HomeMy WebLinkAboutPR 616 FIN - Accounting For School-Generated Funds1 PR.616.FIN
PROCEDURE PR.616.FIN
TITLE: ACCOUNTING FOR SCHOOL GENERATED FUNDS
Date issued: 20 June 2000
Last revised: 27 April 2021
Authorization: Senior Staff: 27 April 2021
1.0 OBJECTIVE
To provide specific administrative guidelines applicable when accounting for school
generated funds.
2.0 DEFINITIONS
In this procedure,
2.1 School generated funds mean monies collected by the school, including from/by
students and school staff, and relating to activities such as:
a)sale of goods (milk, fruit, school clothing, etc.);
b)walk-a-thons, swim-a-thons, read-a-thons, etc.;
c)dramatic performances, band concerts, dances, etc.;
d)athletic fees;
e)collections from parents/students for field trips, books, etc.;
f)vending machine sales;
g)proceeds/commissions from cafeteria operations;
h)mirror netting interest (received from the Board);
i)HST rebates (filed by the school, once received from the Board); j)
student fees;
k)school picture rebates; and
l)donations received from the school council or any other organization.
School generated funds do not include monies collected for staff funds or coffee
funds.
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3.0 RESPONSIBILITY
3.1 The principal is responsible for:
a)managing school generated funds raised by the school or
administered by the school on behalf of its school council ;
b)ensuring that effective accounting procedures, practices, and internal
controls have been implemented in accordance with the
OCDSB manual entitled School Generated Funds Accounting Procedures
Handbook; and
c)submitting a year-end report by the third Friday of September of
each year for the previous period (i.e., 1 August to 31 July). The
report must comply with all Handbook requirements, be approved
and signed by the principal, and be sent to the attention of the Chief
Financial Officer or delegate.
4.0 PROCEDURES
4.1 School generated funds may be raised through fundraising activities in
accordance with Board Policy P.052.SCO: Fund-Raising in Schools and Board
Procedure PR.540.SCO: Fund-Raising in Schools.
4.2 Money collected may be in the form of cash, cheque, credit card payment, and
bank transfer. The funds may be collected using traditional methods that require
physical deposits to be made to the bank account established for administering
school generated funds or money may be colle cted using approved software
that facilitates deposits directly to the bank account. The use of approved
software is the preferred method of payment.
4.3 The use of school generated funds depends on the source of the funds:
a)where the source of funds is from student-related activities (student
fees, fundraising activities, etc.); the funds will be used directly for the
students (yearbook supplies, dances, student trips, etc.); and
b)where the source of funds is from vending machine proceeds,
cafeteria gross sales proceeds, mirror netting interest, and HST
rebates; the funds will be used for school -related student-focused
activities, at the discretion of the principal.
4.4 The District must comply with Canada Revenue Agency’s requirement to report
annually the total payments to an individual or company who is not an HST
registrant. Reporting is accomplished using a T4 or T4A tax information slip and
3 PR.616.FIN
is based on information shown in the District’s corporate financial system.
Accordingly, the following transactions must be processed by the Finance
department:
a)timesheets for work performed by staff members must be submitted to
the Payroll division; and
b)cheque requisitions for individuals who have performed casual work or
who are being provided with an honoraria in recognition of their
contribution (speeches, presentations, etc.) and invoices received from
companies that do no not provide an HST registration number are to be
submitted to the Accounting division.
The transactions will be charged to the school’s Board -allocated budget. Where
appropriate, the costs incurred in this manner may be offset by transferring
funds from the school generated funds to the Board -allocated budget.
4.5 The school generated accounts of all elementary and secondary schools will be
reviewed on a periodic basis to evaluate school compliance with the
requirements outlined in the School Generated Funds Accounting Procedures
Handbook.
4.6 School generated accounts will be consolidated wit h financial information
presented in the consolidated financial statements. The school generated
accounts are subject to those audit procedures deemed necessary by the
external auditor, internal auditor and Finance department staff.
5.0 REFERENCE DOCUM ENTS
Education Act Regulation 298, s. 25
OCDSB School Generated Funds Accounting Procedures Handbook
OCDSB School Council Funds Management Guide
Board Policy P.014.SCO: School Councils
Board Policy P.045.GOV: Partnerships, Sponsorships, Donations and Co-operative
Ventures
Board Policy P.052.SCO: Fund-Raising in Schools
Board Policy P.133.FIN: Management of School Council Funds
Board Procedure PR.535.GOV: Partnerships, Sponsorships, Donations and
Cooperative Ventures
Board Procedure PR.540.SCO: Fund-Raising in Schools
Board Procedure PR.580.FIN: Management of School Council Funds