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CKA- Cash Disbursements

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Approval Date: December 8, 2020

CKA- Cash Disbursements

Definitions

"Public funds" means money, funds, and accounts, regardless of the source from which the money, funds, and accounts are derived, that are owned, held, or administered by the state or any of its boards, commissions, institutions, departments, divisions, agencies, bureaus, laboratories, or other similar instrumentalities, or any county, city, school district, political subdivision, or other public body. 51-7-3 Utah Code Definitions .

Policy

  • All checks or check stock, credit/purchase cards, access to bank accounts and statements,etc., shall be secured and controlled by the district accounting office or school front office with limited access
  • All disbursement of funds in the District must be done through the district accounting office or school front office
  • Expenditure transactions must be approved by an individual having sufficient knowledge and authority to evaluate the transaction for reasonableness and appropriateness
  • The District or school shall designate employees by title or job description who are authorized to approve various dollar amount levels of disbursements and instructed never to sign blank checks.
    All expenditures made using cash, checks, credit/purchase cards, electronic fund transfers, etc. shall be recorded in the school or district accounting records Passwords shall be established on user access to the accounting system and changed periodically
  • Checks shall be made payable to specified payees and never to "cash" or "bearer"
  • All disbursement activity shall be substantiated by supporting documents that are available and demonstrate that proper disbursement controls are in place (signatures for approval, purchase orders, receipts, invoices, bids or quotes, reimbursement forms, travel forms, journal entries, reconciliations, etc.)
  • The district's tax-exempt status number shall only be used in conformity with the Utah State Tax Commission's guidelines
  • If an outside entity reimburses employee expenses (meals, travel, etc.), these expenses should not be submitted to the district for reimbursement
  • No disbursing of funds is to be done in other offices or at unapproved off-site activities or functions
  • Any purchases should be equitable for both male and female students and comply with
  • Title IX

Credit/Purchase Cards

  • The district accounting office or school front office shall keep credit/purchase cards and their PIN numbers secure and controlled with limited access
  • Card users shall follow district and state purchasing policies and comply with the Utah State Tax Commission's guidelines regarding the district's tax-exempt status number
  • Prior to making purchases exceeding $1,000 with a credit or purchase card, pre-approval from the Business Administrator must be received
  • Cards issued to the District as a whole, shall have a log kept, documenting which employee checked out the card and the period of time the card was checked out
  • Receipts shall be retained for all purchases and turned into the district accounting office or school front office
  • Card reconciliations should be performed monthly to ensure all receipts are present and all purchases have been made in accordance with district and state policy
  • Employees who have been assigned a specific card shall retain all receipts for purchases made with public funds
  • Card users shall review and reconcile the card statement activity each month and attach all receipts to the card statement
  • Card users shall sign their card statement certifying that all purchases have been made in accordance with district and state policy
  • Administration or designee must review and approve each card user's statement, along with all receipts and other documentation
    • An employee with oversight over the card user(s) is responsible for providing authorization
  • Individual expenditures made on purchase or credit cards shall be recorded in the school or district's accounting records according to the approved district chart of accounts
  • The issuance of a check or an electronic funds transfer to pay the monthly card statement balance shall be documented and approved by administration prior to issuance
  • ATM transactions, cash advances, or personal use are strictly prohibited
  • Violation of purchase card policy, including not retaining documentation of purchases or making personal purchases, may result in card cancellation, disciplinary action, or criminal prosecution
  • Transaction, daily, or monthly limits shall be established based on purchasing authority
  • Administration or employees designated by the district will develop an internal review plan to periodically select credit/purchase card statements to verify that district policies and procedures are being followed, and that purchases are appropriate, documented, and coded to the proper funding sources

Purchase Orders

  • Expenditure authorization forms (purchase order or expense voucher) are required for all purchases
  • Employees initiating expenditures shall complete an authorization form, including documentation of any required quotes, before a purchase is initiated
  • Completed forms and documentation shall be submitted to the immediate supervisor or designated business officer for the department
  • The designated business officer for the department will review completed expenditure authorization forms and any supporting quotes and approve the purchase
  • This approval signature is required prior to the initiation of a purchase
  • Shipment of goods should be addressed and delivered to the school front office or district office
  • Invoices and complete packing slips should be initialed by the receiver of the goods, indicating that all goods were received and that payment should be processed
  • The district accounting office or school front office shall compare invoices and packing slips to the expenditure authorization form prior to processing payment (see District Issuance of Checks).

District Issuance of Checks

  • All checks, check stock, access to bank accounts, and bank statements shall be kept secured and controlled by the district accounting office or school front office with limited access
  • Passwords shall be kept secured and changed periodically
  • An employee who does not have the ability to issue checks shall review the issued check and accompanying supporting documentation to ensure all policies and procedures are followed
  • Each disbursement shall be substantiated with supporting documentation, such as purchase orders, invoices, receipts, quotes (as required by the procurement policy), reimbursement forms, shipping documents, contracts, travel forms, etc.
  • All expenditures shall be recorded in the district's accounting records using the district chart of accounts, or under the district's roll-up process to convert to the district chart of accounts
  • Signature stamps shall not be utilized, and blank checks or checks made payable to "cash" or "bearer" shall never be signed
  • A check that must be voided, shall have the word "VOID" written on the check, and the actual check shall be retained.
  • If the district is unable to obtain the physical check, stop payment shall be placed on the check

Journal Entries/Electronic Fund Transfers

  • Electronic fund transfers and journal entries shall be kept secured and controlled by the district accounting office or school front office with limited access
  • Passwords should be kept secured and changed periodically
  • Journal entries or electronic fund transfers shall be substantiated by supporting documentation
  • Journal entries or electronic fund transfers shall be recorded in the district's accounting records
  • Administration or an individual without cash disbursement duties shall document approval of journal entries or electronic fund transfers
  • Monthly, the board shall review and approve the journal entries and electronic fund transfers

Review process

  • Bank reconciliation(s) shall be performed monthly on all district-approved accounts, including credit card transactions
  • If the bank reconciliation is completed by someone who has access to the accounting system and the bank accounts, it should be reviewed and approved by another person, such as the building administrator, director, Business Administrator, a member of the audit committee, or the Board
  • Monthly, administration shall review bank statements and bank reconciliations, as well as credit card statements, and document the review and approval
  • The district audit committee shall ensure that monthly bank reconciliations and credit/purchase card statement reconciliations are occurring
  • Check registers shall be reviewed when signing checks to ensure all disbursements are reviewed and approved
  • Periodically, administration or designated members of management shall review cash disbursements to verify that all district and state policies and procedures are being followed