1100 Credit X XXX School Sport Officials Account 2 701 1 To receive funds for school sport officials each school must enroll in the EDI Electronic Data Interchange Program sponsored by the Bureau of Accounts Payable Please contact Accounts Payable for a copy of the EDI Application Step 2 Pay the school sport officials Each school must only use this money to pay sport officials by writing a check to the sport officials from the school s Internal Accounts Sport officials should not be paid in cash When a check is written to the sport official the school must record this disbursement with the following journal entry Example Debit X XXX School Sport Officials Account 2 701 1 Credit X XXX Checking Account Account 1 1100 Elementary schools do not receive reimbursement for
51. Appendix A This report gives detailed information about the cash receipts expenditures and inter fund transfers within the school s Internal Accounts If the school is using an automated system such as M Y O B to record its Internal Accounts activity copies of the computer generated reports should be submitted in place of the Internal Accounts Monthly Summary LSC members should review the following reports on a monthly basis e Internal Accounts Monthly Trial Balance e Bank Statement e Trial Balance Summary e Reconciliation Report LSC approval for the budget shall be obtained during the budgeting period or planning process or as needed during the school year If your LSC desires to increase not decrease these Internal Account approval levels the school must maintain a copy of the formal approval on file in the minutes of the LSC meeting for audit purposes This approval with the proper vote should be reflected in the minutes of the LSC meeting Purchasing 3 4 I Who else can be consulted for advice on purchases The Department of Procurements and Contracts can be consulted if more information or further advice is needed This department can provide further assurance that the purchase is appropriate Step 4 Place order for goods After the purchase order has been approved the order for the goods or services should be placed If the cost of goods compared to the approved purchase order is greater than a 10
52. Chart of Accounts is used with the M Y 0 B software The Chart of Accounts can be modified and adjusted to accommodate each school s specific requirements Your Chart of Accounts has this basic structure and can be modified to include your specific activities and categories The Chart of Accounts is shown in Appendix A Assets 1 0000 An asset is anything of monetary value that a school owns This major category includes all of the school s resources including cash investments and fixed assets The sub categories are included to further identify usable types of assets Cash 1 1000 This category includes all assets that are readily available to the school and are liquid Cash on hand the school checking account and petty cash are all included in this category Bookkeeping 4 4 Investments 1 3000 This includes all other non liquid cash investments Items such as savings accounts certificates of deposit money market accounts and money market funds are investment items Fixed Assets 1 4000 This category includes any item purchase that has a useful life of at least a year that is purchased using student money and or school generated money The fair value of any donated furniture or equipment is also included in this category Revenue Expense Accounts 2 0000 This category is used to record cash receipts by their source i e fundraising or lease income and or the group entitled to use the funds school specif
53. ID should be written in BOLD letters across the face of the original and the duplicate copy left intact in the receipt book 3 Record interest income checking investment accounts If your school receives interest income as a credit to the investment please make the following journal entry Debit 1 3XXX Investment X XXX Credit 2 13XX Interest Income Investment X XXX If your school receives interest income from an interest bearing checking account please make the following journal entry Debit 1 1100 Cash X XXX Credit 2 1310 Interest Income Checking X XXX 4 Record disbursements write checks All disbursements using the school checking account must be recorded in the journal at least weekly The school must ensure that the funds are available in the bank in the specific activity account Accounts must not be overspent creating negative balances unless these accounts are awaiting reimbursement from budget lines Note Per Board Policy with the exception of sports officials no personnel or consultant should be paid from Internal Accounts Bookkeeping 4 7 E aaa What about petty cash For the best control and documentation of all Internal Account money cash transactions should be limited When it is not practical to use checks schools are permitted to use petty cash accounts Examples of petty cash usage include postage stamps student carfare reimbursements for money lost in vending machines et
54. Local School Fundraising Proposal and obtain the principal s LSC s and Area Instructional Officer s AIO signatures as an indication of approval Please refer to Appendix C for a copy of the Local School Fundraising Proposal If an outside performer is to be used the faculty sponsor is responsible for completing a School Expenditure Requisition Order form as well Please refer to Chapter 3 for purchasing instructions Step 2 Prepare for ticket sale e Tickets for all functions must be pre numbered Please refer to Chapter 2 regarding where you can obtain pre numbered tickets e Each group of tickets is provided to the teacher sponsor in a numbered sequence e All tickets purchased from an outside firm or printed by the school must be delivered to the School Treasurer Step 3 Conduct ticket sale e The School Treasurer is responsible for maintaining physical control of all admittance tickets This responsibility can be delegated to an administrator as long as the duties are not assigned to individuals or departments that utilize the tickets It is a good practice to have different people collecting the money selling the tickets and reconciling the account e The teacher sponsor s is responsible for maintaining records on how much money is collected for the event This can be done by using pre numbered tickets Example 100 tickets were sold at an event Each ticket cost 1 00 therefore 100 00 must be submitted to the S
55. PARATION OF SCHOOOL TREASURER S RECEIPT A school Treasurer s Receipt is to be prepared immediately upon receipt of all monies by the School Treasurer 1 All receipts should be completed in ink showing the current date cash amount check amount account to receive credit the name of the person making the deposit Teacher s Receipt number or List of Names on File and the treasurer s signature 2 All receipts must be completed in duplicate with an original issued to the person from whom the funds were received and the duplicate kept intact in the receipt book 3 All receipts must be issued in numerical sequence 4 When it is necessary to void a receipt the word VOID should be written in BOLD letters across the face of the original and the duplicate copies of the receipt and both copies left intact in the receipt book 5 The reverse side of the last duplicate school Treasurer s Receipt covering those funds that are being deposited should be completed in its entirety when the School Treasurer is making a deposit Appendix B Cash Receipts Revenue B 3 en aaacasa Teacher s Receipt http cps k12 il us AboutCPS Departments finance forms Teachers Receipt xls Appendix B Cash Receipts Revenue B 4 C aaa INSTRUCTIONS FOR PREPARATION OF TEACHER S RECEIPT Teacher s Receipts must be prepared for all monies collected by school personnel who are authorized by the Principal to make such collections H
56. Reset transfer request Show funds available Click the Submit Request Button to complete the budget transfer request Appendix D Cash Advances Payables and Purchasing D 12 ee Reimbursement Form http cps k12 il us AboutCPS Departments finance forms AP_Reimbursements pdf Appendix D Cash Advances Payables and Purchasing D 13 ee Letter of Funds Distribution Request http cps k12 il us AboutCPS Departments finance forms AP Letter of Funds Distribution Request pdf Appendix D Cash Advances Payables and Purchasing D 14 ee Appendix E Assets and Equipment e Furniture and Equipment Register e Asset Transfer and Disposal Form e Instructions for Completing the Asset Register and the Asset Transfer Disposal Forms e Burglary and Theft Report Appendix E Assets and Equipment E 1 ee Furniture and Equipment Register http Awww cps k12 il us AboutCPS Departments finance forms Asset Register xls Appendix E Assets and Equipment E 2 C O mrama Asset Transfer and Disposal Form http www cps k12 il us AboutCPS Departments finance forms Asset Disposal Transfer Form xls Appendix E Assets and Equipment E 3 ee Instructions for Completing the Asset Register and the Asset Transfer Disposal Forms http www cps k1 2 il us AboutCPS Departments finance forms Asset_ Register Disposal_Instructions pdf Appendix E Assets and Equipment E 4 ee Burglary and Thef
57. S Chart of Accounts e PO Invoice Requisition Inquiries e Vendor Inquiries e CPS Location Inquiries e Budget Inquiries To obtain Oracle Access for Web Inquiry Tool go to the Oracle Applications Website at https erp csc cps k12 il us 8443 OA HTML cps portal doc index html or contact the Office of Enterprise Financial Systems at 3 4101 Please refer to Appendix D for additional information regarding the Web Inquiry tool Purchasing 3 18 ee J Checklist and Chapter Review Q School Expenditure Requisition Orders for all purchases must be approved signed by the Principal and LSC if applicable Q The school clerk or designee must document all expenditures except petty cash a All checks must be posted to the Cash Disbursements Journal a Detailed receipts must be maintained for all purchases a Acknowledgment of delivery of goods or services should be indicated on the receipt and if applicable receipted in the online purchasing system a A school must not violate articles of the prohibited expenditures list Q Expenditures are for the benefit of the students a Contracts must be approved signed by all necessary parties Purchasing 3 19 4 Bookkeeping General Guidelines The School Treasurer as designated by the principal is responsible for recording all receipts disbursements and other transactions in the General Ledger The following books of record are required for bookkeeping Cash R
58. Step 5 Step 6 Step 7 Step 8 Edit Accounts Account Information C Header Account Non Postable acsification Liabiht Account Number Account Hame Biology Class Opening Balance 0 00 Curent Balance c 0 00 Linked Account for Unlinked How is an account edited In Command Center select General Ledger by clicking on it Select Chart of Accounts Select Asset or Liability tab to show all current accounts and categories Select the Account you want to edit The account is highlighted Click on the arrow to show the account information Click on the Account Name to edit Example Math Type in the new account name and click on OK Example 8th Grade Math The changed account name should show in the Accounts List When all changed accounts have been edited click on Close Bookkeeping 4 19 3 Record income receipts from teachers and deposits to the bank How are receipts deposited from the Treasurer s Receipt Book Step 1 In the Command Center click on Make a Deposit M Y 0 B Accounting Command Center a File Edit Command Centers Setup Reports Window Help Steve Bock School 6 24 96 In the Command Center Click on Make a Deposit Make M Y 0 B Analyst Reconcile Accounts she ea p Deposit Io a ae Cah Fon Transaction Joumal Step 2 Switch Account from Checking Account to Cash on Hand Cash on Hand will be deposited into Checking when bank deposit is made S
59. a cies ed cn et cea ane acetates acne cca eens tte eee 2 1 A Money Handling POC COUN Ss ii2cs scccciatidece einteceebi ethene eee toca 2 2 B PUA UNG ips escocccccsscuiiaeatartece a a ome E coat eae A ERa ETN 2 13 C TINVOSINMGTINS 62 6 enina a e a EEE EREE SEES 2 15 D Loans and Accommodations from School Internal Accounts cseeeee 2 18 E Checklist and Chapter REVIOW cccccecceeceeceeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeesenaaeeees 2 19 3 UC MUS ING ssie e AA san enrgetaxeresant censeonareagecetset 3 1 A Purchasing Procedures siniiricsniescectecassraas bleed annaa aaeain 3 2 B Approved Ex PSmeture ss acdecvncias ss cenes dart cansseenconeania cee nnesssaceens esvagesstediausensenainane 3 8 C Prohibited Expenditures 3536 5 25cccpn creas sccte edese eid alseeee ete eaceee aera Giees 3 9 D Contracts scenene a a a e a a 3 11 E Board 2121S 9 eeeneen ene ne ene rece eer ee er eee anaa 3 12 F S ho l Sp rt OG AlS aaan eiren E SEEE EREE NETE eT 3 13 G Reimbursement and Advances from School Budget Line cceeeee 3 15 H Electronic Data Interchange EDI ccccceeeeeeeeeeeeeeeeeeeeeeeeeeseseeneeeeeeeeeenees 3 18 lk Web INGUI cinne a arenas coated ENTE AASER EN 3 18 J Checklist and Chapter RevieW sssessserssssssneesserrrserrrrnnrenrnsserrnnnertnnnnsrrrnsnet 3 19 4 Bo kk spINg Sree cattcertea tect raaiatec she rcet i ceaateavetegeni dr dernebenesccreacecnm eG ecttcomeatetne 4 1 Table o
60. act with the assistance of the Law Department Obtain Board approval The Board President signs the final contract with the lessee Receive lease income from Lessee Lease income is sent directly to the school from the lessee Deposit all lease income into the school s Internal Accounts and record the revenue in the appropriate General Ledger Account The school can decide how to use the funds within appropriate guidelines If the lease activity requires school personnel follow the steps outlined for additional staffing Send Verification of Receipt of Revenue to the Bureau of Real Estate After the school receives rental income for the month within three 3 business days remit to the current real estate management company a Receipt Memorandum acknowledging receipt of rental income Please refer to Appendix E for a copy of the Receipt Memorandum Revenue Generation 5 6 Step 1 Step 2 Step 3 Student Activity Fees Obtain Notify Collect Use fees approval parents fees for for of from indicated schedule fees students purpos Schools may collect activity fees from students to cover educational costs exceeding their school based budget Activity fees for required events may be waived for students who qualify and completed the Student Fee Waiver Form Please refer to Appendix A for a copy of the Student Fee Waiver Form The school should form a committee to determine the amount of the
61. activity accounts are acceptable as long as both activity sponsors have approved the transfer However loans should be repaid within the same school period Frequent loans indicate that the allocations may not be appropriate and may require review Negative balances may occur in reimbursable Board of Education accounts 2 7XXX This may occur when a school is awaiting reimbursement from the Board of Education The same negative balance in Board of Education accounts must not continue for two consecutive months Negative balances in non student fund accounts represent unauthorized subsidizing of non student activity and are prohibited How do l prevent negative balances SEZ If the principal requests the School Treasurer should determine the available balance as provided on the School Expenditure Requisition Order This ensures that money is in the account prior to the expenditure S This may prevent making disbursements out of General Ledger accounts when funds are not available 8 File reports monthly The following reports are required monthly e Balance sheet e Summary Trial Balance e Cash Disbursements Journal e Cash Receipts Journal e Reconciliation Report Bookkeeping 4 12 The following reports are to be sent to the area monthly e Balance Sheet e General Journal e Summary Trial Balance e Reconciliation Report with a copy of the bank statement 9 Keep financial records The school must maintain paper copies o
62. adceemicesenratresccoascc naan duanild peacecudeatasieresiaraniemeantececcetateneaaes 3 School Cash Advance Reconciliation sc ssiccccsdecncesesenotssansbotsnsatecsnermnusseseerdecstdeedsaabiens 4 WU aro La E E ca caesiacansscneetsceeeagieseueasturensieariueands 5 Oracle Budget Transfer TOO lsc cceierccns suse cecscascnetsenaceaneateaunnamrean aaencetecasaatinnannie 12 Reimbursement FON sictcssncssarciehsadeaceysashanne been tadenantmesrdcnseeenatQeaeahoncenteca gies eteeaters 13 Letter of Funds Distribution Request escecccceeeeeeeeeeeeseeeeeeeeeeeeeeeeenenenseeeeeeens 14 Appendix E Assets and Equipment 2 ccccseeeeeeneceeeeeeeencneeeeeeeeeeeeeseseeeeeeeneneeeenees 1 Furniture and Equipment Register siicisissseccsccenarsees Acserdiceceaenctjuesticenhacenseuniscncantecantad 2 Asset Transfer and Disposal Form 22 eeeccccceeeeeeeeneneeneeeeeeeeeeeeeeeeeeeeeeeeeeenees 3 Instructions for Completing the Asset Register and the Asset Transfer Disposal OE e E E E beens eeannete 4 Burglary and Theft Repott ccecccceeeessccceeeeseceeeeessaeeeseeaaeeeseeeeeeeeesesaaeeeeeseaaeeees 5 Appendix F Policies and Procedures s sesssssessssriirrrsttettrirrittttetttrtrrinnnnsssstitnnnnnnnnne 1 Policy Regarding Financial SUperviSion ccccecceeeeeeeseeeeeeeeeeeeeeeeeeeeeeeeeeeaeeeeeee 2 Policy on Educational GIGS isc sinccceseststceidacidteeisereintanederadunn tarda eieraeigeemeiees 3 Amend Resolutio
63. administrative managers The information we receive from you helps shape not only how we create programs for the schools and district but also how CPS implements financial and business policies This manual is one of the numerous tools provided to the schools to facilitate business functions Please feel free to contact our office at 773 553 2710 for additional information manuals questions or feedback Sincerely John Maiorca Chief Financial Officer Chicago Public Schools Introduction i C amamma Introduction The Board of Education of the City of Chicago believes that the responsibility for each Chicago public school rests with its principal Keeping with that policy the Office of School Financial Services prepared this manual to help schools manage their Internal Accounts efficiently and effectively The School Code of Illinois Section 10 20 19 3 gives the Board the authority to establish rules and regulations for collecting spending and safeguarding funds generated by the schools Furthermore the Board of Education cites school Internal Accounts as a fund group in its annual report We are required by GAAP General Accepted Accounting Principles to fully disclose the value of school Internal Accounts at the end of each fiscal year This manual is one in a series of documents being developed to help principals manage the business aspects of running a school Guiding Principles Five guiding principles have been identi
64. ance be less than 10 for audit purposes the requisition form should be retained at the school It may be easier to track the status of reimbursements if sub accounts are established for the specific funding source This enables a school to monitor both the program and required reporting Purchasing 3 17 I H Electronic Data Interchange EDI Electronic Data Interchange EDI is a system whereby funds are transferred electronically via wire transfer directly into your school s checking account from CPS checking account Using EDI accelerates the availability of funds by eliminating the need for checks to be issued thereby eliminating the waiting time for checks to arrive and clear while also eliminating the possibility of check loss or theft Use of EDI is mandatory for all schools Any and all budgeted amounts that are non payroll related can be sent via EDI These include but are not limited to reimbursed expenses payments to Local School Councils teacher instructional supply monies and reimbursement for purchase orders To participate in the EDI program please contact Accounts Payable If you have additional questions please contact your Area Business Manager I Web Inquiry The CPS Web Inquiry application in Oracle provides current purchasing and budget information This tool also performs the following functions e Account translations form Legacy combinations to Oracle and vice versa e Funds Lookup e CP
65. assets you should update your asset register immediately Afterward please E mail the updated version to Internal Accounts at InternalAccounts cps k12 il us so Finance can upload the updated register to the online survey Q How do I handle asset equipment disposal A Please follow the procedures in the Maintenance and Disposal of Assets Board Policy http policy cps k12 il us documents 401 9 pdf As part of the procedures please complete the Asset Transfer Disposal Form and send it to General Accounting Also remember to delete the item off the Asset Register Q Does the survey have to be completed all at once A No Every page you complete can be saved individually If you need to quit while you are working simply save the page you have been working on and then log off The next time you log in the saved information will be available for you to continue work Appendix G FAQ G 10 ee Internal Accounts Manual Q How do get training for Internal Accounts A School Business Services offers Internal Accounts training as well as training in other fiscal areas Please visit the training website at htto vww quia com pages sbstraining html In addition fiscal training manuals are located on the web at http www cps k12 il us AboutC PS Departments finance schoolbusiness html Q Why do I have to keep paper copies of all the reports as well as back up diskettes or CDs A The current Internal Accounts manual requi
66. bank fees are recorded in M Y 0 B using general journal entries Please refer to the Money Handling Section for additional information For example assume an NSF check was written to your school for a given activity such as the French Club The entry to record the receipt of that check would be to debit Cash on Hand and credit the French Club liability account The purposes for recording an NSF check are 1 to reduce the cash balance in the checking account to its proper amount and 2 to reduce the French Club liability account to its proper amount This allows the school clerk to monitor the spending of the teacher in charge of the French Club and preventing overspending Step 1 At the Command Center select the General Ledger icon with your mouse and click it once Then select the General Journal Entry icon to gain access Step 2 The date defaults to the current date Change the date to reflect the date of notification or the last date in the month of notification Step 3 The next item input is the Memo or reason you are making the journal entry Assume someone other than you will review this transaction Enter a concise and precise description making sure you include the payor s name Then press ENTER Bookkeeping 4 35 Step 4 Step 5 Step 6 You are ready to input the general journal entry Your cursor should rest at the box labeled Acct Press the TAB key to display a listing of accounts Use the
67. c The amount of money in this account should be limited and based on your school s need but must not exceed 100 at any time Writing a check from the school s Account 1 1300 to the person responsible for the petty cash fund or to Cash starts petty cash funds The money is deposited in a safe place such as a locked cash box or drawer An accounting of all money in the petty cash fund must occur Receipts must be submitted for cash reimbursement or a voucher must track the use of the funds The amount of cash on hand and the amount of receipts and vouchers must be equal to the amount of money originally used to start the petty cash fund When the amount of cash on hand is sufficient the vouchers and receipts should be totaled The amount of vouchers and receipts must be equal to the amount of the cash spent A check should be written for the total amount of cash spent The vouchers and receipts should be removed from the petty cash box and filed with the other receipts when the new cash is added The cash on hand must be equal to the original amount Please refer to Appendix A for the Petty Cash Reconciliation form 5 Record fixed asset purchases What fixed asset records should the school maintain on the Equipment and Furniture Register Schools must maintain an inventory of all equipment and furniture regardless of the funding source Permanent items costing 500 or more and having a useful life of more
68. cate remains in the receipt book e The receipt must include the amount of money the account name the account number to be credited the source of the money and the date e The School Treasurer must sign the Treasurer s Receipt e fa mistake is made the Treasurer s Receipt must have VOID written on both copies of the receipt and left in the receipt book Money Handling The Treasurer s Receipt should be pre numbered and include the name and address of the school Note Treasurer s Receipt Books may be ordered through the Purchasing system Teacher s Receipt Teacher s Receipts must be prepared for all money collected by school personnel who have authorization from the principal However when group participation is anticipated i e field trios workbooks etc a Payor List of names is acceptable in lieu of duplicate receipts Please refer to Appendix B for a copy of the Teacher s Receipt Teacher s Receipts must show e The date the money was received e The amount of money received and whether it was cash or check e The purpose of the collection e The person from whom the money was received e The signature of the recipient on all receipts All receipts must be prepared in duplicate with the original copy issued to the person from whom the money was received and the duplicate copy kept intact in the receipt book e Receipts within the book must be issued in numerical sequence e When it is nece
69. ccount 2 2235 Select New to open Account Information Bookkeeping 4 17 M Y 0 B Accounting Accounts List Edit CommandCenters Setup Reports Window Help Account Name 2 0000 Activity Accounts 600 General School Accounts 2 1100 General Funds gt 2 1150 Student Fees gt 2 1200 Investment Income gt 2 1210 Checking Account Interest gt gt Select Liability tab to show all current accounts and categories 2 1220 Savings Account s Interest 2 1230 Money Market Account s 2 1240 CD Interest 2 1300 Lease Income 2 1310 Parking Lot Income 2 1320 Building Lease Income 2 2000 School Specific Accounts 2 2200 Class Accounts 2 2210 Science 2 2220 Language Sth Grade Math Determine which category the Account should be included in Select New to open Account Information 2 2520 Student Picture After all accounts have been established click on Close Step 6 Type an Account number in the category and press TAB Example 2 2235 Step 7 Type a descriptive title for the account Example Biology Class Step 8 Click on OK The new account name should show in the accounts list Step 9 When all new accounts have been created click on CLOSE Bookkeeping 4 18 Type in an Account number in the category and press TAB Type a descriptive title for the account Opening balance should always be zero to start Click on OK Step 1 Step 2 Step 3 Step 4
70. ceed a cumulative total of 3 000 per school if the school population is 1 000 students or more Any excess profits should be transferred to the General Fund e Fundraising at the end of the year will roll over to the next school year LSCs cannot operate at a deficit LSC funds may not exceed above listed amounts Note LSC fundraising budget for fiscal year is reduced by the dollar amount of the rollover funds c Permissible Operating Expenses The LSC is permitted to raise funds for its own operating expenses These expenses nay include e Advertisements for Principal Vacancies e Stationary and general office supplies e Copying reproduction services and postage e Reasonable expenditures for transportation to LSC school meetings or workshops e Reasonable expenditures for refreshments at meetings e Reasonable expenditures for registration fees for workshops seminars and conferences attended by LSC members d Impermissible Operating Expenses The LSC cannot raise funds for the following operating expenses e Costs associated with seminars workshops and conferences other than registration fees e Meals and travel expenses beyond the reasonable expenditures for transportation to LSC school meetings or workshop e LSC campaign related expenditures e Stipends to LSC members for services rendered e Any payments made in violation of the CPS Code of Ethics e Guidelines for Conducting LSC Fundraising Activities The followi
71. cessary to demonstrate compliance with finance related legal and contractual provisions extensive introductory material and a Statistical section that gives more detailed information on Chicago Public Schools and the local environment Appendix G FAQ G 2 ee Q What is a PAFR A The Popular Annual Financial Report PAFR presents the financial information in a way that is more understandable to parents taxpayers and civic leaders Q Where are the CPS annual reports published A The annual reports may be located online at http www cps k12 il us AboutCPS Financial_Information CAFR cafr html Copies of the CPS annual report are available by contacting the Controller s Office at 773 553 2710 Accounts Receivable Q Where are Central Office payments sent A The Central Office has one payment center Accounts Receivable 125 South Clark 14 Floor GSR 125 General interoffice mail routes are effective safe and fast for sending payments personal visits are not required All payments should be identified by check number account or dollar amount to verify deposit dates The Central Office bank account accepts AR endorsement of payments made payable to any school unit name or Central Office name It is acceptable to send the Central Office a check made payable to a school for a deposit Q If a payment is sent to the Central Office for deposit who is the contact to request and verify funds are loaded to a s
72. chool Treasurer e Inthe event of a discrepancies or revenue shortfalls the teacher sponsor is responsible for making up any difference Revenue Generation 5 9 ee Step 4 Prepare Ticket Accounting Report e The teacher sponsor prepares the Ticket Accounting Report for each activity e The report and any unsold tickets must be delivered to the School Treasurer immediately after the event Prepare a statement explaining lost and unaccounted for tickets Keep a copy for your records e The School Treasurer is responsible for verifying the information contained on the Ticket Accounting Report reviewing it with the principal and securing his her signature for approval Any discrepancies shortages must be clarified and or explained in writing and attached to the report prior to its approval e The School Treasurer must retain on file the original copy of the Ticket Accounting Report as well as a copy of the Local School Fundraising Proposal with the unsold tickets A duplicate copy can be returned to the teacher sponsor Step 5 Pay outside vendor for event if applicable e Write a check to the outside vendor Revenue Generation 5 10 ree D Graduation The key to planning a successful graduation is to begin with a solid budget and stick to it Ensure that enough is collected to cover all expenses Any over expense optional or mandatory will be an audit exception e Fees for graduation should be established well in adva
73. count to be credited in the Internal Account system All funds from Board Funded programs should be recorded in the account series 2 7XXX Write the name of the account and number to be credited on the EDI notification printouts The printouts of the EDI notification the individual budget lines and the Fl24 or FI60 are documentation for the EDI transaction and should be maintained as such Record the transaction in the Internal Accounts System using the following steps Click the Checkbook Icon on the Command Center window Click the Make a Deposit box Enter the date of the transaction in the Date Box Press TAB and enter the total transfer amount to your checking account in the Amount Box Press TAB and enter the words Chicago Public Schools in the Payor Box Type EDI in the Memo Box Press TAB and enter the account number and amount to be credited to each account number in the designated fields in the Allocation Account Box Click the Record button to complete the process Money Handling I If a check is written in anticipation of receiving reimbursement from a budget line an account in 2 7XXX should be established to reflect that budget line and the check should be charged to that account Schools should make an effort to work with Accounts Payable in documenting and tracking the process We appreciate any suggestions you submit on improving the systems If you have further questions please contact yo
74. counts iProcurement requires the school to create online requisitions purchase orders and receipts Invoices should be address to Accounts Payable If a reimbursement is required through iProcurement a letter explaining the circumstances should be submitted to Accounts Payable along with supporting paperwork and documentation The iProcurement reimbursement process cannot be used to avoid CPS restrictions on the use of consultants and personal service providers Step 1 Request funds using PAYOUT Using PAYOUT allows for receipt of reimbursement funds without needing to submit supporting documentation to Accounts Payable for pre approval All backup documentation such as receipts original invoices and canceled checks must be retained at the school Reimbursement is limited to 500 per person per month 500 per transaction 5 000 per month Note Please refer to the PAYOUT manual for the latest dollar amounts Reimbursements cannot be used for Oracle account codes 54105 54125 54130 51XXX 52XXX all services and salary and salary related expenditures Any requests in excess of the limits outlined above must be processed through iProcurement and supporting documentation submitted accordingly Purchasing monitors 500 expenditures Units in violation of the 500 limit will be cut off Please refer to Appendix F for the CPS policy on reimbursement for work related expenses Cash advances are limited to e Travel cash advances for student
75. d renewed or refunded at some future date Examples of liabilities include but are not limited to amounts owed to vendors for items purchased for Internal Accounts purposes and amounts i e graduation fees that are to be refunded to students Bookkeeping 4 2 ee What are a Debit and a Credit Debit For an asset i e cash investments a debit is adding value to that account For a liability i e class and school accounts a debit is removing value from that account Credit For an asset a credit is removing value from that account For a liability a credit is adding value to that account What are books of record e A journal is a chronological listing of all transactions such as deposits withdrawals and transfers A record must be made in the proper journal every time cash is received or a check is written Schools must keep a Cash Receipts Journal and a Cash Disbursements Journal e A ledger contains the account balances for all the accounts at each school The journals show the daily transactions for all accounts but the ledger shows the total changes affecting each account and the account balance in one place Transferring data from a journal to the ledger is referred to as posting A school must keep a General Ledger In a ledger the debit items on the left side of the balance sheet must always equal the credit items on the right side of the balance sheet e A trial balance is a listi
76. d approval required Board approval is required when the purchase is 75 001 or greater for any purchase 75 000 or greater for any personal service contract and consultants Splitting purchase orders or requisitions or issuing multiple purchase orders to avoid these limits is illegal and prohibited by the Board To obtain Board approval a Board Report must be completed Please refer to Appendix F for guidelines on preparing Board Reports When is LSC approval required According to the Illinois School Code the LSC has the right to approve in accordance with Board rules and policies receipts and expenditures for Internal Accounts activity Purchasing 3 3 I For fundraising and graduation related expenditures include approval of payments in minutes from LSC meetings Fundraising by external organizations using school facilities LSC approval also should be included in the minutes The principal or designee shall receive this approval by making expenditure and receipt approvals a monthly agenda item at the LSC meetings The school must obtain the LSC s approval prior to making purchases with Internal Accounts funds over the following dollar amounts Elementary schools Over 1 000 High schools Over 2 500 The LSC may increase the approval limit but may not set a limit lower than the above listed amounts Additionally the LSC shall receive a copy of the Internal Accounts Monthly Trial Balance please see
77. d be done by counting funds with the vendor or using machines with automatic counters Whenever possible a school representative should be present when money is removed from the vending machines If a school representative cannot be present for money removal random checks should be made to make sure the school is getting its fair share Step 3 Deposit profit in Account 2 6XXX Note If vending machine funds are from a staff only vending machine and that money is to be used for staff related expenditures please deposit funds in Non Student Money 2 9000 How will school acquire vending machines and who is in charge of them after they are delivered The CPS Board vendor will supply the vending machines to the schools and be solely responsible for the maintenance and repairs of the machines However the schools are responsible to notify the vendor of any need for service or maintenance to the equipment The vendor will be responsible for repairing replacing relocating moving or removing any equipment Can we add different beverages to the machines Only the Board vendor s beverages may be distributed in vending machines CPS has approved vendor sets No variations will be allowed Who incurs the cost if any for vending machine installation The Board vendor is responsible for contracting and providing all electrical hook ups required for the equipment at its sole cost This includes responsibility for obtaining any and all permi
78. d of Education concerns The following procedures must be followed to consolidate vending machine operations in Chicago Public Schools Schools Compensation In the late summer early fall the Department of Operations Vending Services will communicate the exact commission structure and payment process to the schools Schools will receive a lump sum compensation in the fall of each school year that reflects the commissions for the full year based on last year s sales Product Mix As of the 2004 2005 school year the Chicago Board of Education developed a policy on vending machines to offer a healthier selection of products in all schools CPS vending machines no longer will contain any carbonated soft drinks The Board approved vendor will be authorized to distribute non carbonated products as follows e In elementary schools juices containing 100 fruit juice and in high schools juices containing no less than 50 fruit juice e Waters e Non carbonated sports drinks This policy applies to all school vending machines including teacher s lounges and administrative buildings Vending Prices Prices for vending machines will be range from 1 00 for cans to 1 25 1 50 for non carbonated plastic bottles beverages Refund funds Each school must complete a Refund Form every time for each refund Forms will be submitted to vending machine supplier for reimbursement Exclusivity The vending machine contract is an exclusi
79. dditional funds or close the account Wl The safest way to make payments for scholarships is to pay directly to the X institute of higher learning This will ensure the money is used for its intended purpose Revenue Generation 5 31 O_O aaa K Checklist and Chapter Review Q If leasing school property a lease agreement and the proper insurance papers must be obtained Q If additional staffing is needed for a leasing event the school must contact the Office of Management and Budget to open a position and submit a check for the position s expenses a The Principal and LSC must understand that they may spend lease income in a manner they determine to be most beneficial to the school and its students a For recurring lease income the payment from the lessee must be sent directly to the school a A Local School Fundraising Proposal must be completed for every fundraising activity a The school must receive approval from the area office and the principal before hosting any fundraising activity a The school must receive LSC approval before hosting a fundraising activity with an outside organization a Money collected for school pictures must be deposited directly into the school s Internal Accounts a A Concession Sales Accounting Report must be completed twice a school year for continuous fundraising activities and concession sales to give an account of the school s vending machine sales Revenue Generation
80. e 13 Area Office 13 4655 5 Dearborn 4th Floor Chicago 60616 05141 0514 Area Elementary Instructional Office 14 Area Office 14 6533 South Stewart Avenue Chicago 60621 A141 514 Area Flamentarw Instrictinnal Office 15 Area Mffire 15 FAA South Stewart Avenue Chirann RNR 1 Appendix D Cash Advances Payables and Purchasing D 10 Budget From the Budget tab check original and current budgets commitments obligations expenditures and funds available F Budget Inquiry Microsoft Internet Explorer File Edit view Favorites Tools Help SS Address 6 https ferp csc cps k12 il us 8443 pls appsprad cps_ing_budget_pkg show_inquiry pCookie R Back gt 2 search ajravorites media X EY GH Si E W Failed to retrieve buttons from My Web Search B Links gt CPS CHICAGO PUBLIC SCHOOLS Return to Portal Help Sr Tip The search results are based on data refreshed last night Fund Type All d Unit peno Fund Ranges m to fis Account Ranges pan to pan Program Ranges s2502 7 to 252502 Grant Ranges 000000 to foooooo 7 First Segment Unit x Second Segment al Third Segment al Fourth Segment a Fifth Segment Show Subtotal Show Inbound Outbound Show Segment Description Appendix D Cash Advances Payables and Purchasing D 11 L aaan Oracle Budget Transfer Tool To transfer funds on
81. e arrow uttons to perform account translation Click on the Funds Lookup button to review funds available budget and expenditures E Done O p fag internet Appendix D Cash Advances Payables and Purchasing D 5 Me Segment Lookup From the Segment Lookup tab you may search on any chart of account segment Unit Fund Account Program or Grant Enter either the legacy or Oracle segment to translate CPs COA Segment Lookup Microsoft Internet Explorer laj x File Edit View Favorites Tools Help a v Eao Address https ferp csc cps k12 il us 8443 pls appspradcps_ing_segment_pkg show_segment p_criteria 25115 258p_submit Search p_segment FUND Heak gt gt A A seach GFavortes meda v E E W railed to retrieve buttons from My Web Search G in Return to Portal Help D z CPS CHICAGO PUBLIC SCHOOLS Select the appropriate segment to review Type the value in the Search Criteria box T B meme E Done Appendix D Cash Advances Payables and Purchasing D 6 Dre PO Invoice From the PO Invoice tab you may search on invoices purchase orders requisitions For Purchase Orders narrow criteria by entering PO number or status open or closed dates vendor name or number Board Report number or budget line a PO Inquiry Microsoft Internet Explorer Eile Edit View Favorites Tools Help Back gt
82. e grants include US Dept of Education US Dept of Human Services Illinois State Board of Education Illinois Dept of Public Aid City of Chicago and sister agencies Private foundation and donations may require financial reporting This reporting responsibility lies with the unit receiving the funds If funds are deposited internally this money should be kept in an independent account and expenditure invoices should be maintained To prevent fund commingling with legacy project 432 citywide miscellaneous funds sent to the Central Office to be loaded to a budget line for example salaries should be segregated by program number New Schools for Chicago funds are being loaded into separate project numbers Principals are required for all expenditure reporting Detailed Expenditure Reports are available in Oracle Accounts Payable Q What is the procedure if a Central Office or school unit purchase order has been canceled A 1 Return the goods or merchandise or 2 Pay for the goods from the unit s internal accounts or 3 Identify a non grant funding line to request a new requisition Appendix G FAQ G 7 C aaam Q What is a grant project value end date and how does this affect units A The Oracle purchasing system has program controls to read end dates and liquidation dates of a grant numbers Grant numbers in Oracle correspond with the Legacy Project Numbers in the budget lines Each grant has a specific time frame
83. e sale continuous sales or vending machines One Time Sales For each type of one time sale requirements differ depending on the following situations e The school exclusively conducts the sale e The school and an outside organization jointly conduct the sale e An outside organization exclusively conducts the sale e The LSC exclusively conducts the sale 1 Fundraising Conducted Independently by the School Teacher Conduct sal ae Obtain prope Obtain a Agpuel Finish sale amp SPARES approval for products for po Prepare final prepares collection with accounting sale sale proposal treasurer report An entire school or formal group of students with a faculty sponsor has the option of hosting fundraising activities for school related events Such fundraising activities should benefit the student body in the same school year the funds are collected The following procedures should be followed when a school decides to independently conduct a fundraising activity These procedures present the basic steps that should be followed when conducting any school fundraising activity regardless of whether this activity is independent held jointly with another organization or sponsored by the LSC Later subsections explain in greater detail how these procedures change slightly to accommodate specific fundraising situations Revenue Generation 5 18 ee Step 1 Prepare a Local School Fundraising Proposal
84. e storage To retrieve records from offsite storage complete the Record Request Form as required to document records being requested Arrange for offsite commercial storage to deliver required records Once records retrieved are no longer needed records should be returned to offsite storage as soon as possible Following up with individuals using retrieved records may be required until the records have been returned To return records to offsite storage refer to the procedure regarding returning records to offsite storage and update departmental records and or the Record Request Form as required to document when records have been returned to offsite storage Arrange for offsite commercial storage to pickup records and return them to offsite storage To obtain the most current information regarding records management policies procedures forms and record retention and for all records related questions please contact the Records Management Staff in the Law Department 773 553 1700 Enterprise Records Manager 773 553 1679 Records Systems Administrator 773 553 1593 Records Management Retention and Disposal 6 6 ee Appendix A Internal Accounts e Chart of Accounts e Trial Balance Sample e School Sport Officials Form e Petty Cash Reconciliation e Student Fee Waiver Form e Tax Identification and Exemption Letter Appendix A Internal Accounts A 1 ee Chart of Accounts http cps k12 il us Abou
85. e these checklists and keep your books up to date you will probably pass the audit process Please Note Auditors can inspect other records and documents in addition to your Internal Accounts What is an audit exception When an auditor identifies a record keeping error or incomplete records the auditor prepares a written report documenting the problem and what policy or procedure has not been followed This report is referred to as an audit report and any rule or procedural infraction is referred to as an audit exception If an audit exception is discovered at your school you should prepare a written response to the Controller s Office Internal Audit and the area office This response must include a plan to correct the problem and should identify new procedures additional controls and restitution if necessary to ensure that the problem does not occur again May raise more money for my school The principal is responsible for approving each student activity fund Funds may be raised in addition to the amounts provided in the Chicago Public Schools budget Permission to raise funds must be obtained in writing from the principal and approved by the LSC for outside fundraising organizations Additionally area office approval is required for all fundraising activities regardless of the amount being raised This is a change from the past practice when no area approval was necessary if funding did not exceed 1000 Fund
86. eceipts Journal Cash Disbursements Journal General Journal General Ledger and School Equipment and Furniture Register The school must use M Y O B software or another comparable automated accounting package According to the Chart of Accounts separate ledger accounts must be established for school collections Schools must use the basic format of the Chart of Accounts as shown in Appendix A This Chart of Accounts is flexible and can be customized by each school by adding accounts Accounts already established should not be removed The school must maintain permanent paper copies of the books of record Cash Receipts and Disbursements Journals General Ledger and General Journal The automated packages will allow the user to print paper copies of the required records with the exception of the school Equipment and Furniture Register When an automated accounting system is used a monthly back up data diskette or CD MUST be maintained Every three months a copy of the back up data diskette CD along with the printed monthly reports should be sent to the Area Office Each month the books must be reconciled to the bank statement A copy of the bank statement must be attached to the monthly reports and forwarded to the Region Business Manager Bookkeeping 4 1 e All school financial records must be kept at the school in a secure location A secure location is defined as a locked fire resistant cabinet or vault This includes electr
87. ed at 50 of previous year s earnings and the reconciliation of earnings from the prior fiscal year Q When and how are a school s beverage funds distributed A Food Services reconciles the beverage fund earnings in August September and provides the Controller s Office a file for distribution Payments are sent electronically to school bank accounts for units that have complied with the Internal Account Survey requirements online Internal Accounts Survey May general ledger reconciliation May bank statement and Asset Equipment Register Q How does the Chicago Public Schools report its financial condition A Each year School Financial Services produces an annual report The report is distributed in a comprehensive format CAFR and in a popular version PAFR These reports include audited financial numbers for the entire district for the one year fiscal period dated July1 through June 30 of each year Q How may I get a copy of the Insider s Guide to School Business and Internal Accounts Manual A Contact the Controller s Office at 773 553 2710 You may also get a copy of the manual on line at http www cps k12 il us AboutCPS Departments finance Amanual Q What is a CAFR A The Comprehensive Annual Financial Report CAFR is the official report for government agencies and includes combined statements of revenues expenditures and changes in the financial position This report also provides supporting schedules ne
88. ed at the school s discretion For most rentals an engineer or security officer may need to be present A portion of the rental funds may be used to cover the salaries A school should deposit the entire check into their internal accounts and then issue CPS a check for any estimated funds to be added to a bucket position Please refer to the Office of Management and Budget s Fund 280 procedures for further clarification Contact the Department of Real Estate before signing any rental agreements Appendix G FAQ G 4 ee Q What is the current rate for Non Resident Tuition A The Illinois State Board of Education ISBE calculates the non resident tuition rate for school districts in Illinois This information is based upon school district expenditures and attendance records This information is disseminated by ISBE in April for the preceding year Any non resident student wishing to attend a CPS school must pay 110 of the non resident tuition rate and gain the principal s permission prior to attending the school Non resident students are not allowed to attend any magnet schools The current rate is 6 772 47 The Board rule may be referenced in Section 5 17 of the Board Rules http www cps k12 il us AboutCPS Board Board_ Rules Chapter_V paf Any student that becomes a non resident during the course of a school year shall not be charged non resident tuition for the remainder of the year However the student shall not be allowed to
89. eeeeeeeeeenees 18 Parent and Student Rights of Access to and Confidentiality of Student Records 19 Compliance with Freedom of Information Act Requests ceccceeeereeeeeeees 20 State Chapter 1 Expenditure Guidelines cccceceeccseceeeeeseeeeeeeeeeeeteeeseeeeeeeeees 21 Appendix G Frequently Asked Questions ecccceeeeseeceeeeeeaeeeeeeseaeeeeeeetaeeeetensenees 1 Controllers Office General ACCOUNTING cccceecceeeeeeeeeeeeeeeeneeeeeeeeeeeeteeeneeeeteeneeees 1 Accounts Receivable icssaneccesceresnestecenstncencareuncterateendsbsatveanmne eulanennaine nunnan ennnen nnna 3 Grant ACC DTANGS esson a E a E E ems Pea eaoRs 6 Grant Reporting a acted encistesansseacimetasseceewttagttcesttaca ences entecdedesencqanys sonwenaass aectteudsarceaeecens 7 Ac ounts Payable eirca ss ere cece 7 Internal Accounts Survey sacs seasssncctsuachaneseessubonesbescannteey wieaennmeasaquecbaued hopes tGbnebebeanceonsade 9 Internal Accounts Manual ic cco coccesaveguvetdanetecreiceueerduletdaxetadantadanteoneniatnetdeuetemeiennies 11 Table of Contents iv C amamma Letter from the CFO Dear Colleagues Chicago Public Schools are not only faced with the daunting task of educating our students but also with adhering to all Board policies recommended business processes and routine procedures This user s guide attempts to assist schools with the required business functions and policies by providing schools with the mos
90. ersion of M Y 0 B to record Internal Accounts in version 7 A Click Start then highlight Programs B Highlight Bestware then click M Y 0 B Plus Upgrade C Click the Yes Button D Double click the C Folder in the right window m Highlight the M Y O B 6 Folder in the right window and Click the OK Button F Highlight the Internal Accounts data file in the left window and Click the OK Button G Type the name of your data file in the highlighted box as shown in the window below the highlighted box and add the number 7 after the last character in the name If your file name is MYSCHOOL DAT change it to MYSCHOOL 7 DAT H Double click the CA Folder highlight the MYOB Plus Folder Click the OK Button Click the OK Button again Click the NO Button 2A Copy the data on the Chicago Public Schools Disk CD into the M Y 0 B Plus Folder Bookkeeping 4 14 MM Place the Disk CD in the appropriate drive Click the Start Button then highlight Programs Click Windows Explorer then click the Floppy Disk Icon Click the MYSCHOOL Data Icon o O p gt m Click Edit then click Copy F Click the M Y O B Plus Folder G Click Edit then click Paste H Click File then Close 3 Start M Y 0 B and open the MYSCHOOL DATA file 4 Click Setup then Company Information 5 Type the school name and address in the boxes shown 6 Make a note of the fiscal year and last month of the fiscal year
91. ervices at 773 553 2660 e For grant acceptance training please contact the Bureau of Revenue at 773 553 2394 e For requisition iProcurement receiving training please contact the Department of Purchasing at 773 553 2280 e For Oracle Public Sector Budgeting and Position Control PC training please contact the Office of Management and Budget at 773 553 2560 e For Internal Accounts and M Y 0 B software training please contact School Business Services at 773 553 2712 e For Student Information system Project IMPACT training please contact the IMPACT help desk at 773 553 4672 Administration 1 9 ee E Schools Closing When a CPS school closes the closing school s Internal Accounts funds from both checking and investment accounts follow the students that had been attending the school Given that the students from the closed school may be dispersed to various CPS locations the internal account funds should be transferred to all of the schools where these children are sent After all the closing school s outstanding debts have been paid remaining funds should be dispersed at a percentage equal to the percentage of the closing school s students now attending the new school For example School X closes After School X pays all outstanding debts it has 100 000 in its Internal Accounts If 40 of School X s students go to School Y and 60 go to School Z then School Y would receive 40 000 and School Z would recei
92. es the school little recourse for guaranteeing the product is delivered in full in a timely manner All schools must adhere to the following guidelines when taking school pictures The school is responsible for the money collected if the photographer fails to produce the pictures The most important thing to do when conducting a photography sale is to be comfortable with the expenses paid to the photographer Obtaining detailed invoices from the photographer and comparing that to the anticipated participation by the students will assist analysis Schools may want to competitively bid photography services each year to ensure competitive prices Revenue Generation 5 13 All Photographers Step 1 Step 2 Step 3 Step 4 Step 5 Sign Contract with Photographer Deposit Payments in School Internal Obtain Product from Vendor Make payment to Vendor Accounts Obtain written bid proposals from photographers Obtain a minimum of three 3 written Bid Proposals from photographers Award the contract and obtain a signed contract This contract should indicate the division of profits between the school and photographer and any other specific requirements identified by the school A contract may not be entered into for more than one year Specifically the contract should include the following e A detailed description of the fees being charged by the photographer e The percentage of sal
93. es the school will receive if the school is using picture sales as a fundraising activity e Wording that states the school will retain the collection of student fees in its account until the photographer has delivered the product Use a Payor List to record collections from students A copy of a Payor List can be found in Appendix B Deposit collections in the school Internal Accounts The school should not remit any portion of the collections to the photographer until the pictures are delivered and a proper invoice is submitted The school must establish a sub account in the Internal Accounts for the photography collections Pay photographer Payment to the photographer should be made based only from a detailed invoice provided by the photographer The school should handle any dispute with the photographer If disputes cannot be resolved please contact the Bureau of Purchasing at 553 2280 Revenue Generation 5 14 re F Grants Gifts and Donations The Amended Board Rule To ensure the continued uniform implementation and management of all school based grants gifts or donations from the governmental and non governmental agencies in accord with the Illinois School Code the following Policy for the Acceptance of Grants Gifts and Donations has been amended to streamline the reporting process Effective November 1 2004 the Board adopted a new grant acceptance policy 403 3 The amendment to the Board Rules has given the r
94. esponsibility of accepting all grants gifts and donations to the Office of the Chief Financial Officer on behalf of the Board Benefits of this change include the ability to process documents as they are received and shortened timelines for acceptance Additionally the CFO prepares monthly informational reports for the Board listing these grants gifts or donations noting reasons for refunds or returns Any school area or central office unit that receives a grant gift or donation of funds or equipment must obtain approval from the CFO prior to using the funds Please refer to Appendix F for Copy of CPS Grant Acceptance Policy The Purpose This policy shall establish an acceptance process for all grants gifts and donations received by any central office area or school unit Establishing the administrative requirements in this policy ensures uniform implementation and management of all grants gifts and donations and also ensures that the Board meets its responsibilities as the grant gift or donation recipient The Policy for the Acceptance of Grants Gifts and Donations All CPS units must request approval to accept all grants gifts and donations of any amount by utilizing the Oracle web based application Not only does this process allow the user to view the requests statuses but also it provides E mail notification of grant acceptance status Failure to adhere to the requirements could result in violation of Board Policy and p
95. ess to the school or students is strongly recommended The following procedures should be adhered to when an outside organization i e PTA PTO exclusively conducts a fundraising activity on the school s premises by soliciting school personnel and students Organizations must be accredited groups or agencies in order to raise funds at the school These groups and organizations are accountable fully for the funds generated and the expenses incurred The principal the LSC and the Area Instructional Officer must approve all fundraising activity conducted by an outside organization A copy of the agreement for the use distribution of profits should be included with the fundraising proposal when submitted for approval to the AIO Revenue Generation 5 22 ee Step 1 Prepare a Local School Fundraising Proposal e If the principal is uncertain about the organization s fundraising status at the Chicago Board of Education the principal should contact the Office of School Instruction Management e f satisfactory then the organization may host the fundraising activity during the established time of the district wide campaign as approved by the Chicago Board of Education In this case an organization is exempt from completing a Local School Fundraising Proposal e f not then the organization must obtain the approval of the principal LSC and Area Instructional Officer by completing a Local School Fundraising Proposal Step 2 Upon appro
96. etes the reports e All missing inventory items must be explained in a written statement signed by the principal and activity sponsor and attached to the Local School Fundraising Accounting Report e All funds generated from the fundraising activity should be deposited in the appropriate fundraising account e The School Treasurer must verify the ending inventory and the sales receipt e An original copy of the Local School Fundraising Accounting Report and the Concession Sales Accounting Report must be maintained at the school e Any significant discrepancies must be reported to the Region Business Manager for review and possible action Remember to always complete an accounting reconciliation report at the completion of each fundraiser Keep all documentation for school records Step 6 Transfer profits to activity accounts Once all of the receipts have been collected and invoices paid the remaining profit should be transferred to a specific activity account If a school finds that misuse or misappropriation of funds has occurred the school should notify the Inspector General so that the case can be researched more thoroughly Misusing and misappropriating school funds violates the Chicago Board of Education s Code of Ethics Restitution of funds is strictly enforced Revenue Generation 5 20 ee 2 Fundraising for the School Conducted with an Outside Organization Schools have the option of hosting a fundraising act
97. f Contents i O_O aaa Insider s Guide to School Business and Internal Accounts A Accounting BASICS cieatat aaa a aa aaan araia 4 4 B Procedures using M Y O B 7 0 ecccccccesssceeeesceeeeeeesseeeeeeseeeeeetesaaeeeeeeeaaaeees 4 14 C Other Bookkeeping Methods ssssnessssinesssersssrrrrrertrntrsenrnsserrnnrrrnnnnnsrrrnseee 4 38 D Accounting Bookkeeping Service ccccccececsescceeeeeseeeeeeeeseeeeeeeeeeaeeeeeeeneaaeees 4 38 E PUUIOINUNG a icceee se repo B idan tcaace eee S ene aati 4 38 F Checklist and Chapter ROVIQW vs cccccsciescccacessosscsassconecpessscreetcsdinneesteddeadessoeeneers 4 39 5 Revenue Generation cxiscsccceccissscddiccsuepccse csecncaaeiscnnsnieasdycsbanndectd oraatassentennvecewiecunnces 5 1 A Permit Fees and Leasing School Property s ssssssssessssrrneseenrresrerrsserrnnrerennnssene 5 2 B Student Activity FOSS scciicstetancaieiacaxiaoimienterdonteieeredeanins ENE deta eee 5 7 C Entertainment and Athletic Fees cccceccceeeeesceceeeeeeneeeeeeeseeeseeseneeeeeeeeeaeees 5 9 D Grad ation See errr emer ee eee ren ee Seen eee ee ee ee ee 5 11 E PINOIGGaIDINS sciatic cis cecesthcasmesns are an erase a ENTE AA ES EEEE 5 13 F Grants Gifts ANd Donations ccccccceceececceeeceeeeeeeeceeeeeeeeeeeeeeseeeeeeeenseeaenens 5 15 G Single Fundraising Activities cocci ise jcciat nidsreideencnsdecxatetaassxponstvechiestindeniienn 5 17 H Continuous Fundraising Activities and Concession Sale
98. f money collected recorded and deposited to the bank Security Please contact your Region Business Manager if you are interested in establishing a Student Service Center Money Handling 2 8 I Deposit money in bank How often are deposits required The most optimum business practice is to deposit money daily However money must be deposited at a minimum of once a week The end of the week is an ideal time to deposit money It is not good practice to leave money in the school over the weekend All money should be deposited in the bank if the school is closed for extended periods of time such as holidays or vacation periods ily One principal indicated that he makes a deposit when the level of cash is e greater than what would be willing to replace out of my own pocket S The longer money remains at the school the greater the risk of loss and the less interest it earns How can money be deposited The principal can designate any staff member to take the money to the bank If you have collected a large sum of money you should request a security guard to accompany you to the bank A deposit slip should be obtained from the bank to indicate the amount deposited and date of deposit e The amount of money deposited in the bank should equal the amount of money receipted by the School Treasurer since the last bank deposit e The amount of money recorded in the school Treasurer s Receipt Book should equal the amoun
99. f the monthly reports Additionally if using M Y O B or another automated system a monthly back up data disk CD NOT ON THE HARD DISK DRIVE must be maintained in a safe place A back up data disk or CD should be sent to the area every three months with the monthly report The disk CD should be labeled with the following e School Name e Month beginning date month ending date e Treasurers name and phone number All financial records must be kept at the school If a school uses an automated accounting system the school must print hard copies of the monthly reports and cash journals The school must make back up copies of the electronic files periodically to ensure all data is secure Security is provided by password access to the system a session back up and the area s offsite copy of the monthly reports Lack of electronic back up files and hard copies of financial records will result in an audit exception Bookkeeping 4 13 el eT B Procedures using M Y O B 7 0 How to Install M Y O B 1 Install the M Y 0 B Version 7 Program A Click Start then highlight Settings B Click the Control Panel Icon C Click the Add Remove Programs Icon D Follow the on screen instructions Note If you are using M Y 0 B for the first time follow the instructions in 2A If you are already using M Y 0 B Version 6 or lower follow the instructions in 2 only 2 Upgrade the data file used in a previous v
100. facility Sending inactive files to offsite storage will relieve schools of the burden of storing inactive records and help ensure compliance with Board local state and federal requirements To store records offsite 1 Contact CPS Records Management Staff for a copy of the Records Management Procedures Forms and Retention Schedule and request records management supplies boxes and barcode labels for packing records Review the records currently being stored in your school Pack records and label boxes according to the procedure regarding transferring records to offsite storage 4 Complete the Business Records Data Input Form and or Student Records Data Input Form and maintain this information as required 5 Provide CPS Records Management Staff with a copy of the completed form s by Fax or through CPS Distribution 6 CPS Records Management Staff will make arrangements with CPS Distribution for picking up boxes of records To access records sent to offsite storage call the CPS Records Management Staff Records Management Retention and Disposal 6 2 a Records Disposal CPS has a record retention schedule that has been approved by the Illinois Local Records Commission of Cook County This schedule lists how long CPS is required to maintain both student and business related records and is updated from time to time Records cannot be destroyed before their retention period is over Once the retention period for a record
101. fied for the financial management of a Chicago public school 1 Spend the money wisely Purchase only those items or services that benefit educational programs and the student body 2 Spend the money in the proper time frame 3 Use the money for its intended purpose 4 Follow the procedures approved by the Board of Education as stated in this manual as amended 5 Keep good records If you follow these principles and use the tools provided you should have the information and control necessary to manage the business aspects of your school or unit What are School Internal Accounts Each school has two sources of funds to spend on its educational and extra curricular activities the school s budget line account and the school s Internal Accounts Local state and federal governmental revenues primarily fund the school budget line account The school s Internal Account is a cash management system to handle the cash that flows through each school from students parents and the community The sources of this cash are varied student fees fundraising activities special events lease income and gifts or grants Good financial management budgeting and record keeping are necessary for both accounts Introduction I What does it mean to spend funds wisely School funds should be spent on the best educational programs and for the benefit of the students Why should I keep good records As principal you are respon
102. field trips A Payor List is for a specific time period when the collections are made Reimbursements from Chicago Board of Education CBOE All schools are r ir rtici in the Electronic D Interchan EDI program in order to receive reimbursement from CBOE These reimbursements are for Board related expenses A Treasurer s Receipt is not required as the money is automatically deposited in the school checking account Money Handling Any and all budgeted amounts that are non payroll related can be sent via EDI Electronic Data Interchange These include but are not limited to reimbursed expenses payments to local school councils teacher instructional supply monies and reimbursements for purchase orders To participate in the EDI program please contact Accounts Payable How do l record EDI Transactions at my school The Board will notify the school by E mail or other methods that the deposit has been made to the school s bank account The E mail will include the funds transfer date and list of EDI numbers that should be used to identify the budget line s charged in making the transfer to the school s account The school may also go to Administrative Mapper and type EDI in the upper left hand corner of the screen and press enter or scroll lock to get a list of dates of EDI deposits e Look at FIRS F124 or a current FI60 Report to get a description of budget lines charged Use the information to determine the ac
103. g will not be provided Appendix G FAQ G 8 ee Internal Accounts Survey Q Schools are required to submit what Internal Accounts information A Each year all schools are required to submit four pieces of information the Internal Accounts Survey completed online May bank statement May M Y O B Bank Reconciliation Report and the Asset Register If applicable Asset Transfer Disposal Forms should be submitted to The Bureau of General Accounting All information should be sent to Bureau of General Accounting 125 S Clark 14 Floor GSR 125 Q When are the required pieces of Internal Accounts information due A Every year all information is due by June 30 the end of the CPS fiscal year Q What does this survey have to do with a school s vending machine money A Each school s vending machine money is released upon acceptable submission of all four pieces of information online Internal Accounts Survey May bank statement May M Y 0 B Bank Reconciliation Report and Asset Register Q Do I have to complete the survey even if my school does not receive vending machine money A Yes every school must complete the Internal Accounts Survey Current governmental accounting rules require CPS to disclose the status of all accounts in the Comprehensive Annual Financial Report CAFR completely In addition federal grants require schools to track all grant expenditures and fixed assets over 500 Q What
104. happens to the Internal Accounts information submitted to School Financial Services A Each year the financial information schools submit is analyzed and then compiled into the district wide CAFR Furthermore a sample of surveys is selected and audited for financial accuracy Schools not in compliance may be subject to an internal audit Appendix G FAQ G 9 ee Q What if I forgot my unit s Internal Accounts Survey password A Your unit s password may be obtained by E mailing InternalAccounts cps k12 il us or calling 773 553 4271 IAS1 Q am working on the online survey Why am I unable to move on to the next section A In the bank accounts sections the system will not allow you to proceed to the next section unless the bank statement balances with your book statements For all other sections you cannot proceed if an unacceptable item populates one of the fields Q How do view my school s asset register from last year A If your school has an asset register on file from a previous year you can access it through the online survey by clicking on the Fixed Asset File button from the Main menu This survey section has a Fixed Asset Files area Here previous asset registers will be listed and available for download To download follow the instructions under the file Q What if my school purchases an asset after have already submitted the Asset Register to Internal Accounts A Upon purchasing new
105. have enough cash available to Ss cover two and a half months expenses What types of investments are allowed Schools can place their Internal Accounts money in bank accounts that earn interest as long as these investments are consistent with the Chicago Public Schools Investment Policy Specifically schools can consider savings accounts insured money market accounts Certificates of Deposit and Treasury Notes Riskier investments are prohibited School funds may be deposited in accounts of federally insured banks and savings and loans provided that the investment is not in excess of the maximum amount that is insured by the FDIC 100 000 Savings Account Schools may deposit funds in an interest bearing savings account Such accounts do not allow checks to be written from the account although withdrawals can be made Money Handling 2 15 MR Insured Money Market Account A money market account is an interest bearing account that pays interest based on current market conditions Such accounts usually have a minimum balance requirement and a limited amount of checks that may be written per month Should a school choose to open a money market account the account must fall into one of two categories e A Money Market account with no check writing privileges strictly used as a savings instrument e The school s primary checking account with unlimited check writing privileges A school cannot have both a checking acco
106. he investments have been collateralized Money Handling 2 16 Step 1 Step 2 In order to maintain the safekeeping of investments CDs and Treasury Notes should be held with the bank Please refer to the CPS Investment Policy in Appendix F for additional information How should records of investments be maintained All appropriate bookkeeping entries must be made in the General Ledger and Cash Disbursements Journal for investments that are purchased using school checks Schools are required to maintain bank statements to support the investments Please refer to Chapter 4 Bookkeeping for additional information Set up a ledger account Establish a ledger account for all investments in Account 1 3000 Please make the following journal entry for recording original investment in the cash disbursement journal Debit 1 3XXX Investments X XXX Credit 1 1100 Checking Account X XXX Record interest Record all interest received or credited to investments or savings accounts as interest income in Account 2 13XX Journal entry for recording interest received Make a journal entry to allocate these funds to specific activity accounts by making the following entry Debit 1 1100 Checking Account X XXX Credit 2 13XX Specific investment Income Account X XXX Record all interest received or credited to investments or savings accounts as interest income in Account 2 13XX Journal entry for recording interest credited
107. hese benefit lines are automatically calculated for new positions during the lump sum budget process After the lump sum budget the school must calculate salary and benefit costs Appendix G FAQ G 13
108. hool e When the call was responded to e What problems were repaired e Service technician responding to the call Vending Machine Guarantee of Service All concerns problems issues etc with your vending machines should be formally documented on the Service Repair Refill Form Please contact the Manager of Food Services at 773 553 2942 for this form Along with the above please be aware that the project provides for servicing all vending machines installed at your school Such services however require that your school adequately document each service request Therefore please ensure that your school maintains this record and utilizes it for all service requests How can my school get a vending machine If you would like to order a vending machine for your school please contact the CPS Manager of Vending Services at 773 553 2942 Revenue Generation 5 30 ee J Other Revenue Sources Instructional Materials How are lost and damaged instructional materials handled At the discretion of the principal the student must pay all payments for loss or damages to instructional materials directly to the School Treasurer or the classroom teacher The student shall be furnished with an individual receipt All money collected is to be credited to the Lost and Damaged Instructional Materials Account 2 1108 After completing an Expenditure Requisition Order purchases may be made from the Lost and Damaged Instructional Materials Account Lo
109. hool Fundraising Proposal Obtain the prior written approval of the principal This approval is required for all fundraising activities regardless of anticipated receipt value Obtain the prior written approval of the Area Instructional Officer This approval is required for all sales For all school and LSC sponsored fundraising activities as well as fundraising activities conducted with an outside organization 1 Ensure the entire school or formal group is hosting or co hosting the fundraising activity A formal group must be a pre defined group of students such as a class or club with a teacher or faculty member sponsor A random group of students or partial collection of students from a class or club does not legitimize a formal group Complete steps 1 3 outlined for all fundraising activities Note The Office of School Financial Services recommends that if an entire school or a large student body is conducting a fundraiser then the school pre sell fundraising merchandise before delivering the product i e catalog ordering This recommendation is made to prevent the school from losing profits because fundraising merchandise is lost or unaccounted for without receiving proper payment Deposit fundraising sales daily with the School Treasurer This policy also applies to fundraising activities sponsored by Local School Council At the conclusion of the sale should an out of school organization be involved their share of the pr
110. ic accounts General School Accounts 2 1000 Internal Accounts listed under this classification are used to record not only receipts in the General Fund 2 1101 but also other funds raised with or without student participation but intended for student use All expenditures recorded in this account must be for the general benefit of all students This account does not allow expenditures to benefit any particular individual group or organization Investment Income 2 1300 and Lease Permit Income 2 1200 This classification records income that must be allocated to a specific school account for disbursements Class Accounts 2 2000 Internal Accounts listed under this classification are used to record the receipt and disbursement of money directly related to the classroom such as biology chemistry music etc Please Note This account does not include fundraising activities Specific Activity Accounts 2 3000 This classification is used to record the receipt and disbursement of money related to extracurricular activities such as Graduation Student Council ROTC Honor Society etc Fundraising One Time 2 4000 Internal Accounts listed under this classification are used to record the receipt and disbursement of money for one time fundraising events i e one time candy sales Fundraising Continuous 2 5000 This classification is used to record the receipt and disbursement of money for continuous sales and fundraising
111. iinetcne cats Zcadsetn tostensoneage das ss atenmaneteamenidbeceeendtenccamacen 4 Payor Os Recenter ere ey eer cee ee ee eee 6 Table of Contents ii O_O aaa Insider s Guide to School Business and Internal Accounts School Usage Permit secenegi tien ia Eaa aae Ee ad gas ear Tia an 7 Concession Sales Accounting Report sessssssesssserrrerrrrtrsrrtrrsstrrnnerrnnnnnsrernssrn nnne 8 Ticket Accounting SPN asc osc scessecccerdeieccart scene eae eteeee ae eeetaeteeese 9 Perpetual Inventory Card Report sicccctccccscscarcdeacecastecascesserevsectened sdvcereenasthenseansentbens 10 Check Transmittal PON xcs sceuctatresextantsncctecenidaceicenecrdnmetsataieenetetetenccantdagactemeaisiucs 12 Grants Gift and Donations Access Request FOrm cccceceeeeeeeeeeeeeeeeeeeeeenees 13 Receipt MG Moran aise cscchexcccnssocianecaetcen sy ais cas vegencenteeeoiandsanden cenceatieneutece Aucannneads 14 Appendix C Fundraising sctceseccccheceseicccencntGuctdaggidsnetdonasbendeidasebethersianiaanasigceeddinatgecun cia 1 Local School Fundraising Accounting Proposal sesssssseesserrnresrrrrresrrrrsserrnrerrnne 2 Local School Fundraising Accounting REPOFt ceeeeeeeeeeee eee eeeeeeeeeteneeeeeeenaeeeees 4 Appendix D Cash Advances Payables and PurchaSing cceceeeeeeeeeeereeeeteeneeees 1 School Expenditure Requisition Order ssciccisecccecexsssnscartesustean ence natateearaiactenanebeans 2 Requisition Worksheet aca sase2s
112. in approval for ceremony and other events As expenditures may exceed approved payment limits obtain Principal and LSC approval for the ceremony Revenue Generation 5 11 Step 3 Step 4 Step 5 Step 6 Step 7 If the graduation ceremony is planned for a non CPS facility determine if the facility will require a Certificate of Insurance and or written agreement from the Board Requests for Certificates of Insurance should be directed to Risk Management at 773 553 3310 as soon as the agreement is approved and no later than 14 days prior to the event Written agreements should be sent to the CPS Legal Department for review Arrange for vendors to supply services and supplies The school should contact the vendors that have provided acceptable services in years past Other schools can be contacted to suggest other vendors Prepare graduation announcement letter and send to parents The graduation letter should show how the fee s would be used including the explanation and breakdown of mandatory and optional fees Collect graduation fees from students Receipt money using a Teacher s Receipt Book or Payor List Because the graduation fee is usually a larger amount than normal student collections parents are more likely to desire a receipt for collections This requires using a Teacher Receipt book Record collections in general ledger accounts The standard chart of accounts uses Account 2 3110 Graduation Fees
113. ined Charities In addition our system supports two other fundraisers the Children First Walk for Funds and the School Children s Aid Society Each of these solicitations has been assigned a separate and distinct timeframe for its activities so that CPS employees in theory are spared continual requests for charitable giving The reality however is that principals are approached many times throughout the year by well known organizations for permission to host various thons for charitable purposes While principals have the authority to approve or disapprove these requests the Executive Committee for the Payroll Deductions Campaigns urges principals to consider carefully demands on staff and student time Hundreds of these well known established and worthy charities are represented already in the Combined Charities UNCF and HSF drives The authorization of additional numerous campaigns at schools can be additional burdens imposed on CPS employees Organizations Which Have Not Received District Wide Approval for Their Campaigns If the Chicago Board of Education has not approved a district wide campaign for an outside organization then prior approval needs to be obtained from the principal LSC and Area Instructional Officer regarding the appropriateness of the activity If an organization cannot demonstrate an acceptable correlation between the fundraising activity and its benefit to the students then denying the activity s acc
114. ing stored in your office Pack records and label boxes according to the procedure regarding transferring records to offsite storage 4 Complete the Business Records Data Input Form and maintain this information as required 5 Provide CPS Records Management Staff with a copy of the completed form s by Fax or through CPS Distribution 6 Arrange for a pickup of boxes of records to offsite storage 3 Records Disposal A CPS has a record retention schedule that has been approved by the Illinois Records Management Retention and Disposal 6 4 ee Local Records Commission of Cook County This schedule lists how long CPS is required to maintain both student and business related records and is updated from time to time B Records cannot be destroyed before their retention period is over Once the retention period for a record has expired the record is eligible for proper record disposal C CPS employees may not throw away or shred any student or business records D CPS is required by law to obtain approval from the Illinois Local Records Commission of Cook County prior to disposing records Destroying any records prior to obtaining this approval is a Class 4 felony E The CPS Records Management Staff will obtain all necessary approvals for records to be disposed of properly F To dispose of records 1 Contact CPS Records Management Staff for a copy of the Records Management Procedures Forms and Retention Schedule
115. ingual committee should establish a sub account within the school s Internal Accounts These funds are contained in the school s checking account The school should maintain an updated signature card for its checking account This is particularly relevant when an authorized person vacates The signature card should include the signatures of all persons authorized to sign school checks Note Because the FDIC insures deposits up to only 100 000 if a school s checking account is over 100 000 investment options should be considered Who should sign the checks The principal of each school should authorize two or more persons in addition to the principal to sign checks When ordering checks for Internal Accounts be sure to request at least two signature lines on the check Money Handling 2 14 C maamaa C Investments Investment Accounts When are investments appropriate If school funds are not needed immediately schools may choose to invest money in interest bearing accounts Investments must follow the Chicago Public Schools Investment Policy See Appendix F for a copy of the CPS Investment Policy Consult your bank for information on investments offered or talk to your Region Business Manager lg Many investments impose a withdrawal penalty or fee if money is withdrawn prior SC to the expiration date so it is important to know exactly when the funds you are i 7 investing will be needed A rule of thumb is to
116. ion and disposal the CPS Records Management Program has issued Records Management Procedures Forms and Retention Schedule Please contact the Records Management Staff for the most current copy of this information B Each administrative office and department should have an appointed employee to administer and coordinate records management functions C Active records should be maintained so that others may use and find them All required information and dates should be completed on all records D Each administrative office and department should maintain information listing records that are transferred to offsite storage retrieved from offsite storage and disposed The appointed records coordinator should review this information on a regular basis to ensure that information is accurate and that records are disposed as soon as they are eligible 2 Records Storage A Once administrative ousiness records become inactive records may be stored using the Board approved offsite storage facility B Sending inactive files to offsite storage will provide more storage space onsite for active records and help ensure compliance with Board local state and federal requirements C To store records offsite 1 Contact CPS Records Management Staff for a copy of the Records Management Procedures Forms and Retention Schedule and request records management supplies boxes and barcode labels for packing records Review the records currently be
117. ious purposes In response this manual presents different ways of receipting money Money collected in any manner must be deposited with the School Treasurer and a copy of the school Treasurer s Receipt must be provided to the person making the deposit The following is a list of guidelines for specific types of collections Information on completing these receipts and sample forms are included in Appendix B Tracking of concession sales and other fundraising activities is described in Chapter 5 Revenue Generation Collections from Students Teachers who collect money from students should prepare records indicating the amounts collected Examples of collections are field trips graduation fees and activity fees The teacher can use a Teacher Receipt Book or a Payor List to receipt the money Payor Lists are recommended for collections that are the same or standard and have a nominal dollar amounts i e under 10 Receipt books should be turned in after each activity and at the end of each year PLEASE NOTE A Teacher Receipt Book should be used when a parent requests a receipt for the money given or when a significant amount of money is being collected from students i e graduation fees All Teacher Receipt Books must be returned to the School Treasurer at the end of the activity and of the school year A Payor List should be used when the teacher is collecting for the same and standard amount of money from all students i e
118. is sheet should include such headings as Date Issued Book Teacher Receiving Book Reason for using the Book and Date Returned How is a Payor List prepared If a Payor List is used the list must contain the following e Purpose of the collection and or the account to be credited e Name of each student and amount collected e Total amount collected e Date of collection e Signature of the individual who collected the money The list must be submitted to the School Treasurer at the same time the money is submitted and a Treasurer s Receipt must be prepared immediately The School Treasurer must reconcile the money deposited with the total amount on the Payor Lists date deposit and the Treasurer s Receipt number The School Treasurer must maintain the Payor Lists on file Note Payor Lists should be used for nominal dollar amounts only Money Handling ee Tools to receipt record money The following table presents tools used to record receipts Sample forms are included in Appendix B in the manual FORM OR RECEIPT PURPOSE WHERE TO OBTAIN Teacher s Receipt Payor List Treasurer s Receipt Pre Numbered Tickets Concession Sales Report Ticket Accounting Report To provide individual receipts for collections from students and to provide students with a copy of the receipt Best used when students parents desire a receipt or when amounts collected vary To record money collected from students by using a s
119. ith any additional questions your school may have on lunchroom cash processing Tuition Based Preschool Program The Chicago Public Schools CPS offers a Tuition Based After School program for interested elementary schools from September through June Schools are required to remain open until 69m to accommodate working parents schedules If your school participates in this program operating procedures and tuition payment procedures may be obtained from the Office of After School and Community School Programs at 773 553 1499 All tuition payments must be made by check or money order Coupon books will be issued to parents Monthly payments will be sent to a designated lockbox as noted on the coupon book Schools will be responsible for managing their own budgets Money Handling 2 11 I How are NSF checks handled To avoid the possibility of a check being written with non sufficient funds NSF schools are encouraged not to accept personal checks from staff and parents If a check is returned by the bank for non sufficient funds NSF every effort should be made to collect the original amount of the deposit PLUS the NSF fee of 34 00 If a check is accepted immediately stamp or write on the back of the check For Deposit Only The Chicago Public Schools must charge this fee according to Imposition of Charges on Return Payment Instruments Board policy Please refer to Appendix F for additional information on this policy
120. ivity with an outside organization This may occur if an outside organization i e the Parent Teacher s Association Organization has initiated the solicitation and the school has consented to this request Each organization should have its own tax ID number exemptions and bank accounts A written agreement between the principal and the organization indicating the division of profits and expenses must be executed and maintained on file If the school and the outside organization are sharing the profits then the fundraising activity should be recorded in the Internal Accounts Otherwise the fundraising activity is being conducted exclusively by the outside organization please refer to the following subsection Schools should adhere to the following steps when conducting fundraising activities with an outside organization Step 1 Prepare a Local School Fundraising Proposal e The school principal and organization should establish a written agreement indicating the division of revenues and expenses This agreement should be maintained on file e The Local School Fundraising Proposal specifies the percentage of profits the school will receive from the fundraising activity e The Local School Fundraising Proposal should have the signed approval of the principal LSC and REO Step 2 Obtain products for sale Step 3 Conduct sale and deposit collections with School Treasurer e School officials must collect money from the sale of fu
121. l activities in accordance with the rules policies and procedures Authorizing staff to act in the principal s place does not negate the principal s overriding authority and responsibility Local School Council For all Internal Accounts activities Local School Councils LSCs have the authority to approve all receipts and expenditures over 1 000 at elementary schools and 2 500 at high schools for all CPS attendance centers On a monthly basis LSCs have the right to review and approve receipts and expenditures for all school Internal Accounts Each school should submit to its LSC a copy of the Internal Accounts Trial Balance Summary and a copy of the school s monthly bank reconciliation LSCs also approve all fundraising activities by non school organizations using school facilities Administration 1 1 ee School Clerk Treasurer The school clerk Treasurer or other staff person designee is responsible for reporting and receipting all school funds maintaining accurate financial records and following money handling procedures as stated in this manual At the end of each monthly reporting period it is the responsibility of the clerk or designee to make available to the area office the Internal Accounts records for each student activity Teachers When teachers sponsor student activities or serve in a capacity that involves handling school Internal Accounts monies they are responsible to report to the principal and shou
122. ld follow the rules and procedures in this manual Teacher sponsors should reconcile the records of the activity with the Treasurer s monthly report Office of School Financial Services The Office of School Financial Services is made up of the Departments of the Controller General Accounting Accounts Payable Accounts Receivable Treasury School Business Services Treasury and Debt Management Payroll and Risk Management The Office of School Financial Services is under the direction of the Chief Financial Officer and has the responsibility and authority to implement all policies and rules pertaining to the supervision and administration of school Internal Accounts Controller s Office The Controller s Office is responsible for the management and control of all financial matters of the Chicago Public Schools as well as providing direction and management of financial affairs in the schools Bureau of General Accounting The Bureau of General Accounting is comprised of the Reporting and Revenue Divisions The Reporting Division provides service to schools by depositing all non Internal Account related checks answering questions and resolving issues related to Internal Accounts providing accounting related support for the M Y 0 B accounting software program preparing checks and processing requests for position numbers The Bureau of Revenue supports schools by answering questions related to claims and grants Administration 1 2
123. likelihood of fraudulent use Records should create an audit trail which creates path that a transaction traces through a system This allows for verification and consistency of reference numbers dates etc C Transition of Principals Responsibilities for outgoing and incoming Principals The following items should be completed to ensure a smooth transition from one principal to the next These items bring closure to the outgoing principal s tenure and assist the incoming principal with learning the school s Internal Accounts status as well as safeguarding the school s assets Principals should call their Region Business Manager for assistance with these items Any discrepancies must be resolved prior to the change in administration Administration 1 6 I Outgoing Principal e Ensure that the books of record are posted to date e Ensure that the Internal Accounts monthly reports are submitted for the most recent month and that the school is maintaining its records accurately and timely e Verify that the reconciled bank statement and the Trial Balance for the previous month are in agreement e Update Concession Sales Accounting Reports for all continuous sales e Review the Concession Sales Accounting Reports for all sales conducted during the past fiscal year to ensure the accounting of all money merchandise e Ensure that approved Ticket Accounting Reports are on file for the activities in which tickets were utilized
124. m Permits The School Treasurer should receipt all permit revenues using the Treasurer s Receipt Book Permit income must be recorded in General Ledger Account 2 12XX The revenue may be allocated to activity accounts at the school s discretion Step 3 Staff the event as necessary When a school leases its facilities to an outside organization the unit administrator must ensure that the building is adequately staffed to ensure the safety of both staff and visitors Staffing for the event may be provided as follows e Chicago Public Schools employees e Contractors providing privatized services to the school e Parents and community members A Chicago Public School Employees The unit administrator has two methods of staffing the building using Chicago Public School personnel e Adjust employees regular work schedules to meet the school s needs without incurring additional overtime expense e Maintain employees regular work schedules and provide an overtime position to compensate employees for additional hours worked If the school decides to open a position to cover the cost of salaries of employees who work these special events the school must do the following Using Oracle Position Control open an overtime or extended day bucket position prepare a position opening request Request for Position For an overtime bucket position please contact the Office of Management and Budget 553 2560 Prepare a scho
125. made or delegate to another staff member after ensuring proper support for payment exists Local School Council e Approve Internal Account purchases over 1 000 for Elementary Schools and over 2 500 for High Schools Chief Financial Officer e Accept all gifts grants and donations Purchasing 3 7 C mammam Board of Education e Approve purchases 75 001 or more e Approve personal service contracts 75 000 or more B Approved Expenditures Approved expenditures are those that directly benefit the students for which the funds were collected or are used according to the funding source s instruction Funding source guidelines usually take precedence over other requirements ste Reasonable expenditures to transport money to the bank are appropriate j such as cab fare Through the PAYOUT system elementary schools and high schools can be reimbursed up to 5 000 a month for school related expenditures The PAYOUT system reimburses a school from the school s budget line Please refer to the PAYOUT manual for limits on certain object codes To receive a copy of the PAYOUT manual please contact the Department of Purchasing at 553 2280 Purchasing 3 8 C mamaman C Prohibited Expenditures While all prohibited expenditures warrant an audit exception some prohibited expenditures are considered greater infractions than others A number of prohibited expenditures may warrant disciplinary action against the staff me
126. mber s who committed the violation Prohibited Expenditures Resulting In An Audit Exception 1 Expenditures that are not for the benefit of the students 2 Expenditures for which no documentation exists i e approved School Expenditure Requisition Order or the documentation is incomplete Phone orders are prohibited 3 Expenditures that have not been approved by the principal LSC CPO and or Board of Education as required 4 Payments to consultants or outside vendors Oracle account 54125 must receive online purchase orders in order to comply with Federal Internal Revenue requirements Examples of these expenditures include payments to disc jockeys mascots and janitorial services part time employees are not to be paid from this budget line Please contact the Bureau of Purchasing for more information on these procedures 5 Personal insurance protection The Chicago Public Schools carries broad insurance protection coverage for information please contact the Bureau of Risk Management at 553 3310 6 Compensation to staff members and or qualified personnel to regulate and maintain order at school sponsored events With the exception of sports officials all payments to personnel must be processed through the Board payroll systems 7 Professional books and magazines for an individual s personal use 8 Expenses incurred through personal choice regarding attendance at educational functions unless the educational functio
127. n 86 0625 RS1 Resolution Concerning Misappropriated or Misused School FUNS a scsstcscecsnocteedcounlcas nny enaa aaee ii EEEE 4 Imposition of Charges on Returned Payment Instruments ceceeeeeeeeeeteeeeeees 5 InvestMent a9 2 ee ee see a R Peer aren reer er 6 Debt Management Policy sicecse ccnccseeecaysectdeteteced taceaettecnsdeencedeasasuecionepimecsnenuaaneeapetdaends 7 Student Travel reinii errai deve aE a aae aari a aia aa R i 8 Table of Contents jii O_O aaa Insider s Guide to School Business and Internal Accounts Reimbursement for Work Related Expenses cccccceesessseecceeeeeeeeseesseeeeneneeeeees 9 Purchasing Board Report Procedures cccceeeeeeeeeeeseeeeeeeeeeeeeeeeeneseneeeeeetens 10 AO OO EINS r n a e EE A Er Oa E ES 11 Maintenance and Disposal of Assets ccccccceeeseeeeeneceeeeeeeeeneneeeeeeeeeeeeneneeeeeeeees 12 Guidelines for Establishing Elementary and High School Student Fees 13 Policy Regarding Waiver of School Fee S ccceeccsseeeeesseeeeeeeeeeeeeeeeeeaeeeeeeeaaeees 14 Acceptance of All Grants Gifts and Donations c cscccceceeeseeeseneeeeeeeeeeeeeeees 15 Policy on Local School Council Fundraising ccccceeeeeeeeeeeeeeeeeeeeeeneeeeeeesaeeees 16 Retention and Management of Business ReCords ccccccccceeecceeeceeeeeeeeeeeeees 17 Guidelines for Maintenance of Student RecordS ccceeeeeeeeeeeeeeeeeeeee
128. n Sales Accounting Report by checking the appropriate box es on the Perpetual Inventory Card NOTE If the totals pertain to the end of a periodic sale or semi annual reporting period the MUST be posted to a Concession Sales Accounting Report Perpetual Inventory Cards must be attached to the original copy of the Concession Sales Accounting Report to support the information reported Appendix B Cash Receipts Revenue B 11 ee Check Transmittal Form http www cps k12 il us AboutCPS Departments finance forms Check Transmittal Form and Sample pdf Appendix B Cash Receipts Revenue B 12 o aaam Grants Gift and Donations Access Request Form http www cps k12 il us AboutCPS Departments finance Grant_Gift Donation Application Request Form pdf Appendix B Cash Receipts Revenue B 13 nnn Receipt Memorandum http cps k12 il us AboutCPS Departments finance forms Receipt_Memorandum doc Appendix B Cash Receipts Revenue B 14 Ol 0D Appendix C Fundraising e Local School Fundraising Accounting Proposal e Local School Fundraising Accounting Report Appendix C Fundraising C 1 ee Local School Fundraising Accounting Proposal http cps k12 il us AboutCPS Departments finance forms Local School Fundraising Accounting Proposal xls Appendix C Fundraising C 2 ree Procedures for Conducting Fundraising Activities in the Schools For all fundraising activities 1 2 Complete the Local Sc
129. n accountant or bookkeeping service to prepare the books and records E Auditing Each school may elect to have its Internal Accounts records audited by a Certified Public Accounting or Audit Management firm Bookkeeping 4 38 Oe F Checklist and Chapter Review a A clear connection must be established between the Treasurer s Receipts and the Teacher Receipt Payor List or other receipting method a All Treasurers Receipts must be recorded in the ledger a All checks written must be recorded in the ledger a The standard Chart of Accounts must be used to create individual school accounts a All assets purchased with student money must be recorded in the ledger a The books must be reconciled to the most recent bank statement on a monthly basis a The required reports must be submitted to the area office with a copy maintained at the school for the most recently completed month a Electronic media back up files and system access security must be kept in a secured place a If Internal Accounts records are incomplete or out of date then a school may elect to utilize an accountant or bookkeeping service for assistance a Schools may elect to have an independent audit of Internal Accounts records Bookkeeping 4 39 5 Revenue Generation General Guidelines Every fundraising event must have a completed Local School Fundraising Proposal and a Local School Fundraising Accounting Report The Bu
130. n internal audit is the process through which the Department of Audit Services examines a school s financial records and practices A school audit is conducted to ensure that schools adhere to budgets previously submitted Internal Accounts policies and procedures and in some cases federal state and local laws What is an Investigation In cases where allegations of financial improprieties exist the Inspector General is contacted to investigate whether or not such allegations have merit Does the school receive notice prior to the audit Generally advance notice is given for routine audits If notice is not given audit personnel will identify themselves upon arrival What constitutes an audit exception An audit exception is any information and or material or transactions that are contrary to established policies procedures rules regulations and laws What if am not prepared for the auditors A school should always be prepared for the auditors by following the procedures given in this manual For example e The Treasurer s Receipts are recorded in the ledger e The checks written are recorded in the ledger e The Internal Accounts reports have been prepared through the most recently completed month If funds were misused or inadequate records and documentation were kept financial restitution and penalties may be required Depending on the circumstances financial supervision high level monitoring and punitive mea
131. nce cps k12 il us or by contacting the Grant Acceptance Department at 773 553 2394 Q Who should sign the agreement for governmental grants at CPS A The Chief Financial Officer CFO is authorized to sign grant agreements from governmental agencies on behalf of CPS Following the grant acceptance process please contact the Grant Acceptance Department to obtain CFO approval for the execution of any agreements in which CPS will receive funds Appendix G FAQ G 6 aaa Grant Reportin Q Who performs the financial reporting for a received grant A The Grant Reporting Unit is responsible for reporting all financial expenses related to governmental grants including federal funds that flow through third parties such as university Any narrative reporting is required to be completed by the hands on grant administrator who is expensing the funds The Grant Reporting Unit ensures that governmental grant funds are appropriated to the appropriate unit prior to receiving the funds The Grant Reporting Unit ensures collection and proper expenditure reporting and also maintains a file to satisfy audit requests Periodic notices from the Grant Reporting Unit will be sent to schools units if missing documentation has not been obtained Examples of governmental funding agencies include Illinois Art Council Department of Commerce amp Economic Opportunity and Northeastern Illinois University Governmental funding agencies for Central Offic
132. nce of graduation day e Mandatory graduation fees must cover only those items required for participation in the actual graduation day ceremony e Due to student fee waivers separate the mandatory and optional graduation activities Students are entitled to receive waivers for the mandatory fees but are still responsible for optional fees sity Mandatory graduation fees could include items such as cap gown ribbon aE auditorium printing music flowers and speaker fees All other activities connected with graduation shall be priced separately and made OPTIONAL to the student These optional fees may include class gift class luncheon yearbook or other special activities Remember Do Not Overspend Step 1 Plan the graduation ceremonies A committee should establish graduation ceremonies and graduation fees The committee should be formed with representatives of the Student Council parents of the graduating students teachers of the graduating class the school principal and the LSC All uses of fees should be specifically identified Collection for the activities should not be more than the expected costs of the graduation activities wily Consider charging more to cover students that may not graduate to ensure total mandatory costs are covered The basis for the current year s plan may be the prior year s ceremony assuming the ceremony was a success in terms of budgeting planning and delivery Step 2 Obta
133. nd _ Si oneski oooO Bookkeeping 4 21 How are bank deposits recorded in the ledger These procedures are similar except the deposit is always from the Cash on Hand account to the Checking Account Step 1 In Command Center select Checking Account Step 2 Make sure Checking Account is selected Step 3 Enter the date of the bank deposit Step 4 Enter SCHOOL in the Payor section The first time the school makes a deposit a card must be established This indicates that your school is making a deposit Step 5 In Memo field type the purpose of the collection press TAB Step 6 In the Allocation Account field type 1 1200 Cash on Hand Step 7 Review the entry making sure all information is correct and the deposit is made to Checking Account Step 8 Record deposit by clicking on Record ta Make a Deposit Checking Account Balance 0 00 Make sure Checking Account E Date 8 3 98 Enter SCHOOL when Amount 500 00 making bank deposit Pap SCHOOL a Memo TR 933654 933730 Enter the range of the Treasurer s Receipt numbers that cover the deposit Enter Account 1 1200 for deposit Record py Me Use Cancel Bookkeeping 4 22 4 Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Click on Checkbook Click on Write Checks Record disbursements write checks In Command Center select Checkbook In the flowchart click Write Checks This will display the Write Checks windo
134. nd the Chief Operating Officer e Carnival operations The carnival operator must obtain a license from the City of Chicago Department of Revenue to operate a carnival or special event The applicant must provide to the Board s Bureau of Real Estate Management their application for a School Usage Permit and or License This includes a copy of the license documenting the operator s compliance with all City of Chicago ordinances e In cases where school property is leased for conducting any type of amusement for the lessee s organization or where the proceeds do not directly benefit the school s students the amusement may be taxable under the current City of Chicago s Amusement Tax Ordinance and the current Cook County s Amusement Tax The current tax rate for the City s tax is 7 and the current rate for the County s tax is 3 for a combined rate of 10 Be aware that the ultimate responsibility for both taxes rests with the lessor of the property i e the school For more information contact the Chicago Department of Revenue at 312 744 6146 and the Cook County Department of Revenue at 312 603 3723 Revenue Generation 5 2 ee e Copies of the School Usage Permit insurance certificate and special requirements must be sent to the Department of Operations Bureau of Real Estate Not receiving the proper permit and insurance coverage for leasing purposes is considered an audit finding Step 2 Receive Revenues fro
135. ndraising goods in conjunction with the outside organization in order to ensure proper receipt and record of money collected from student purchases e A proper record of the collections must be maintained at the school site e All funds collected must be deposited in the school s Internal Accounts Step 4 Finish sale and prepare final accounting reports e Asummary of the funds collected and the school s share of the revenue must be reported in the school s Internal Accounts e A Local School Fundraising Accounting Report and the Concessions Sales Accounting Report must be completed and submitted to the area office no later than 10 school days after the last date of the fundraising activity Revenue Generation 5 21 re Step 5 Transfer profits to activity accounts e Division of the profits should take place once both parties agree with the financial account of the funds collected and the expenses incurred e Once the school has properly accounted for the fundraising sales the school should submit a check to the outside organization for its share of the revenue 3 Fundraising Conducted Exclusively by Outside Organizations Requests for Charitable Drives Walk A Thons Read A Thons Math A Thons PTO PTA Friends of Schools etc The Payroll Deductions Campaign Resolution 98 0128 RS8 authorizes three separate charitable solicitations during the year the United Negro College Fund the Hispanic Scholarship Fund and Comb
136. neral Ledger Recurring General Journal Entries General Ledger Session Report General Ledger Trial Balance Summary General Ledger Trial Balance Detail General Ledger Click on the Print button to being the process of printing Filters Design Bookkeeping 4 29 How is bank reconciliation prepared using M Y O B The Reconcile Accounts window looks like the check register in a checkbook A few of the features of the Reconcile Accounts window are shown in the following illustration z Reconcile Accounts i Enter the account you want to reconcile in the Account field Last Reconciled Enter the balance that E t of Balance 500 00 appears on your bank L_4 statement ee Mark All Cleared Transactions Deposits Withdrawals Enter last day of the month Click this column next to may not be date of bank all transactions that statement appear on your bank statement Total Cleared 0 00 Reconciles Cancel 0 00 Click Date to sort the transactions in the list by date Click All to mark all transactions in the list Click ID to sort the transactions in the list Click Reconcile after marking your by transaction number cleared transactions to attempt to match your M Y 0 B records with your bank records Out of balance amount should equal zero after all of the above steps Click None to unmark all transactions in the list Bo
137. nes placed at any school Each principal can opt not to have a vending machine In this case the school that has received an EDI pre payment for the previous school year these funds will have to be returned to the CPS Accounts Payable department For any questions regarding this project please contact the Manager of Vending Product Services for the Chicago Public Schools at 773 553 2942 Vending machines maintained by the school Non beverage machines e If the school does not own the machines the school must obtain a signed lease contract for the machines e The school must comply with the following guidelines for continuous sales Obtain approval for activity Prepare a School Expenditure Requisition Order to purchase vending items Deposit funds in school Internal Accounts Maintain inventory Prepare Concession Sales Accounting Reports Revenue Generation 5 28 are Vending machines maintained by the vendor Step 1 Obtain signed contract from the vendor This contract must indicate the profit sharing arrangement and services to be provided by the vendor as well as establish a payment schedule Vendors must be required to make sales data available to the principal in terms of number of products sold and money collected Schools must not enter a vending machine lease that exceeds one year Step 2 Verify collections to school School personnel should verify the amount of money removed from the machine This shoul
138. ng procedures must be followed by LSCs when fundraising for educational activities and incidental operating expenses Revenue Generation 5 24 ee Step 1 Prepare Local School Fundraising Proposal Step 2 Obtain proper approvals Step 3 Conduct fundraiser and deposit collections with School Treasurer e Any event that prevents the LSC from remitting the receipts to the School Treasurer on the day of collection must be explained in writing e All collections must have a receipt and be recorded in a sub account specific to the fundraising activity for the LSC Step 4 Finish fundraiser and prepare final accounting reports e Within 10 school days of the last date of the fundraising activity the School Treasurer must submit to the area office a completed Local School Fundraising Accounting Report and the Concession Sales Accounting Report These reports give an appropriate accounting record along with an inventory of any remaining items e All missing inventory items must be explained in a written statement signed by the LSC and the principal and then attached to the Local School Fundraising Accounting Report e All funds generated from the fundraising activity must be deposited in the appropriate fundraising account e The School Treasurer must verify the ending inventory and the sales receipt e Anoriginal copy of the Local School Fundraising Accounting Report and the Concession Sales Accounting Report must be maintained at the school
139. ng that proves total debit balances equal total credit balances in the General Ledger This is also part of the monthly financial statement required of all schools In accounting each financial transaction is recorded as a double entry This means that each transaction affects at least two accounts For example buying a computer means that the cash account is decreased and the asset account is increased Section A of this chapter provides additional information on basic accounting procedures and records Bookkeeping 4 3 Accounting Basics 1 Set up your Chart of Accounts Schools should set up accounts based on their individual financial requirements This Chart of Accounts was created designating a few key accounts This allows the freedom to create the necessary accounts at each school and the opportunity for an outsider to quickly understand the accounts The Chart of Accounts is based on five digits e The first digit is always 1 2 or 3 Use 1 for Assets 2 for Revenue Expenses and 3 for Equipment e The second digit can be used to provide greater levels of detail particularly in the revenue accounts For example account code 2 2000 is the general category for income and disbursements for class activities e The third digit can be used to identify a specific group such as 2 2100 for science e The fourth and fifth digits can provide greater detail such as 2 2110 for biology and 2 2111 for freshman biology This
140. ns are reimbursed through the school budget line 9 Floral pieces and other remembrances for members of the Board of Education personnel of the Chicago Public Schools or members of their families An exception to this rule is allowed if students collect funds specifically for the remembrances of staff members students and or their family members Purchasing 3 9 i 10 Personal or non school related travel expenses and parking fees for students or staff except for expenses incurred to take money to the bank 11 Membership or payment of dues for professional organizations that are a direct benefit to an individual 12 Luncheons refreshments or reservations which are not for the benefit of the students or the school program such as promotions and retirement Board of Education and Chicago Public Schools outings staff development activities school socials and other similar functions Prohibited Expenditures Resulting In Disciplinary Action 1 Expenditures that are contrary to the Code of Ethics of the Board of Education Please refer to Appendix F for additional information 2 Contributions to fundraising drives or charitable organizations not authorized by the Chicago Board of Education Please refer to Chapter 5 Revenue Generation for additional information 3 Gratuities or gifts which relate to one s work assignment or for services which have been or may be rendered by members of the Board of Education per
141. o and Confidentiality of Student Records 04 0623 P03 e Compliance with Freedom of Information Act Requests 00 0524 PO1 Please visit the CPS Policy Website at http policy cps k12 il us for the Records Management Policies and all CPS policies The above policies may also be located in Appendix F of this manual Records Management Retention and Disposal 6 1 ee Schools oh General To help the schools follow CPS policies on records maintenance retention and disposal the CPS Records Management Program has issued Records Management Procedures Forms and Retention Schedule Please contact the Records Management Staff for the most current copy of this information Each school principal is required to appoint a school employee to act as records custodian This individual is responsible for the maintenance care and security of school records Schools maintain both student records and school business related records Both student and business related records should be stored in the school while the records are active Active records should be maintained so that others may use and find them All required information and dates should be completed on all records Each school should maintain information listing records that are transferred to offsite storage requested and disposed Records Storage Once student and business related records become inactive records may be stored using the Board approved offsite storage
142. o maintains a list of approved vendors and provides vendors with Vendor Identification Numbers The Purchasing department also conducts specific iProcurement and other training Homeless Education Program The Chicago Public Schools CPS provides an educational environment that treats all students with dignity and respect Every CPS homeless student shall have equal access to the same free and appropriate educational opportunities as students who are not homeless This commitment to the educational rights of homeless children and youths applies to all the services programs and activities provided or made available by CPS To create the appropriate educational environment and opportunities for CPS homeless students CPS has a Homeless Education Program documented in the Homeless Education Program Manual Request for copies of this manual and any questions on the Homeless Education Program should be addressed to Chicago Public Schools Office of Instruction and School Management 125 S Clark Street 8 Floor GSR 125 Attention Coordinator Homeless Education Program Phone 773 553 2242 Fax 773 553 2182 Administration 1 4 C mamaman Inspector General The Office of the Inspector General OIG is an independent body accountable directly to the Board This group is charged with investigating allegations of waste fraud and financial mismanagement within the Chicago Public Schools The OIG investigates allegations of employee re
143. ofits will be paid out of the Internal Accounts by the school Complete the Local School Fundraising Accounting Report This form requests a financial account of the actual money collected expenses incurred and profit made from the fundraising activity This report is due no later than 1 week from the closing date of the fundraising activity For fundraising activities conducted by an outside organization i e College Fund UNCF United Way National Hispanic Scholarship Fund 1 Ensure the organization is an accredited group or agency approved be the Chicago Board of Education to host a fundraising activity in the schools You may call the Bureau of General Accounting to verify this fact School personnel may serve in a capacity to collect the funds Checks should be made payable directly to the organization If cash is received it should be deposited with the School Treasurer who will write a school check payable to the organization for the same amount of cash received Appendix C Fundraising C 3 ee Local School Fundraising Accounting Report http cps k12 il us AboutCPS Departments finance forms Local School Fundraising Accounting Report xls Appendix C Fundraising C 4 O_O aaa Appendix D Cash Advances Payables and Purchasing e School Expenditure Requisition Order e Requisition Worksheet e School Cash Advance Reconciliation e Web Inquiry e Oracle Budget Transfer Tool e Reimbursement Form e Letter of
144. okkeeping 4 30 8 Keep accurate complete records The school must maintain paper copies of the monthly reports submitted to the area office A back up data disk CD NOT THE HARD DISK DRIVE should be maintained in a safe place in case of a system crash A back up data disk CD must be sent to the area every three months with the monthly report The disk CD should be labeled with the following e School Name e Month beginning date month ending date e Treasurers name and phone number 9 Other bookkeeping procedures specific to M Y 0 B M Y O B allows the user to establish cards or user profiles for vendors and depositors These are useful when recording multiple deposits of money from individuals or making multiple payments to vendors Additionally M Y 0 B allows transactions to be easily reversed if necessary Bookkeeping 4 31 How is a card for depositors or payees created Step 1 In Command Center select Card File Step 2 Select Cards Step 3 Select New Step 4 Indicate the Card Type the depositor Teachers are Employees while outside depositors such as the Board of Education or Grantors are Customers Step 5 Type the person s last name press TAB then type the first name Step 6 Type any other optional information including mailing address for vendors Notes may be useful such as teacher s room number activities sponsored by the individual etc Step 7 Click OK M Y
145. ol check to the Board for the anticipated amount of overtime paid to staff Submit to the Bureau of Revenue the following documents for processing Revenue Generation 5 3 ee v A copy of the Request for Position request v A school check to cover anticipated personnel expenditures v A check transmittal form indicating the budget lines to be loaded v Any additional documentation indicating source of funds reason for request and other pertinent information v Starting in early FY2005 schools will be able to add money to Fund 280 124 by completing the Special Income Fund transaction form via Oracle Details of this new process will be provided in the future Once the position is opened it may be used for future events in that fiscal year If additional funding is required the school has to remit a check to the Bureau of Accounting cover the amount of additional overtime Special Note Standard Cost Accounting methods should be used to calculate what fees are charged Schools can charge users for indirect costs such as overhead heating lights etc Other actual costs may be charged such as staff salaries when leasing school property to outside groups B Contractors Providing Privatized Services to the School When a private company handles the school s custodial functions the normal working hours are the responsibility of the Chicago Public Schools When additional hours are needed to cover an event such as auditorium
146. onic media such as diskettes or CDs containing the Internal Accounts records Original records such as invoices and receipts must remain at the school at all times e Consultants hired to work on school Internal Accounts must not remove original documents and books of record from school grounds What bookkeeping procedures are required each month The accounting cycle is a complete sequence of procedures that are repeated every month There are four aspects Recording information about each transaction on a business form Recording the daily transactions in a journal Transferring data from a journal to a ledger Preparing monthly financial reports The monthly financial statement must be sent to the Area Office and made available to the LSC What are an Asset and a Liability Asset An asset is a property or property right of a school that has monetary value Assets are further divided into liquid assets those that can be readily converted to cash and non liquid assets which can be defined as all assets other than liquid assets Examples of liquid assets include but are not limited to checking accounts cash on hand certificates of deposits and other investments Examples of non liquid assets include but are not limited to assets donated assets and prepaid items that cannot be readily converted to cash Liability A liability is a debt or other legal obligation arising from previous transactions that must be pai
147. opriately used e Whether funds received from federal state or locally funded programs were improperly used documented or unaccounted for A school placed on financial supervision may be subject to one or more of the following measures e Mandatory training of appropriate staff e Ongoing monitoring of Internal Accounts and financial activities e Appointment of a financial receiver e Issuance of a Warning Resolution e Restitution The remedial measure imposed shall be reviewed periodically but no less than every six months and shall be progressively removed or abated as warranted by the school s progress toward correcting the deficiencies identified Administration 1 12 I H Educational Crisis What is an educational crisis The Chief Executive Officer has the power to determine when a school is undergoing an educational crisis and to authorize immediate corrective action Many criteria are used to determine the existence of an educational crisis Examples include repeated failure by the principal to properly spend all school funds including the budgeted discretionary and Internal Accounts funds What happens if a school is declared to be in the midst of an educational crisis Should the Chief Executive Office declare a school in educational crisis then a plan shall be implemented to ensure educational stability at the attendance center and alleviate the crisis Please refer to Criteria Gove
148. ove and retain all student timesheets Effective with 1998 summer programs the Bureau of Payroll Services pays all non board non student employees through the miscellaneous payroll system All questions regarding miscellaneous payroll should be directed to the Bureau of Payroll Services at 553 2660 For additional payroll information please visit the Payroll links Budget Handbook for Schools http www csc cps k12 il us omb BudgetHandbook and Payroll guidelines http www csc cps k12 il us omb BudgetHandbook revD payroll pdf Beginning of School Year Resource Manual http cos k12 il us programs bosy index html and its Payroll Services section http cps k12 il us programs bosy pdf sect5 pdf Planning Your Summer Program http cps k12 il us programs sp index htm and its Payroll Processing section http cps k12 il us programs sp pdf payroll pdf Reimburse the Board for the increased cost associated with the use of the building and or grounds Send to the Bureau of General Accounting permit fees used for salaries and stipends with any remaining fees retained in the Internal Accounts Make a school check payable to the Board of Education of the City of Chicago and submit the check to the Bureau of Revenue to cover the personnel costs associated with the event Use the Check Transmittal Form as shown in Appendix B and prepare a memo indicating the amount to cover each position number or budget classification used
149. owever when group participation is anticipated i e charitable contributions field trips graduation workbooks etc a list of payor names will be acceptable in lieu of duplicate receipts 1 Teacher s Receipts should be prepared in ink and must show the date the money was received the amount received cash or check the purpose of the collection and the person from whom the money was received The person receiving the money must sign all receipts 2 All receipts must be prepared in duplicate with the original copy issued to the person from whom the money was received and the duplicate copy kept intact in the receipt book 3 Receipts must be issued in numerical sequence 4 When it is necessary to void a receipt the word VOID should be written in BOLD letters across the face of the original and the duplicate copies of the receipt left intact in the receipt book 5 All money collected must be deposited daily with the School Treasurer The Teacher s Receipt book or a list of payor names as noted above must be presented to the School Treasurer when deposits are made 6 Each time the receipt book is presented the School Treasurer must complete the reverse side of the last duplicate receipt in the Teacher s Receipt Book covering deposits with the School Treasurer 7 Receipt books must be returned to the School Treasurer after each activity These receipts books are to be reissued for the next event All receipt books must
150. pecific budget line A Because of a separation of powers between Finance and the Office of Management and Budget the Office of Management and Budget is the only CPS department authorized to load funds to a budget line This process provides for a check and balance system between depositing and loading funds to budget lines to exist Appendix G FAQ G 3 ee Q What are 280 funds A Fund 280 is the Special Income Fund This fund includes monies received from grants and donations from various foundations individuals charitable civic organizations and private corporations as well as rental income of school areas parking lots auditoriums classrooms etc Fund 280 balances are carried over from year to year Please refer to http www cps k12 il us AboutCPS Departments management Fund_280 pdf for additional information Q What department do I contact for fund 280 requests A Please contact the Office of Management and Budget for fund 280 requests Q How are non sufficient funds NSF check handled in our internal accounts A Pursuant to Board Policy 403 7 http policy cps k 12 il us documents 403 7 pdf a CPS unit should charge a return payment fee of 34 00 in addition to the original amount due from the payer Please post signs to inform parents and others of the NSF fee Q What is procedure for rental income A Rental income should be deposited into the school s internal accounts These funds may be us
151. pening a position For additional information please refer to the Budget Handbook for Schools Section D Legacy Oracle Benefit Object Account Local SGSA Federal State General Liability Insurance 5490 54530 XXXX 0 20 0 20 XXXX Teacher Retirement Pension 5620 57135 7 00 7 00 17 57 7 00 Unemployment Compensation 5640 57505 XXXX 0 20 0 20 XXXX Worker s Compensation 5650 57605 XXXX 0 70 0 70 XXXX Education Support Personnel Pension 5670 57205 7 00 7 00 17 63 7 00 Hospital Dental Life Insurance 5680 57305 5 800 5 800 5 800 5 800 Medicare Tax 5681 57405 1 45 1 45 1 45 1 45 Social Security 5681 57405 6 20 6 20 6 20 6 20 Medicare and FICA are Social Security taxes and equal 7 650 The gross cost per employee for the fiscal year for health and dental insurance is 5 800 5 800 less an employee s contribution The group life insurance cost is included in the amount Cost is estimated by fund and is subject to change All CPS employees hired after March 31 1986 are required by federal law to pay 1 45 of their earnings CPS is mandated to match the same 1 45 for the eligible employees Employees who are not covered by one of the CPS pension plans are required by federal law to have Social Security deductions This includes non board employees and high school students working under a B bucket Oracle Account 52140 or legacy Object 5214 T
152. pment Register An Asset Transfer Disposal Form should be completed to remove the asset Creating a logging in and out system as to who is in possession of school assets and equipment for items that are removed from school property will not only provide easier tracking but also allows for more accurate records This log is especially helpful if the items cannot be located or are broken or stolen Additionally the log can aid with the scheduling of resources equipment and assets 6 Transfer between accounts general journal entries Journal entries are used to make inter account transfers adjustments due to posting errors and recording of furniture and equipment on the books of record The principal s approval is required to make an entry but the approval of activity sponsors must be obtained when transferring or making loans between activity accounts The specific record keeping requirements are covered in this chapter Bookkeeping 4 11 7 Avoid negative balances Negative balances occur when an activity sponsor overspends his her available funds For example if an English teacher has 500 in an account and a disbursement is to be made for 700 for supplemental educational materials a transfer of funds is required to avoid the ensuing negative balance Activity accounts must not be overspent By creating a negative balance in a liability account the activity is spending another activity s money LOANS or transfers between
153. ppendix F Policies and Procedures F 13 ee Policy Regarding Waiver of School Fees http policy cps k12 il us documents 408 1 pdf Appendix F Policies and Procedures F 14 C a Acceptance of All Grants Gifts and Donations http policy cps k12 il us documents 403 3 pdf Appendix F Policies and Procedures F 15 C eee ee Policy on Local School Council Fundraising http policy cps k12 il us documents 401 7 pdf Appendix F Policies and Procedures F 16 ee Retention and Management of Business Records http policy cps k12 il us documents 203 2 pdf Appendix F Policies and Procedures F 17 ee Guidelines for Maintenance of Student Records http policy cps k12 il us documents 706 1 pdf Appendix F Policies and Procedures F 18 C aaam Parent and Student Rights of Access to and Confidentiality of Student Records http policy cps k12 il us documents 706 3 pdf Appendix F Policies and Procedures F 19 C amaaan Compliance with Freedom of Information Act Requests http policy cps k12 il us documents 203 1 pdf Appendix F Policies and Procedures F 20 O_O O raame State Chapter 1 Expenditure Guidelines http policy cps k12 il us documents 401 5 pdf Appendix F Policies and Procedures F 21 ee Appendix G Frequently Asked Questions Controller s Office General Accounting Q What departments are under the Office of School Financial Services A The Office
154. r extracurricular activities These activities must enhance the school s ability to provide a well rounded learning environment for the students With the principal s and Area Instructional Officers permission policy allows all formal groups consisting of students and a faculty sponsor to conduct fundraising activities A policy adopted in February 1997 by the Board of Education states that within certain boundaries Local School Councils LSC s have the authority to raise funds at the school which they serve for LSC incidental operating and legitimate educational related expenses Please refer to Appendix F for the CPS policy on Local School Council Fundraising The following procedures provide clear instruction on how funds collected during fundraising activities must be handled and recorded to ensure that the funds solicited from the students and school personnel are not abused or misrepresented Furthermore these procedures shall be followed for all sales of tangible property conducted by the schools groups raising money for the schools or groups raising funds using the school name and involving school personnel or students Fundraising activities conducted by informal groups or groups not following these procedures are prohibited Limiting all types of school fundraisers school LSC Parent Teacher Organization etc to three per year is not overburdening to students school and outside groups Always ensure cla
155. r services should be received prior to paying for them The individual receiving the goods must acknowledge the receipt using an acknowledgment stamp or by signing and dating the invoice Purchasing 3 5 Step 6 Step 7 It is recommended that the principal assign a staff person s to receive and record the bill of lading or packing slip when the goods are delivered to the school This person can then reconcile the goods ordered against the goods received allowing proper payment to be remitted For auditing purposes please maintain all proofs of delivery If the payment is to reimburse staff for a purchase the staff member receiving payment should not sign the check For example principals should not sign checks made payable to themselves Receipts for the reimbursement should be submitted prior to release of payment Schools are encouraged to use the M Y 0 B check writing feature Once a vendor is in the system the system automatically prints the address and records the transaction in the appropriate account Envelopes with clear windows for the vendor address can be purchased to save typing or printing a label Computer printed checks are available from office supply companies and M Y O B Write a check The school should pay the vendor only when the following three criteria have been met e The purchase has been approved by the principal and LSC and Board if necessary and a requisition order has been issued
156. raising projects should contribute to the educational experience of pupils in accordance with the School Improvement Plan SIP Long range projects for which adequate funds cannot be raised in one fiscal year must be included in the SIP and approved by the principal and LSC Projects of this type may include efforts to acquire new band uniforms pianos athletic equipment or other items More information on fundraising is included in Chapter 5 Introduction iv aaa What if am a new principal or a new clerk New principals have resources available to help them understand and take charge of their school s finances Chapter 1 Section B Changing Principals lists some of those resources and provides a checklist of actions to get a new principal started If financial records are not available or are not in good order call your Region Business Manager for assistance New clerks have training available in the areas of payroll purchasing budgeting grant acceptance Internal Accounts and the Internal Accounts software M Y 0 B New principals and clerks can receive training on the Internal Accounts procedures by contacting their Region Business Manager Training on the Internal Accounts software M Y 0 B is available by contacting the Office of School Business Services What do the icons mean Throughout the manual we have used the following icons to help you quickly locate information Mandatory Board policy Important
157. re a formal written response that includes not only plans to correct the issues but also plans for new procedures to prevent future occurrences This should be sent to General Accounting and to the Region Office Q When and how often should I deposit money A Money should be deposited at least once a week It is best to do this at the end of the week so that money is not left in the school over the weekend Q How do get Receipt Books A To order receipt books call All Printing and Graphics at 773 553 3048 Q How is M Y 0 B installed on my computer A Contact 3 HELP and put in a job ticket Please note that OTS should install MYOB 7 Plus not MYOB 7 5 If this is a first installation and initial use of MYOB please call 773 553 2712 or 773 553 2714 and request the data disk that includes the CPS chart of accounts Q What documents should I maintain for all purchases A Packing slips and original receipts must be kept on file at the schools Q How should goods be received at my school A Each school should have a central location where all goods are received Once the packing slip has been matched with the items delivered the items should be receipted in the Purchasing system within three days Then the goods may be delivered to their final destination s Appendix G FAQ G 12 ee Q How do I calculate benefits for positions A The following table provides all benefit rates that are needed to apply when o
158. reau of Real Estate is available to help schools realize opportunities to lease their property A Ticket Accounting Report must be prepared for all school events where tickets are sold Schools must retain the proceeds from sales of school pictures in their Internal Accounts until the photographer delivers the product and properly invoices the school Any non governmental grant gift or donation must be reported to the Chief Financial Officer A Perpetual Inventory Card and a Concession Sales Accounting Report must be maintained for all continuous sales Schools are encouraged to find new sources of revenue School funds should be used during the period the funds are raised and for the purpose intended Excessive fund balances at the end of the school year indicate that more funds were generated than were needed by the school School administration should develop a written plan to be approved by the LSC for the use of these additional funds The plan should include the following items Source of the funds Proposed use of the funds such as the purchase of new band uniforms cabling for networks computers etc General estimate of the cost for which the funds are being raised Time frame for the use of the funds Revenue Generation 5 1 re A Permit Fees and Leasing School Property Permits are required for the ONE TIME OR OCCASIONAL use of the school building or the school grounds by a non Board of Education entity These
159. record keeping What do you mean by spend the money in the proper time frame and for its intended purpose School funds must be spent only to benefit those students currently in school who have contributed to those funds Fundraising projects must benefit the student body and the school program that collects the money As a general rule try to spend 95 of all funds credited to your Internal Accounts within the school year when they were raised Funds deposited in the school s Internal Accounts by the Board such as teacher instructional supply funds carfare and State Chapter funds must be spent during the year for which they were budgeted Unspent funds should be returned to the Board Introduction jii I Fees gifts grants and advances collected for specific purposes must be spent only for their stated purpose Funds from the student body must be spent to benefit the student body Finally be aware of prohibited expenses Chapter 3 Section C Prohibited Expenditures lists expenditures that are prohibited by either Board rule or policy Will I be audited Internal and external auditors visit schools throughout the year Most of the visits will be announced but some will be unscheduled Audits are an opportunity to show your community your good financial management skills At the end of each section School Financial Services reviews what is necessary to meet our auditors standards for Internal Accounts If you us
160. rental the additional hours worked by the private company s employees are the responsibility of the school The additional hours must be paid from rental fees collected from the event The school should pay the private company from the Internal Accounts only when the company has provided to the school an original invoice detailing all charges for the event A common misunderstanding paying an individual who provides a service versus a company with an employee who provides the service Please ensure that you pay the correct party from Internal Accounts C Parents Community Members and Students Being Paid Through Miscellaneous Payroll The school administrator may choose to use parents and other community members to work an event The administrator must adhere to all current guidelines pertaining to payroll standards Effective as of the summer of 2005 all student stipends will be paid through an electronic card E Card and not via paychecks As CPS moves towards a paperless environment transferring all student stipends to an E card is part of Revenue Generation 5 4 Step 4 the process The E card allows money to be loaded automatically to the card and accessed much like an ATM debit card A physical check is not printed and distributed Other benefits of the card include quicker payment reconciliation and correction methods Misplaced cards can be replaced by contacting the Payroll Services Program supervisors should be appr
161. res Step 1 Identify vendors and get bids quotations The school can decide which vendors to use when spending its Internal Accounts money Vendors may be selected by price location past relationship or recommendation For some purchases the Department of Procurement and Contracts has identified approved vendors Formal bids are required by the Illinois School Code for purchases 10 000 or greater Informal bids telephone or direct inquiries can be solicited for purchases under 10 000 For purchases less than 10 000 the school must comply with the 3 bid rule The 3 bid rule states that three bids must be obtained in writing for the purchase The bids should be on the vendor s letterhead and can be received via facsimile The school is not obligated to take the lowest bid However for auditing purposes the bids should be retained in a file labeled Bids Received Exceptions to this rule include copyrighted materials and consultant services For the procedures on how to prepare formal bids for purchases 10 000 or greater the school can contact the Bureau of Purchasing at 553 2280 Tam EB Remember to obtain multiple quotes for large purchases to ensure that the school is receiving a reasonable price for services or goods Step 2 Prepare a requisition order The teacher sponsor should prepare the School Expenditure Requisition Order to indicate what is to be purchased with Internal Account funds
162. res schools to maintain a paper copy of reports and a backup diskette of the data file as of the reporting period A backup diskette CD should be sent to the Region Office quarterly The paper copies and diskettes CDs serve as mutual backups of Internal Account Financial Records as of the Reporting period Each month prescribed copies of the printed monthly reports should be sent to your Region Office A backup diskette CD of the date file as of the end of each quarter must be sent to your Region Office This process ensures that a copy of that information is on file if it is needed Q Why do have to document every purchase and receipt A Every purchase and receipt must be documented to verify that funds are being used appropriately Q How can I learn how to use M Y 0 B A School Business Services offers M Y O B training In addition an M Y 0 B Training Manual is located on the web at http www cps k12 il us AboutC PS Departments finance myob pdf Q Is my school required to use M Y 0 B A No however every school must use an automated accounting package M Y O B is the recommended accounting software for the Chicago Public Schools Appendix G FAQ G 11 ee Q Will know before my school is audited A Most audits are announced Some however may be unscheduled Thus schools must always be prepared for an audit Q What should I do if my school receives an audit exception A You must prepa
163. revent access to the funds Revenue Generation 5 15 ee The principal of the local school is responsible for the reporting implementation and management of all school based grants gifts and donations from non governmental agencies When a local school receives a grant gift or donation the principal is responsible to report this information to the Chief Financial Officer through the grant acceptance process In addition to ensure adherence with all CPS policies the principal is also responsible for expending the funds in accordance with the terms budget and liquidation requirements of the grant Please refer to Appendix B or the following website for the Grants Gifts and Donations Access Request Form http www cps k12 il us AboutCPS Departments finance Grant_Gift Donation A pplication Request Form padf Benefits of the Process e An E mail is sent automatically with a Request Number to acknowledge entry once the application is completed in Oracle e CFO reviews all required documents and then accepts or rejects request e Another E mail is automatically sent to the requester at the time the grant gift or donation is accepted When the CFO enters the status of the Acceptance in the system this E mail also is sent to the Offices of Management and Budget and External Resources e The receiving unit should confirm that OMB has an agency approved budget and has enough information to correctly load the funds e A third au
164. rity as to who is in charge of each fundraiser LSC PTO combination etc so that funds may be collected deposited and managed by the correct organization When required by the LSC always remember to complete a Local School Fundraising Proposal for all fundraising activities Please review individual LSC policy for applicability A School Expenditure and Requisition Order form must be completed and approved by the LSC if applicable Disbursements related to fundraisers need approval if the disbursement exceeds the amount requiring LSC approval i e 1 000 for elementary schools A fundraising proposal must be prepared and approved by the principal REO and LSC if applicable for all fundraising activity prior to the beginning of the activity The Local School Fundraising Proposal must be used Please see Appendix C for a copy of the Local School Fundraising Proposal Revenue Generation 5 17 ee This proposal requests information such as e Time frame for the sale e Items to be sold e Selling price e Anticipated revenue cost and profit e Appropriate signatures and approval e Intended use distribution of the profits For fundraising performed through concession sales a concession sale plan must be prepared by the faculty sponsor This concession sales plan must be approved by the principal and LSC at the beginning of the year The three different types of concession sale agreements schools can enter include a one tim
165. rning the Determination of Educational Crisis for additional information Please refer to Appendix F for the CPS Policy on Educational Crisis Administration 1 13 I l Checklist and Chapter Review a The Cluster or Region Business Manager should be contacted for assistance during the principal s transition a Anew principal must ensure the signature cards and passwords are changed a The new principal must run a report on all open purchase orders to give consent for spending proposals a The new clerk should contact the School Business Services for training on Internal Accounts procedures a A school may be placed on financial supervision if it violates policies associated with maintaining the Internal Accounts a A school may be considered to be in the midst of an educational crisis if it fails to keep accurate Internal Accounts records Administration 1 14 L gt 2 Money Handling General Guidelines e All money collected from the students should be properly receipted using a Teacher s Receipt Book or Payor List and Treasurer s Receipt Book e All money received by the school must be receipted and recorded by the School Treasurer in the Cash Receipts Journal e The School Treasurer Business Manager Operations Manager or Clerk is responsible for handling all Internal Accounts transactions cash and paperwork e All money should be deposited in the bank as soon as possible for safekeeping A
166. s cccccceeeees 5 26 I Vending Machines Beverages c ccecccceeeeeeeeeeseeeeeeeeeeeeeeeseseeneeneeeeeeenees 5 27 J Other Revenue Sources sessiccsncneccaccrncssdesandecndaiescenseevaaneraeeas Qieueedend teen teedobaenande 5 31 K Checklist and Chapter REVICW cccccccceeeeeeeneeeeeeeeneeeeeeeeeeeeeeeeeeeeeeesenaeeees 5 32 6 Records Management Retention and Disposal ccccccceccccececeeceeeeeeeeeeeeeees 6 1 A SOOO cenian a a e E a a aaee a a a 6 2 B Administrative Offices and Department ccccceeeeeeeeeeeeeeeeeeeeeeeneeeeeeeneeeeeees 6 4 Appendix A Internal Accounts scx sacoeseectecsicenceotecuat steed oe aerate ect eeiet 1 Ch rt OM NCO OUI siiente ni baacs dedii ripiani e anea EACEA Ee ERE E Ea TE Eer 2 Trial Balance Sample onneeeesnnneeeonneneeeenerrsttrsstrrnterttertsertrnoternnntrnnenrseeetnneennn nenene 3 School Sport Officials FOTM scenei aa Eaa E ad aa E RA 4 Petty Cash Reconciliation ox cisisscccececcehcaasncters cananierancadicecsaddsasiecteoctirtaadiecananzeaantentnd 5 Student Fee Waiver FOM asses escecee a aleseete cn derdeestia deans eteetaa 6 Tax Identification and Exemption Letter cccccceeeseseseeceeeeeeeeeeeeeeneeeeeeeeeeeeeeees 7 Appendix B Cash Receipts Revenue c ccceeeecceeeeeeeneceeeeeeaaeeeeeescaaeeesessaeeseneeneeees 1 Bi gers S10 c ga Recept meramera eee ee ee ee eee 2 GAUGING Ge GUO oats ses seats ances emar
167. s Bureau of Payroll Services The Bureau of Payroll Services provides correct timely and professional payroll services including maintaining accurate earning reports to the schools and employees at the Chicago Public Schools Kronos support and training are also offered by Payroll Services Bureau of Risk Management The Bureau of Risk Management is responsible for maintaining liability and property insurance managing claims establishing contractual insurance requirements maintaining the field trip vendor list and administering the extracurricular athletic injury program Administration 1 3 C amamma Bureau of Real Estate The Bureau of Real Estate falls under the Operations Department This bureau prepares all Board reports related to the lease or permit income raised from the use of school property Sale of real estate also is processed through the Bureau of Real Estate Office of Management and Budget The Office of Management and Budget assist with handling approving and setting up all grants and gifts from both government and non government sources This office also maintains a database of available gift and grant donors This Office must be notified of all gifts and grants received directly by the school Department of Procurement and Contracts The Department of Procurement and Contracts is responsible for the delivery of quality goods and services at the lowest cost from responsible vendors This department als
168. s and parents only e Schools and area offices only Elementary amp High Schools 2 000 per month per account code Please refer to the PAYOUT manual for account codes and current dollar limits Purchasing 3 16 Step 2 Step 3 Step 4 When requesting money through PAYOUT keep track of each request and the activity account The reimbursement you receive will be one amount for all recent requests Please use the School Cash Advance Reconciliation form to record this reimbursement Timeliness in requesting these reimbursements will keep your accounts from having negative balances and will make reconciliation easier Prepare Treasurer s Receipt when funds are received by check A school Treasurer s Receipt must be completed when the school receives a check The receipt should indicate the check number in the Received From Section Record receipt in Ledger The receipt should be recorded in the ledger using a pre established account in the Board of Education Funded Account 2 7XXX Prepare year end reconciliation For all cash advances requested by the school please use the School Cash Advance Reconciliation form in Appendix A Additionally any remaining funds over 10 must be sent to the Board with the reconciliation and the Check Transmittal Form These documents should be sent to Bureau of Accounting and Revenue 125 South Clark 14 Floor Chicago IL 60603 GSR 125 773 553 2710 Should the remaining bal
169. s schools to continue the practice of depositing local funds from Internal Accounts activity into neighborhood banks What should be considered when choosing a new bank wee e Confirmation that the Federal Deposit Insurance Corporation FDIC insures the bank oa e Location close to your school for more convenient deposits unless armored car service is provided e Banking fees many banks offer no fee checking e Hours of service e Investment options offered Money Handling 2 13 I e Other schools experiences with the bank e Willingness to work with the school on financial service needs e Monthly statement format and closing dates Checking Accounts How many checking accounts can a school have A Only one checking account in the name of the school is permitted If a school has more than one checking account in its name then that is considered an audit exception Schools should not have more than one checking account The principal of each school should authorize two or more persons in addition to the principal to sign checks If other groups associated with the school wish to establish checking accounts the accounts must be established without using the exact name of the school and without using the Chicago Board of Education s Federal Tax ID number Please refer to Appendix A for a copy of the CPS Tax Identification and Exemption Letter However intra school organizations such as the LSC and the bil
170. sible for protecting the interests of students and taxpayers Time management specialists can demonstrate how much faster and more efficiently records can be maintained if information is tracked immediately rather than waiting several days or weeks Tracking your spending on a regular basis lets you know how much money is available so that you do not over or under spend your budget Good documentation helps you and your LSC work effectively toward your goals and can keep you from being accused of mismanagement Failure to keep accurate records can result in an audit exception potentially placing your school on financial supervision Chapter 4 gives more specific instructions for good record keeping What records do I need to keep The management of school funds must follow the same business practices including budgetary accounting and auditing procedures that are used for regular Chicago Public Schools funds All funds received by the school must be receipted The original invoices and receipts must support all disbursements All records must be kept at your school As a rule all schools must maintain paper copies of the following records which should be updated on a monthly basis Reconciliation Report Trial Balance Summary Cash Receipts Journal Monthly Bank Statement Cash Disbursements Journal School Equipment and General Ledger Furniture Register General Journal Chapter 6 provides specific details on this important task of
171. sidency student residency tuition fraud employee misconduct including theft falsification of attendance records misuse unauthorized use of CPS property misappropriation of funds misuse of the internet and any criminal activity engaged in by employees on or off duty Also the OIG investigates allegations of vendor misconduct including breach of contract over billing M WBE fraud etc Area Instructional Officers AlOs Each area office is led by an instructional officer Area Instructional Officers AlOs are in charge of two teams an instructional support team and a management support team Instructional Officers conduct regular instructional walk throughs and meet regularly with leadership teams to evaluate progress on goals Region Cluster Business Managers The Region Business Managers provide administrative support to their schools This support includes answering bookkeeping questions advising on purchasing questions and training of school personnel The Region Business Managers are trained in M Y O B School Business Managers and School Operations Managers School Business Managers and School Operations Managers report directly to the principal They are responsible for various administrative functions and duties These positions provide the principals with additional support of their day to day functions The individuals in these positions work with the school area and central office staff to deliver services to
172. sification are used to record all non student purposes i e teacher s social fund to which teachers contribute their own money or proceeds from teacher only vending machines Non Depreciated Equipment 3 1000 This account is used to balance the entry when furniture and equipment is purchased This account should always be the same amount as Fixed Assets 1 4000 2 Record cash receipts The approved Treasurer s Receipt format may be located in Appendix B As money is deposited with the Treasurer a Treasurer s Receipt must be prepared immediately The original copy is given to the remitter and the duplicate remains in the receipt book The deposits indicated in the Treasurer s Receipt Book should be recorded in the journal at least once a week Bookkeeping 4 6 How is a Treasurer s Receipt recorded e A Treasurer s Receipt is prepared immediately upon receipt of all monies by the School Treasurer All receipts must be completed showing the current date cash amount check amount account to receive credit the name of the person making the deposit Teacher s Receipt numbers or Payor List and the School Treasurer s signature e All receipts must be completed in duplicate The original receipt is issued to the person from whom the funds were received and the duplicate is kept intact in the receipt book e All receipts must be issued in numerical sequence e When it is necessary to void a receipt the word VO
173. sonnel of the Chicago Public Schools and individuals organizations or firms with whom the schools have business dealings 4 Expenditures for the direct benefit of staff that are not taken from funds collected by staff for staff purposes or expenditures that do not directly benefit the students Violating any item on the Prohibited Expenditures List is an audit exception Depending upon the materiality of any exception s disciplinary action may occur Purchasing 3 10 BE Contracts With the principal s approval the school may enter into contracts for the purchase lease or rental of equipment supplies or services valued at less than 10 000 for A PERIOD NOT TO EXCEED ONE YEAR Schools may be permitted to enter into multi year leases pursuant to Board policy Please refer to Chapter 5 Revenue Generation for specific requirements on permits and leasing The following departments can be contacted if the school has questions on contracts and leases 3 Bureau of Treasury for current approved leasing companies and procedures at 553 2790 3 Law Department for general terms and conditions at 553 1700 3 Bureau of Real Estate for leases and permits to use school property at 553 2950 3 Bureau of General Accounting for status of lease and processing payments at 553 2720 3 Department of Procurements and Contracts for approved vendors at 553 2250 Purchasing 3 11 I E Board Reports Board reports are required
174. sport officials Elementary schools may generate funding for school sport officials and athletic expenses through fundraising activities and revenue generated through athletic ticket sales Purchasing 3 13 I Step 3 Document a change in the sport official schedule If a sport official does not attend a game or if any other change in the sport officials schedule occurs the school should complete the School Sport Officials Form found in Appendix A It is important that the School Sport Officials Form be submitted to the Department of Sports Administration so that the department can track the number of games worked by each sport official accurately Please complete and submit the School Sport Officials Form within three 3 school days of the scheduled contest The Department of Sports Administration will make the appropriate changes to its sport officials database and if appropriate credit the school s sport officials account Step 4 Receive payment for playoff games The Department of Sports Administration and Facilities Management will not know the playoff schedule in advance so consequently funding for these games cannot be transferred electronically at the start of the sports season Schools involved in playoff games should pay school sport officials from their Internal Accounts Once the playoff schedule is completed the Department of Sports Administration and Facilities Management will send the schools reimbursemen
175. ssary to void a receipt VOID should be written across both the face of the original and the duplicate copies of the receipt Both copies should be left intact in the receipt book What does the teacher sponsor do with the Teacher s Receipts Book Regardless of amount all money collected must be deposited daily with the School Treasurer Please note If the deposit cannot be made to the School Treasurer on the day of collection a back up plan to store the funds safely must be established A written explanation must be prepared to the principal describing why the money was not deposited immediately The Teacher s Receipt Book or Payor List as noted above must be presented to the School Treasurer when deposits are made The teacher must receive a written receipt from the School Treasurer for each deposit Money Handling I How does the School Treasurer keep track of Teacher s Receipts The reverse side of the last duplicate receipt in the Teacher s Receipt Book lists the receipts that are being deposited with the School Treasurer and must be completed by the School Treasurer each time the receipt book is presented Receipt books must be returned to the School Treasurer after each activity and are to be re issued for each following event All receipt books must be returned to the School Treasurer at the end of the school year The School Treasurer must maintain a control sheet of the Teacher s Receipt Books Th
176. st or damaged items do not have to be replaced however purchases from this account should be restricted to instructional materials If the principal does not wish to make direct purchases the money may be remitted to the Bureau of Revenue Checks should be made payable to Chicago Public Schools with the designation Lost Instructional Materials on the face of the check and a Check Transmittal Form attached The school s Instructional Materials budget appropriation will be credited with the amount remitted and requisitions for instructional materials may be drawn against the account Scholarship Funds Scholarship funds can be established to assist students for study in an institution of higher education College scholarship funds may be established by a donation from individuals or groups other than the school s current student body e Each award should be supported by a written agreement detailing conditions of the award One copy shall be maintained at the school e All disbursements of scholarship money should be made directly by the school to the institution of higher education or directly to the student to reimburse the student for tuition paid The School Treasurer should establish a ledger account for each scholarship recipient to show the amount of the original award the disbursement to date and the remaining balance on a monthly basis Once all funds in the scholarship account have a zero balance then either add a
177. sures may be taken For more information please refer to the CPS policies Policy Regarding Financial Supervision and Policy Regarding Misuse of School Funds in Appendix F Please request a transition audit of school Internal Accounts of the outgoing administration Review any corrective actions that need to occur Focus on purchasing cash receipts disbursements monthly reconciliations payroll and assets Administration 1 11 C mamaman Fraud Any instances of fraud should be reported immediately to the Office of the Inspector General OIG at 773 534 8711 or 773 48 FRAUD Instances of fraud may include unauthorized reimbursements submitting unauthorized receipts for reimbursements theft or misappropriation of funds undocumented expenditures or any other financial improprieties The OIG handles complaints in a confidential manner G Financial Supervision What is Financial Supervision According to Board policy A school may be placed on financial supervision for violating mandates governing Internal Accounts and the maintenance of proper documentation of school account activity Please refer to Appendix F for additional information What are the facts that may be considered in determining whether a school should be placed on financial supervision e Whether the internal books of the school have been lost destroyed or are significantly in arrears e Whether funds are missing not properly accounted for or inappr
178. t Report http cps k1 2 il us AboutC PS Departments finance forms Buglary Theft Property Destruction Report xls Appendix E Assets and Equipment E 5 ee Appendix F Policies and Procedures e Policy Regarding Financial Supervision e Policy on Educational Crisis e Amend Resolution 86 0625 RS1 Resolution Concerning Misappropriated or Misused School Funds e Imposition of Charges on Returned Payment Instruments e Investment Policy e Debt Management Policy e Student Travel e Reimbursement for Work Related Expenses e Purchasing Board Report Procedures e Code of Ethics e Maintenance and Disposal of Assets e Guidelines for Establishing Elementary and High School Student Fees e Policy Regarding Waiver of School Fees e Acceptance of All Grants Gifts and Donations e Policy on Local School Council Fundraising e Retention and Management of Business Records e Guidelines for Maintenance of Student Records e Parent and Student Rights of Access to and Confidentiality of Student Records e Compliance with Freedom of Information Act Requests e State Chapter 1 Expenditure Guidelines Appendix F Policies and Procedures F 1 a Policy Regarding Financial Supervision http policy cps k12 il us documents 401 10 pdf Appendix F Policies and Procedures F 2 ON Policy on Educational Crisis http policy cps k12 il us documents 302 1 pdf Appendix F Policies and Procedures F 3 ee Amend Resolution 86
179. t a minimum weekly deposits are required e Good receipting provides an audit trail and the necessary information to document all money that enters the school Money Handling 2 1 ee A Money Handling Procedures Collect money Every time money is collected the Treasurer s Receipt must indicate e Source of funds Who How i e received from e Amount of collection What e Reason for collection Why e Date of collection When e General Ledger Sub Account Where i e to be credited to e Teacher s Receipt Number All Treasurers Receipts must be posted to the Cash Receipts Journal immediately Not properly receipting the collection of money whether cash or check is an audit exception How often should money be deposited with the School Treasurer All money collected from students should be counted and deposited with the School Treasurer daily A Treasurer s Receipt shall be prepared immediately A back up plan should be established if a teacher collecting money is unable to transfer the money to the School Treasurer each day Staff should not take money home with them and should not leave money in a place that is not secure wie Within the back up plan the assistant principal may be an appropriate substitute for the School Treasurer Ss Money Handling I Prepare receipts How can money be receipted Individuals other than the School Treasurer often collect funds from students for var
180. t current information in one easy to use reference document Additionally we have changed the name of the internal accounts manual to reflect the expanded information it contains The Office of School Financial Services would like to thank all schools for their continued support in the completion of the annual Internal Accounts survey and fixed asset registers collection project Each year school participation and data accuracy increases The survey is important as current governmental accounting rules require CPS to disclose the status of all accounts in the Comprehensive Annual Financial Report CAFR Additionally this data is used as the basis for many key financial initiatives which help to reduce administrative costs As we continue to make progress in these areas School Financial Services also will focus on the following areas Kronos upgrades and training Accounts Payable enhancements and M Y 0 B training A new web page design will make all financial policies and forms accessible on CPS website The Office of School Financial Services continues to research software and process upgrades to streamline schools and Central Office units business functions These system wide enhancements not only result in cost savings and better financial reporting but also in moving the school district toward a paperless work place In summary the Office of School Financial Services wants to assist schools with becoming savvy financial and
181. t for that day Multiple envelopes can be put into a single armored car pickup bag as long as another deposit ticket is prepared summarizing the days of sale and amounts of the envelopes placed in that armored car bag 5 When rubber bands are utilized bundled currency and coins must be place in an armored car bag along with a complete deposit slip for that day of sale 6 The armored car bags may provide a compartment for the deposit slip If so please place the deposit slip in that compartment 7 Identify any armored car bags envelopes and deposit slips with the school name unit number and sale date 8 Personal checks from students faculty parents or other Board employees may not be accepted as payment for lunches Checks drawn on the school s internal accounts may be used for school sponsored lunches but this is not encouraged Money Handling 2 10 I Change Orders Schools may obtain change both coin and currency to use in their lunchroom operation Change orders usually must be placed by submitting a written request on a form The form can be obtained from the armored car company Change order requests will be picked up and change orders deliveries will be made on regularly scheduled armored car pickup days Schools pay for the change orders at the time of delivery on a Cash On Delivery COD basis The Board will pay the cost of delivering the change Contact the Bureau of Food Services at 773 553 2830 w
182. t for the playoff games Step 5 Reconcile the school s sports official account All school sport officials accounts must be reconciled at the end of each school year The Department of Sports Administration and Facilities Management will notify schools of the reconciliation process by the end of the school year All questions regarding school sport officials should be referred to the Department of Sports Administration and Facilities Management The school sports officials payment process allows for the deduction of proper payroll taxes deductions If a school sport official is a non Board employee and earns over a certain dollar amount then the Bureau of Accounts Payable will give this person a Form 1099 to file with the Internal Revenue Service If a school sport official is a Board employee then the Bureau of Payroll Services will adjust the employee s earned income to reflect these earnings Purchasing 3 14 Reimbursement and Advances from School Budget Line Received funds via EDI Prepare necessary reconciliation Request funds This section describes specific requirements for the most common reimbursements from a school budget line A separate sub account should be established for each funding source and purpose These sub accounts may include state funds for field trips and transportation and teacher s instructional supplies These sub accounts must be separate accounts to make
183. t of money deposited in the bank e All money collected and deposited in the bank must be recorded in the Cash Receipt Journal Contact the Bureau of Treasury regarding armored can pick up service Please note that the armored car service does not deliver a bank deposit slip Money Handling Lunch Room receipt deposits The Board has contracted with an armored car company to pickup lunchroom receipts Elementary schools generally will have one scheduled pickup day each week school is in operation and high schools will have three scheduled pickup days each week school is in operation Certain schools will have one monthly pickup on an on call basis Cash Handling The Board will provide bags and deposit slips They may be obtained through either the armored car company or the Bureau of Food Services Contact the Bureau of Food Services at 773 553 2830 for information on obtaining bags or deposit slips Schools are required to prepare their coin and currency as follows 1 Coin and currency must be tracked by each day of sale A deposit slip indicating cash receipts including both coin and currency for each day of sale must be prepared 2 Currency should be banded or bundled together with all bills facing the same direction 3 Currency must be banded or bundled in an envelope or with a rubber band Do not tape paper clip or staple currency together 4 Envelopes may be used to separate each day of sale with a deposit ticke
184. tCPS Departments finance forms CPS Chart_of Accounts xls Appendix A Internal Accounts A 2 ee Trial Balance Sample http cps k12 il us AboutCPS Departments finance forms Trial Balance Sample xls Appendix A Internal Accounts A 3 L aaa School Sport Officials Form http cps k12 il us AboutCPS Departments finance forms School_ Sport Officials Form xls Appendix A Internal Accounts A 4 L aaaea Petty Cash Reconciliation http cps k12 il us AboutCPS Departments finance forms Petty Cash reconciliation school form xls Appendix A Internal Accounts A 5 ee Student Fee Waiver Form http cps k12 il us AboutCPS Departments finance forms Student_ Fee Waiver Form xls Appendix A Internal Accounts A 6 OO Tax Identification and Exemption Letter http Awww cps k12 il us AboutCPS Departments finance forms Tax_Exempt paf Appendix A Internal Accounts A 7 ee Appendix B Cash Receipts Revenue e Treasurer s Receipt e Teachers Receipt e Payor List e School Usage Permit e Concession Sales Accounting Report e Ticket Accounting Report e Perpetual Inventory Card Report e Check Transmittal Form e Grants Gift and Donations Access Request Form e Receipt Memorandum Appendix B Cash Receipts Revenue B 1 ee Treasurer s Receipt http cps k12 il us AboutCPS Departments finance forms Treasurers Receipt xls Appendix B Cash Receipts Revenue B 2 ee INSTRUCTIONS FOR PRE
185. tep 3 In ID field enter the Treasurer s Receipt number Step 4 Enter the date of deposit and amount from the Treasurer s Receipt Step 5 Enter the name of the person making the deposit If the person making the deposit is new create a card The system will try to find the person in the list Select from List See Creating a Card Step 6 In the Payor field use the scroll bar to select the person by highlighting the person and click on Use Card Step 7 In the Memo field indicate the purpose of the collection and press TAB Step 8 In the Allocation Account field press TAB to see list of available accounts or type in the desired account number if known Select the appropriate account to deposit funds If the account does not exist click on New and see Creating a New General Ledger Account Steps 6 9 Bookkeeping 4 20 ee Step 9 Review the entry ensuring all information is correct and the deposit is made to Cash on Hand Step 10 Record the deposit by clicking on Record If additional deposits should be recorded repeat the preceding steps Make the deposit into cash on hand Enter the date of the deposit Enter the name of the person making the deposit In Memo field indicate the purpose of the collection press TAB In the Allocation Account field press TAB this will give a list of available accounts or type in the desired account number if known Record deposit by clicking on Record ssh on Ha
186. than one year must be recorded For example movable or fixed furniture an instrument copiers video equipment computers or any article costing 500 or more must be included Please refer to Appendix F for the CPS policy on the Maintenance and Disposal of Assets Bookkeeping 4 8 The fixed asset inventory can be maintained using either the School Equipment and Furniture Register or a spreadsheet with the following information included e Tag number e Date purchased e Item description e Funding source s e Purchase Order number e Item condition e Serial number e Cost e Model or style e Location in school e Make or vendor e Donated From What should be recorded in the Internal Accounts records Internal Accounts money is all money in the checking account that did not come from school s appropriated budget Assets equipment purchased with Internal Account monies or received as a donation must be recorded in the school s ledger for the amount of purchase or the fair value of the assets donated The amount recorded should be e Total purchase price paid from school Internal Accounts money or e The portion of the total purchase price paid by school Internal Accounts money if a combination of sources is used Only the amount funded through student money is recorded in the ledger or e The estimated fair market value of the donated item When writing a check transactions posted to M Y 0 B should be as follows Debit
187. tion with suggestions from colleagues and experienced managers If you have a better way or more creative approach from which other schools can benefit please inform us Any recommendations for revising or amending this manual can be submitted to the Bureau of General Accounting This manual is reviewed periodically to ensure that it is as up to date and as informative as possible We value your comments and encourage you to contact us at Bureau of General Accounting 125 South Clark Street 14 Floor Mail Run 125 773 553 2740 Introduction vi Administration A Roles and Responsibilities The Board of Education of the City of Chicago CBOE The Chicago Board of Education s mission is to ensure that the Chicago Public Schools educates the city children to their fullest potential as individuals so that they may be productive members of society The Board sets broad policy to ensure that schools are properly managed and that sufficient financial controls are in place For this reason the Board must approve all biddable purchases in amounts above 10 000 and above and professional service contracts in amounts greater than 75 000 The Chief Purchasing Officer must approve professional service contracts in amounts between 25 001 and 75 000 The Chief Financial Officer must approve the acceptance of all gifts and grants made to the schools Principal The school principal is directly responsible for the conduct of all school financia
188. to an investment account Make a journal entry to allocate these funds to specific activity accounts by making the following entry Debit 1 13XX Specific Investment Account X XXX Credit 2 13XX Specific Investment Income Account X XXX Money Handling 2 17 I D Loans and Accommodations from School Internal Accounts e School funds may not be used for loans credits or personal use by employees of the Chicago Public Schools or any other persons e Loans for lunches carfare and similar items may be made to pupils at the discretion of the principal e Chicago Public Schools employees and other persons may not make personal purchases through the school Internal Accounts to take advantage of purchasing price or state and federal tax exemption privileges Please refer to Appendix A for a copy of the CPS Tax Identification and Exemption Letter e Accommodation checks may not be issued for personal transactions e Personal checks postdated checks or employee payroll checks may not be cashed as an accommodation for anyone Money Handling 2 18 I E Checklist and Chapter Review a Teacher Receipt Books or Payor Lists must be used by teachers for collecting funds from students a Treasurer s Receipts must be prepared for all cash and check receipts and used in numbered sequence within the book a Money must be submitted to the School Treasurer on a daily basis Any delays should be explained on the face
189. tomatic E mail is sent to the requester Finance and External Resources when OMB enters the lines have been budgeted The receiving unit then reviews their budget lines that have been loaded and begins implementation For complete instructions on how to enter information into Oracle please refer to the website link for Grants Gifts and Donation User Document at http Awww cps k12 il us AboutCPS Departments finance Grants Gifts Donations User Document pdf Fiscal Responsibility Governmental grants are administered through the Central Office The grant administrator is responsible for ensuring all activities and encumbrances are completed by the end date of the grant Delivery of goods and services must occur before the end date of the grant Payment for all goods and services encumbered for the grant must be paid within the timeframe established by the funding agency The acceptance of a grant gift or donation does not supersede any federal state local or CPS policies and regulations during the implementation of the grant Fund 280 The procedures for the loading of Fund 280 Legacy 124 Oracle Special Income Funds has not changed For a complete description procedures for use of the funds and forms please see the website link http cps k12 il us AboutCPS Departments management Fund 280 pdf Revenue Generation 5 16 ee Single Fundraising Activities The purpose of school fundraising is to generate non budgeted funds fo
190. tracking reimbursements and expenses according to each activity easier Schools should remember to spend their Supplemental General State Aid funds Oracle fund 225 Please note ANY unspent money goes back to the budget line The online system for receiving reimbursements and advances for expenses from the school budget is PAYOUT If applicable LSC and Board approval of the expenditures should be obtained prior to requesting these funds This system allows the school access to their school budget line When a school submits a request using the system the funds are deducted from the budget line PAYOUT has lower dollar limits but allows the school faster access to cash advances and reimbursements Schools should retain the purchase orders invoices and receipts Reimbursements for expenses can only be made to the school or a CPS employee who has spent personal finances for CPS expenditures Vendors cannot be paid through PAYOUT School cash advances can be made payable only to the school Please refer to the PAYOUT manual for specific limits and procedures Checks made payable to the school are deposited into the school s Internal Accounts The school s checking account is used to pay the vendor or reimburse employees Purchasing 3 15 I Consultants and personal services providers paid from the school s budget line should be issued purchase orders directly through the online iProcurement system not through school Internal Ac
191. ts for the work How often is maintenance performed on the vending machines The Board approved vendor should provide the following routes sales delivery call ratio for the schools e Elementary Middle Schools 1 time per week minimum may be adjusted as needed e High Schools 1 time per day 5 days a week Revenue Generation 5 29 re What should schools expect during a vending machine delivery call During service calls the vendor will provide the following maintenance e Update all brand labels decals e Check acceptance of coin mechanisms e Check acceptance of dollar bill validator e Ensure vendor is cooling vendor s products to 36 degrees e Clean refrigerator condenser e Clean surrounding area of any debris resulting from the service delivery call Remember drivers MUST sign in every time vending machines are serviced How quickly should schools expect to receive vending machine assistance when problems occur Every call for service made by a school should be responded to within 24 hours Monday through Friday This timeframe excludes weekends holidays school vacations school closings and other occasions when the building is not accessible Additionally the vendor will monitor all machines and keep a log on the number of service calls per vending machine On a monthly basis the vendor will provide the Board with a summary of all service calls detailing e Vending machine location e When calls were placed by the sc
192. tudent listing Best used when amount collected is small or standard To document all money collected or received by the school These receipts are the primary form of control over school funds To track the number of individuals attending an event To track the amount of receipts and the amount of goods sold To report the collections using tickets and explain any differences Receipt books can be purchased through the Purchasing system from any authorized Board vendor Please see Appendix B for a copy of a Payor List Receipt books can be purchased through the Purchasing system from any authorized Board vendor Pre numbered tickets books can be purchased from any office supply store Please see Appendix B for a copy of the Concessions Sales Report Photocopy the report for repeated use Please see Appendix B for a copy of the Ticket Accounting Report Photocopy the report for repeated use Some schools have established Student Service Centers At these centers students can pay all fees and purchase certain items and tickets A cash register or receipt book at this center can minimize teacher and sponsor involvement with cash and bookkeeping Good record keeping procedures must be established and followed to track all income These centers should have A central location A posted list of hours of operation A complete set of forms and receipts Accountability for all money collected A reconciliation o
193. unt and a money market account with check writing privileges Certificates of Deposit School funds may be invested in certificates of deposit CD of any federally approved bank or savings and loan provided that the amount invested is not in excess of the maximum amount insured by the FDIC 100 000 ACD is special type of time deposit A CD is an investment instrument available at financial institutions generally offering a fixed rate of return for a specified period such as three months six months one year or longer The depositor agrees not to withdraw funds for the time period of the CD If the funds are withdrawn a significant penalty is charged The fixed rate of return normally increases with the length of the term of the investment U S Treasury Obligations Treasury bills and notes are alternatives to investment vehicles with various maturity rates ranging from 3 months to 5 years What if school funds exceed the FDIC insured limit of 100 000 Municipal Code requirements state that City funds which include those funds associated with the Chicago Public Schools must be collateralized at 110 of the account balance FDIC insurance covers up to 100 000 which would allow schools to maintain accounts up to 90 909 100 000 110 Any amounts that exceed this level would need to be covered by additional collateral Notify your bank of the requirement to set up the collateral The bank should provide records to indicate t
194. ur Region Business Manager Concession Sales Concession sales or a continuous sale of goods do not require a receipt for each sale however the sponsor must record all collections By tracking how much inventory or goods are sold the school can determine if the cash received matches the amount of inventory sold Sales activity is documented by comparing expected sales to actual sales The school can use a Concession Sales Accounting Report to do analysis The sponsor must complete these for each sales activity The money collected from these sales must be given to the School Treasurer and a Treasurer s Receipt must be prepared immediately Please refer to Chapter 5 for further information Ticket Events To ensure that all money collected is deposited with the School Treasurer the school must use pre numbered tickets and maintain a record of the number of tickets sold for an event This record indicates the expected amount of receipts The school can use a Ticket Accounting Report to determine whether the cash received matches the number of tickets sold The Treasurer s Receipt must be completed immediately after funds are deposited with the School Treasurer Please refer to Chapter 5 for further information Treasurer s Receipt All receipts must be prepared immediately after the Treasurer receives any money e Receipts must be completed in numerical order The original receipt is given to the person depositing money and the dupli
195. val conduct the fundraising activity An organization is fully accountable for the funds generated the expenses incurred and if it applies the delivery of the agreed upon goods and services to students and faculty in a timely and acceptable manner Step 3 The outside organization submits a completed Local School Fundraising Accounting Report This report should be submitted to the School and the Office of School Instruction Management no later than ten school days after the last date of the fundraising activity 4 Local School Council Fundraising Local School Councils LSCs may conduct fundraising activities for legitimate educational activities that benefit the students of the school the LSC serves or for the LSC s incidental operating expenses All financial activities related to LSC fundraising must be recorded in the school s Internal Accounts a Fundraising for Educational Activities e The LSC can raise funds to purchase uniforms band uniforms band equipment and for other educational purposes for students e All fundraising activities that are ongoing in nature such as vending machines and school supplies cannot be administered by the LSC Revenue Generation 5 23 b Fundraising for Operating Expenses e The value of the fundraising profits generated for LSC operating expenses shall not exceed a cumulative total of 1 500 per school fiscal year if the school population is under 1 000 students nor shall it ex
196. vataretbrararersrararersrerererecettEtaTaTaTanarananenavsvgta ETE TETETETETETETETararavavengceceeeCCECMEMMEMESvanzra gg tEEEETEIETETETETETETErSTETETETERE EEE TaNENENENE EG RRRRRAAAARKRKAAARARAAARKKKAAAAAARRAKKAKAARAA KAA KAARAAAARKKAAKARARAAKRKKKAAAAAARRAKKK KARA RA RAEKAARAA RAR KKARARAAK KKK HH location Account Amount Job In the Amount box type the exact amount of the payment Select the account for payment by clicking the first box of Allocation Account and typing the account number If you do not know the account number press TAB This gives a listing of all available accounts Select the appropriate account by clicking it highlighting it and clicking Use Account Bookkeeping 4 24 ee Step 9 Step 10 Step 11 Step 12 Step 13 The amount as entered on the Check in Step 7 should automatically show in the amount column ADVANCED If multiple accounts will be used to fund the payment type the amount to be used from the first account and proceed to type the account and amount for the other accounts Record the payment by clicking on OK Complete additional payments When all payments have been recorded the checks can be printed if the check writing feature is used Click on Save when all checks have been recorded Bookkeeping 4 25 5 Transfer money between Internal Accounts Step 1 Select General Journal Entry in the Command Center Command Center Steve Bock School Select General Journal Entry
197. ve 60 000 School X would provide School Financial Services all money and student disbursement information School Financial Services will work with the Office of Management and Budget to ensure the money is allocated correctly Prior to a school closing all Internal Account information must be balanced and verified The online Internal Accounts assessment must be completed in full and supporting documents bank statements and reconciliation reports must be sent to the Office of School Financial Services Please contact the Internal Accounts hotline at 553 4271 IAS1 or E mail InternalAccounts cps k12 il us for further information or assistance In compliance with Board Policy closing schools must complete the Asset Transfer Disposal Form http www cps k12 il us AboutCPS Departments finance forms Asset_Disposal_ Tran sfer Form xls when relocating any items valued at 500 or more from the closing school to another location Items valued at 500 or more that will remain within the building must be documented on the Asset Register http www cps k12 il us AboutCPS Departments finance forms Asset Register xls and submitted at the end of the fiscal year In addition to completing the asset information and Internal Accounts requirements lunchroom seed money should be returned to the General Accounting Department at the end of the fiscal year Administration 1 10 ee F Audits and Investigations What is a school internal audit A
198. vity agreement All Chicago Public Schools requesting a vending machine must use the approved Board vendor s products only No school should have any beverage vending machine from any provider other than the approved Board supplier Revenue Generation 5 27 ee Board Policy when outside parties such as PTAs etc use CPS facilities When outside parties use school facilities for various activities these groups cannot sell beverages that compete with the Board approved vending machine supplier However any beverage brand may be brought into a facility for personal use Machines accessibility Timers on all elementary and middle school student access vending machines must be on each machine In accordance with all applicable State and Federal Guidelines these timers must be set to turn on upon the conclusion of classes Vending machines located in all high schools or teacher s lounges non student areas will be left on 24 hours a day Machines placement Vending machines must be placed at least thirty 80 feet from any school cafeteria or sporting venue If this is not practical the vending machine supplier the Board of Education and the principal will determine the best placement of the equipment Principals must submit a written request for exemption to the CPS Food Services Bureau explaining the reason for exemption from this regulation Number of machines at schools The principal will determine the number of vending machi
199. w If the Checking Account is not indicated click on the window and hold down the mouse button and select Checking Account The checking account is the only account from which disbursements are made If the school uses computer generated checks make sure the Handwritten box is NOT checked If the school handwrites checks the box should be checked The payee can be indicated by using the card feature Please refer to Creating Cards in Section 9 or by entering the payee directly into the payee window If the cards are set up type a few letters of the payee s name or company name until the payee s name appears M Y 0 B Accounting Command Center a File Edit Command Centers Setup Reports Window Help Steve Bock School 6 24 96 Reconcile Make Accounts one ES Deposit To Do Lis Cas Flow Transaction Journal Bookkeeping 4 23 If the Checking Account is not indicated click on the window hold down the mouse button If the school uses computer generated checks make sure he Handwritten box is NOT checked If the school writes manual checks the box should be checked The payee can be indicated by using the card feature see Creating Cards or by entering the payee directly into he payee window Type in the exact amount of the disbursement Indicate the Account number If you don t know the Account number press TAB Insert the Requisition Number in the Memo Field

Insider`s Guide to School Business and Internal

Contents

Download Pdf Manuals

Related Search

Related Contents