P1#yIS1

 
 
 
 
Activity Fund 
Policy and Procedure Manual 
 
Revised December 2020 
 
 
 
TABLE OF CONTENTS 
Introduction ............................................................................................................................................. 2 
Activity Account Funds (Campus) Ð Fund 461 ........................................................................................... 4 
Student Activity Account Funds (Student Organizations) Ð Fund 865 ....................................................... 6 
Hospitality/Sunshine Faculty Funds ......................................................................................................... 7 
Cash Management ................................................................................................................................... 8 
Check Processing ................................................................................................................................... 10 
Consultants or Contracted Services ........................................................................................................ 10 
Credit Cards ........................................................................................................................................... 12 
Donations and Gifts ............................................................................................................................... 12 
Fundraisers ............................................................................................................................................ 13 
Hotel Occupancy Tax Exemption Form ................................................................................................... 14 
Invoices.................................................................................................................................................. 14 
Payroll Expenditures from Activity Funds .............................................................................................. 15 
Purchase of Food and Non-Food Items .................................................................................................. 15 
Purchase Requisition and Order Forms .................................................................................................. 15 
Returned Checks .................................................................................................................................... 17 
Roles and Responsibilities ...................................................................................................................... 17 
Club Sponsor .......................................................................................................................................... 17 
Campus Secretary/Bookkeeper.............................................................................................................. 17 
Campus Principal [Ultimate responsibility for Activity Funds] ................................................................ 17 
Sales Tax Exemption Form ..................................................................................................................... 18 
Student Trips ......................................................................................................................................... 18 
Transfers between Activity Accounts ..................................................................................................... 19 
Travel Expense Ð Advances & Settlements ............................................................................................. 19 
Vendors ................................................................................................................................................. 19 
Forms and Locations .............................................................................................................................. 20 
 

 
 
  
   INTRODUCTION 
  
This Activity Account Manual has been prepared to provide general information to campus principals, activity account sponsors, and student club officers about managing activity accounts.  The procedures set forth in this Activity Account Manual provide both administrative and accounting controls to safeguard assets and ensure reliability of financial records. By adhering to these internal controls, persons responsible for Activity Funds can help prevent the misappropriation of funds, violations of federal, state and local regulations, and acts of fraud or negligence. Additional information may be available within the districtÕs Board Policies, Finance Manual, Cash Management Procedures or other updates from the Finance Department.   
Board Policy  
The district has two board policies that specifically address financial management and financial ethics:   
Board Policy CAA Local states: All Trustees, employees, vendors, contractors, agents, consultants, volunteers, and any other parties who are involved in the DistrictÕs financial transactions shall act with integrity and diligence in duties involving the DistrictÕs fiscal resources. The District prohibits fraud and financial impropriety, as defined in Policy CAA Local, in the actions of its employees. 
Board Policy DH Exhibit [EducatorÕs Code of Ethics] states: An educator shall not intentionally, knowingly, or recklessly misappropriate, divert, or use monies, personnel, property, or equipment committed to his or her charge for personal gain or advantage. 
Another board policy, CFD Local, was adopted by the district in response to HB 3646, 81st Regular Legislative session, that requires school districts to adopt a policy governing the expenditure of local funds from vending machines, rentals, gate receipts, or other local sources of revenue over which the district has direct control. Funds generated from such sources shall be expended for the benefit of the District or its students and shall be related to the DistrictÕs educational purpose. 
Accounting Standards (GASB & FASRG) 
The GASB released GASB Statement No. 84, Fiduciary Activities. It establishes guidelines for identifying fiduciary activities and determining if these activities should be reported in the governmental funds financial statements (C1/C2) as a ÒcustodialÓ fund.  Key to the changes is that the separation of district control and student control of activities should be strengthened to incorporate the following when determining how to classify activity funds: 
¥ A student group (865) should have bona fide officers. If there are no student officers, then the fund is likely a campus activity (461). 

¥ Local district policy should state that the student activities and the funds raised are for the benefit of the students. 


The original implementation date was reporting periods after 12/15/2018. However, GASB 95 Postponement of Effective Dates (May 8, 2020) extended implementation by 18 months due to the COVID-19 pandemic. The new effective date for the district is FY 2020-2021, or September 1, 2020.  
Student Activity fund rules related to purchasing, sales tax exemption, and budgeting remain as they did before the release of GASB Statement No. 84. Campus Activity funds (fund 461) will continue to follow all state and federal statutes for special revenue funds.  
The Financial Accountability System Resource Guide (FASRG) has been used as a resource to compile this Activity Account Manual. 
If assistance is needed in any area of our business operations, please contact any of the staff members listed below. 
 Finance Department Staff 
 Stacey Adrian  Chief Financial Officer  Extension 1152 
 Leon Fisher  Executive Director of Finance Extension 1168 
 Nadia Powers  Director of Purchasing  Extension 1119 
 Cindy Hankey  Accounting Coordinator  Extension 1111 
  
District-Managed Types of Activity Funds  
Activity funds consist of resources received and held by the school/district, as trustee, to be expended in accordance with the conditions of the trust. Specifically, they are funds accumulated from the collection of fees, donations, commissions, district-approved fundraising activities.  
There are two main types of Activity Funds:  
¥ Campus Activity Funds (461) and Campus Hospitality/Faculty Funds (461-44). 

¥ Trust Funds such as Student Activity Accounts (865)  


Other Types of Funds Ð Managed by External Groups or Organizations  
External group funds such as Parent-Teacher Organizations (PTO) and Boosters are separate legal entities from the school district. These organizations must maintain separate federal tax identification numbers and bank accounts. The UIL publishes guidelines for booster clubs, as do the national umbrella organizations for parent-teacher groups.  
District personnel, including campus principals, campus secretaries, sponsors and administrative staff are not responsible for assets held by parent-teacher or booster groups. Funds derived from these organizations are external funds which cannot be commingled with Activity Funds. 
District employees should not collect money for, or perform duties for, external groups during working hours. Additionally, district employees should not handle external group financial affairs such as a treasurer position. 
In accordance with Board Policy GE Local, district-affiliated school-support organizations and booster organizations, and other parent groups, shall organize, fundraise or solicit donations, and function in a way that is consistent with the DistrictÕs philosophy and objectives, Board policies, District administrative regulations, applicable UIL or other governing association guidelines, and financial and audit regulations.  
Before engaging in fundraising or soliciting gifts, an organization or group shall notify the principal or other appropriate administrator identified in administrative regulations.  
District-affiliated school-support or booster organizations may use District facilities with prior approval of the appropriate administrator.  
 
ACTIVITY ACCOUNT FUNDS (CAMPUS) Ð FUND 461 
  
The district has made the determination that all Campus Activity Funds will be accounted for in Fund 461. This shall include the principalÕs activity account and other accounts such as the library, grade level teachers, athletics, etc. 
The district has made the determination that all Student Activity Funds will be accounted for in Fund 865. This shall include all student organizations and clubs that meet the definition of a bona fide club or chapter, i.e. have elected officers and by-laws.  
Campus Hospitality or Sunshine (Faculty Fund) accounts shall be accounted for in Fund 461. 
The expenditure of Campus and Student Activity funds shall be in accordance with district policy and procedures. The following Allowable and Non-Allowable expenditures are for illustration purposes only, this is not an all-inclusive list. A final decision regarding allowability will be made at the time of the purchase order and/or payment approval. 
Allowable     
a. Student trip related expenses such as meals, entry fees, lodging, transportation, etc. (Includes student and staff expenses) 

b. Staff or student meals or refreshments (infrequent and nominal cost) 

c. Awards/incentives (non-cash) of nominal value 

d. Club supplies 

e. Equipment, but it must be donated to the campus or district f. Rentals such as vehicles, equipment, etc. 

g. Contracted services such as printing, DJ services, motivational speaker, photographer, etc.  


Unallowable 
a. Alcohol, tobacco or other controlled substance 

b. Payments of wages to district employees 

c. Individual gifts to a specific student or staff member (exceptions may apply to student organization funds) 

d. Donations to a person or outside organization (exceptions may apply to student organization funds Ð Fund 865) 


Campus activity funds (Fund 461) are school funds managed under the direction of the campus principal. These funds shall be referred to as Òthe Campus Activity FundsÓ. There may be multiple sub-accounts within the Campus Activity Fund such as the PrincipalÕs Account, Library Account, 2nd grade teachers, etc. Sub-accounts within the Campus Activity Fund are not student club or organization funds. The funds raised within the sub-accounts shall be used to benefit that respective activity under the direction of the teacher who oversees the account, subject to the approval of the campus principal. 
 P99#yIS1

Campus activity funds (under the control of the principal) shall be collected, receipted, and deposited daily.  Refer to Cash Management Procedures. 
Campus activity funds are primarily used to benefit students.  Typical uses include field trip fees, awards, incentives, etc.   
Campus Activity Funds shall not be used for ÒgiftsÓ to students and/or staff.  General Funds and/or resources purchased with the General Fund shall not be used to generate activity funds.  Campus staff (administrative/support) shall not perform Campus Activity Fund fundraising activities during the academic day that may incur additional cost from the General Fund such as hiring of a substitute or other additional staff.  Giving of staff time to generate Campus Activity Funds shall be voluntary.  The principalÕs secretary shall be responsible for managing the deposits and expenditures, with oversight and overall responsibility of the campus principal. 
Generating activity funds shall not in any way compete with the districtÕs National School Lunch Program.  Activity funds generation shall be a passive activity and shall not detract from the districtÕs overall primary educational purpose.  The generation and expenditure of campus activity funds shall be held to the same standard and scrutiny as that of appropriated funds.  Activity funds shall be audited and must adhere to accepted business practices. 
A purchase order is required for all campus activity fund expenditures. Multiple campus activity sub-accounts may be created to segregate by purpose.  
 
STUDENT ACTIVITY ACCOUNT FUNDS (STUDENT ORGANIZATIONS) Ð FUND 865 
 
Student activity funds (Fund 865) are held in a trustee capacity by the school and they consist of funds that are the property of students or others. These funds are not campus nor district funds, but rather trust funds belonging to the students. The funds may be used in any manner to benefit the students and/or faculty at the direction of the students (with sponsor oversight) subject to the oversight and approval of the campus principal as ÒtrusteeÓ over the funds. 
All purchase requisitions from Student Activity Accounts shall include the approval of a club/class president or treasurer to ensure that all student activity account expenditures are student-directed and approved. [Additional guidance under the Purchase Requisitions and Other Forms section.] 
Student Organizations 
Student clubs and organizations shall be defined as a student-led group with formation documents, by-laws, and elected officers. All student clubs and organizations shall function under the sponsorship of a campus staff member, i.e. teacher or other staff member.  P111#yIS1

Cash and checks received on campus shall be receipted in a receipt book [bound and pre-numbered receipts] or on the Project Cash Report (PCR). 
Student activity funds shall be used exclusively for the benefit of students.  Typical uses include student travel, awards, banquets, supplies, DJ for a dance, end-of-the-year trips or events, club t-shirts, etc.  These funds shall be used at the discretion of the student organization through designation of one or more of its officers. Class/club meeting notes should be on file to support student decisions regarding the expenditure of their class/club funds and shall be attached to purchase requisitions to support the student-led purchase decisions.   
The assigned organization sponsor (professional staff member) shall be responsible for the proper management of the student activity accounts.  Annual training can be scheduled to assist the organization sponsors in managing their respective student activity account(s). All expenditures and payments to vendors shall be processed through the campus secretaryÕs office. 
Generation of student activity funds shall not in any way compete with the districtÕs National School Lunch Program (NSLP). A Fund-Raising Application form should be submitted to the campus principal for approval and then submitted to the Finance Department for approval, in advance of the scheduled activity.  In addition, at the end of the fundraising activity, the bottom portion of the Fund-Raising Application should be completed and filed with the Finance Department.  Activity funds shall be audited and must adhere to accepted business practices. 
Since Student Activity Accounts are trust funds that the campus manages on behalf of the student, accountability for these funds is extremely high.  All Activity Account records must be maintained for a period of five (5) years.  This includes merchandise logs, receipt logs/books, profit/loss statements, etc.  At the end of every school year, the Campus Principal, as part of the closeout procedures, shall collect all club records for storage on the campus for one year, then archived for the rest of the archival period. New receipt books shall be issued to staff members for each fiscal year.  
Since Student Activity Accounts are decentralized, the campus secretary/administration is responsible for reconciling the bank statements monthly.  A copy of the bank statement reconciliation shall be submitted to the Finance Department by the 15th of the following month.   
 
HOSPITALITY/SUNSHINE FACULTY FUNDS 
 
Campuses may establish a staff account (Hospitality or Sunshine) with voluntary donations from staff. The funds may be used in any manner to benefit the faculty at the direction of the Hospitality/Sunshine Committee subject to the oversight and approval of the campus principal as ÒtrusteeÓ over the funds.  
Purchases with these funds are subject to taxes as they represent personal purchases and not district purchases. Purchases typically include flowers for ill staff members, employee recognition awards, etc. These funds shall be deposited and expended from a Campus Activity Fund (Fund 461). No fundraising activities shall be allowed in a Hospitality Fund. 
Budget (Original and Increases in Appropriations) 
 On an annual basis, on or after September 1st, the district shall establish the Original Budget for Campus and Student Activity Accounts. The Original Budget shall represent the ending balances from the prior fiscal year (after all EOY accounts payables have been posted to the general ledger). Account codes shall comply with the Financial Accountability System Resource Guide (FASRG).  
As funds are received and deposited to the depository bank, the Finance Department shall post the deposits to the appropriate revenue account and increase the activity account sub-account that generated the funds.  
Every bank deposit shall be posted to the general ledger on at least a weekly basis to increase the appropriations and provide availability of the funds. 
At the end of the fiscal year, the net gain/loss of all revenues and expenditures shall be posted to the fund balance account for the Campus and Student Activity Accounts. 
 
CASH MANAGEMENT  
 All cash receipts shall be handled in accordance with the Cash Management Procedures. 
The District utilizes an Online Payment System (RevTrak) as an optional method of collecting funds for dues, fees, lost books, fundraising, ticketing, donations, etc. Use of RevTrak is strongly encouraged.  Accepting of cash or checks at the campus and department level is acceptable if proper procedures are followed. 
RevTrak, as well as Home Town Ticketing will be utilized for ticketed events sales such as athletic events, theatre events, and student events such as dances, trips, prom, etc.   
Receipting Procedures for Collection of On-site Cash or Checks 
A receipt shall be issued for all cash collections, except for minor sales from fundraisers (candy, ice cream, etc.). Generally, a receipt shall be issued for all collections from an individual that equal or exceed $5.00. A Project Cash Report (PCR) shall be generated for non-receipted cash collections and submitted with the cash deposit to the campus secretary/bookkeeper. Note: A copy of all receipts shall move with the funds from the sponsor to the principalÕs secretary. 
 
 
 
 
 
 
Sample Receipt is illustrated below: 
 P142#yIS1

 
Receipts shall be issued for all money transactions. The example below illustrates the flow of money and proper receipting when a student pays for an item. 
. Student purchases an item 

. Yearbook Sponsor issues a receipt to the student (white top copy) OR student signs a Project Cash Report (PCR) 

. Yearbook Sponsor submits a copy of the receipt (middle copy), OR a copy of the PCR, to the principalÕs secretary along with the cash 

. Cash/Checks must balance to the receipts being turned in 

. PrincipalÕs Secretary issues a receipt to the Sponsor (white top copy) 

. PrincipalÕs Secretary prepares a bank deposit slip for delivery to the bank by the District Courier 

. District Courier delivers the deposit to the bank 

. Accounting Specialist posts the deposit to the appropriate account  


Internal Controls 
If this chain of money movement is ÒbrokenÓ, an audit exception could result. The flow of money and the receipts must support all money collected and deposited. All receipts issued shall follow the following guidelines: 
. An official receipt book with pre-numbered, bound receipts in triplicate 

. Both the sponsor and secretary/bookkeeper should be present when the money is counted & receipted 

. A copy of the receipt must be given to the person paying (sponsor) 

. A copy of the receipt must remain in the receipt book 

. A copy of the receipt should be attached to the deposit documentation . Receipts should not be altered 

. Voided receipts (white original copy) must be re-attached to the receipt book 

. Receipts are not to be pre-dated or pre-signed 

. Receipt numbers must be used consecutively 


Deposit Procedures 
All cash and checks shall be deposited to the principalÕs secretary daily.  No post-dated checks will be accepted.  Funds should not be kept in classrooms, personal wallets or purses, or at home.  No cash purchases should be made Ð every dollar collected should be receipted and deposited to the principalÕs secretary.  The principalÕs secretary shall receipt [in a bound, pre-numbered receipt book] and forward all monies daily to the districtÕs depository bank by courier, or secure overnight in a locked campus safe if the deposit cannot be made the same day.   
 
CHECK PROCESSING 
  
Vendor checks will be printed, endorsed, and released on a weekly basis. Generally, checks will be generated on Wednesday of each week. At times, checks may be processed earlier or later in the week, due to holidays, staff work schedules or unforeseen events.  
All Activity Account check requests shall be approved by the appropriate principal or administrator and submitted to the Finance Department by 12:00 noon on Monday, including all supporting documentation. Requests received after this time will be processed the following week due to the need to follow the multiple internal controls. Check requests without all the supporting documentation will not be accepted, nor processed. The Finance Department shall determine the date that vendors will be paid, so employees should not make prior commitments to vendors about check disbursements.  
State law, (Texas Prompt Payment Act) requires that the Finance Department pay all invoices within 30 days of the receipt of the good and/or services or the invoice date, whichever is later. Incorrect and incomplete invoices shall be disputed in writing within ten (10) days. To avoid penalty and interest charges, all invoices shall be submitted to the Finance Department on a timely basis for payment.  Vendor provided discounts, such as net 10, shall be taken as appropriate. 
Consultants or Contracted Services 
 The Contract Management Procedures shall be adhered to in reviewing and accepting professional and contracted service contracts to be funded through federal, state or local funds, including Activity Accounts. 
Consultants (Independent Contractors) are non-employees who are contracted to perform a personal or professional service such as DJ services, alterations, repairs, etc.  A written contract is required for all contracted services. If the consultant (vendor) does not provide their own company contract, a Consultant Services Contract shall be executed by the vendor. 
All contracts shall be subject to legal review by the Chief Financial Officer (CFO) or designee. After approval by the CFO, the CFO or Executive Director of Finance shall sign the contract on behalf of the district. The Superintendent and/or designee are the only individuals authorized to sign contracts on behalf of the district.  An employee who signs a contract or agreement, without proper authorization, may be personally liable for the terms of the contract or agreement. Contracts that exceed $50,000 shall be approved by the Superintendent and the Board of Trustees.  
 The following procedures shall be used when submitting a Consultant Service Contract: 
o Submit a completed Contract Review Form to the CFO for review and attach the following.   

o Obtain the following documents from the consultant: o A Vendor Application Form 

o A completed W-9 form 

o Conflict of Interest Questionnaire 

o A Felony Conviction Form  

o If the consultant will work directly with students, a Criminal Check Authorization form and State Board of Educator Certification fingerprinting documentation. 





The approval path for all contracts shall be in accordance with the workflow illustrated below: 
 P185#yIS1

 Contracted services include services such as repairs, maintenance, technical support, and related services.   Documentation of insurance, such as general liability, workers compensation, and auto liability, shall be in accordance with the Vendor Management Procedures and submitted to the Finance Department with the purchase requisition. The Certificate of Insurance shall name ÒCrowley ISDÓ as additional insured. 
 The contract originator (campus or department administrator) shall be directly responsible to ensure that the contractor performs the services covered by the contract. After the contractor originator certifies in writing that the contractor has satisfactorily performed the services, the Finance Department shall make payment to the contractor (vendor). 
 
 
Credit Cards 
The District is currently working to begin a P-Card process.  More information will follow when the process has been established for campus use. 
 
DONATIONS AND GIFTS 
  
Donations or gifts of cash, equipment, or materials to individual schools or to the district by individuals or organizations shall become property of the district.  The Donation Form shall be completed by the donor. District employees are prohibited by law from intentionally or knowingly offering, conferring, agreeing to confer on another, soliciting, accepting, or agreeing to accept a personal gift or benefit. 
Cash and check donations shall be deposited to the appropriate account in accordance with the cash/check handling procedures. 
All donations with a value equal to or greater than $1,000 shall be approved by the CFO or Executive Director of Finance.  All donations for technology equipment shall be approved by the Technology Director. 
District funds may not be donated to another entity; therefore, donations are not allowed from the Campus Activity funds. Student Activity funds may be donated by the student-led organization to other entities, such as Red Cross, March of Dimes, Wounded Warriors, etc. The student group shall document the approval to donate funds on meeting minutes. The campus shall attach a copy of the minutes with the requisition to request the donation check.  
District staff shall not utilize an external donor website to seek donations for the district or a campus without the written authorization from the CFO or Executive Director of Finance. Donor websites shall not be established by the district for the personal benefit of a staff member or student. If a district staff member or student establishes a personal donor webpage, the webpage link may be distributed via campus email to all staff and/or students with the written authorization from the CFO. 
Student activity clubs and organizations may utilize external donor websites to seek donations for their club or organization with the written authorization from the campus principal and CFO. 
Donations, if any, received through the donor website shall be deposited in the appropriate depository account. All expenditures with the donated funds shall follow the established purchasing and payment procedures. 
Fiscal Year 
 The fiscal year begins on July 1st and ends on June 30th.  All goods and/or services received and invoiced during these dates must be paid from current fiscal year funds.   
All invoices for goods received before August, shall be submitted to the Finance Department by September 10th for processing and payment.  
 Fixed Assets & Inventory 
All fixed assets [defined as equipment with a unit cost equal to or greater than $5,000] and inventory [defined as small equipment with a unit cost between $1,000 to $4,999] purchased with Campus or Student Activity funds become the property of Crowley ISD. All assets and inventory shall be tagged and tracked in accordance with the districtÕs Fixed Asset & Inventory Procedures. 
  
FUNDRAISERS 
 
Fund-raising activities by student groups and/or for school sponsored projects shall be allowed, with prior administrative approval and under the supervision of the group/club sponsor. 
The Fund Raiser Application form shall be completed by the Club Sponsor and submitted to the Campus Principal for approval. The secretary/bookkeeper shall keep a copy of all approved fundraiser forms to ensure that funds are deposited on a timely basis. A copy of the Fund Raiser Application Form shall be forwarded to the Chief Financial Officer (CFO) for approval.   
Student participation in approved fund-raising activities shall not interfere with the regular instructional program.  
Merchandise ordered for resale should be reconciled with the corresponding invoice and/or packing list. For example, if an invoice reflects that 200 yearbooks were purchased from a vendor and receipts reflect that 180 yearbooks were sold, there must be a total of 20 yearbooks on hand at the end of the fundraiser. 
Effective July 1, 2014, the United States Department of Agriculture (USDA) limits the types of foods and beverages that may be sold to and consumed by students at school during the school day.  Note: The school day is defined by the USDA as: the period from the midnight before, to 30 minutes after the end of the official school day. These standards will impact all those responsible for selling food to students including: food service departments, fundraisers, school clubs, and groups. The Smart Snack standards do not apply to food sold during non-school hours, foods sold to adults, parents, staff, and foods brought to school by a student for personal consumption. Additional information regarding the Smart Snack guidelines is available at: http://www.fns.usda.gov/school-meals/smart-snacks-school.  
At the end of all fundraisers, the Club Sponsor shall complete the bottom of the Fund Raiser Application form and submit to the Campus Principal for review and approval. A copy shall be sent to the CISD Finance Department. 
All fundraising documentation shall be subject to audit and must be kept on file for five (5) years from the date of the fundraising event. 
Gift Cards 
Campus Activity and Student Activity funds shall not be used to purchase gift cards that will be issued to staff. Gift cards, in any amount, are taxable to the employee and must be processed through the employeeÕs paycheck and included on the employeeÕs annual tax statement (Form W-2). 
Gift cards donated to the district by outside sources are also taxable to the employee according to IRS regulations. 
Hospitality funds may be used to purchase gift cards. These funds belong to the staff and may be used in any appropriate manner, including the purchase and issuance of gift cards. 
Hotel Occupancy Tax Exemption Form 
 This form shall be used for school-related travel to conferences, workshops, etc.  Copies may be obtained from the district travel secretary or via the Texas ComptrollerÕs website at: Form 12-302, TEXAS HOTEL OCCUPANCY TAX EXEMPTION CERTIFICATE (PDF). Lodging taxes in the state of Texas, which should have been exempt, will not be authorized for reimbursement if the traveler fails to present the certificate to the hotel. The traveler will be held responsible for such charges, if any. 
The Hotel Occupancy Tax Exemption Form applies only to lodging in the state of Texas. 
 Individual Student Accounts Prohibited 
Money raised by student clubs shall be used to benefit the group rather than being credited to student individual accounts. According to the IRS Publication 557, if individual accounts are used to accumulate fundraising profits for individuals, then a) the money becomes taxable to the student; and b) the people who donate in good faith are not allowed to deduct their contributions.  
For example, if students are raising money for their club to pay for an out-of-town trip, the entire amount collected should be divided by the students participating in the trip regardless of the amount that each individual student raised through fundraising activities. 
 
INVOICES 
 
Vendors are required to submit all invoices to the Finance Department, yet occasionally an invoice will be mailed directly to a campus or department.  If any invoices are received at a campus or department, the invoice(s) must be forwarded to the accounts payable department for payment within five (5) days of receipt of the invoice.  
 
Texas law, Texas Prompt Payment Act, requires that governmental entities, such as school districts, pay all invoices to vendors within 30 days of receipt of the goods/services and/or the invoice, whichever is later.  If the Finance Department fails to pay promptly, the vendor can assess penalty interest charges.  If a staff member directly receives an invoice and/or packing list and neglects to submit on a timely basis, he/she may be held personally liable for the penalty interest charges. 
Opening and Closing Activity Accounts 
To establish a student activity account, an organization should have an approved constitution, by-laws and elected officers.  The principal shall submit a list of all clubs and organizations with the elected officers to the Finance Department on an annual basis on or before September 15th.   
Payroll Expenditures from Activity Funds 
 All Crowley ISD employees shall be paid for all job-related work performed through their regularly scheduled paycheck. At no time shall a district employee be paid directly from an activity account, or with cash. Activity funds shall not be used to pay district staff directly and/or reimburse payroll expenditures. 
Purchase of Food and Non-Food Items 
When food and non-food items are utilized for faculty, site-based meetings, etc., the expense shall be coded to the Campus Activity Account (Fund 461). All other uses, such as professional development, should be coded to the appropriate account code. 
Food and non-food purchases for staff campus celebrations, such as holidays, birthdays, or other events shall be paid from the Hospitality and/or Sunshine Accounts. 
Student Activity Funds may be used, at the discretion of the students, to purchase food and non-food items for organization-related activities if the proper documentation is attached. 
Purchase Requisition and Order Forms 
All purchases of goods and services shall be in accordance with the Purchasing Procedures.  Requisition forms should be created in the Skyward system by the requesting campus or department and submitted to the purchasing office for approval of a purchase order.  The electronic system allows users to enter purchase requests electronically, verify account balances, select pre-approved vendors, etc. at the point of data entry. Budget codes must be noted on all requisitions. 
All supporting documentation shall be uploaded through the Attachment feature in Skyward.  Supporting documentation shall include, but not be limited to: 
¥ Order forms 

¥ Contracts (fully executed with the CFOÕs signature of approval) ¥ Travel documentation such as estimated lodging, meal, registration and other expenses, including a list of participants. 

¥ Meeting minutes (signed by the class president or treasurer) to support the purchase and/or the presidentÕs or treasurerÕs signature on a Purchase Requisition Form. 


After the requisitions pass all electronic approval paths, the purchase order is automatically numbered for audit tracking purposes.  No employee shall order or receive goods without an approved purchase order.  A requisition cannot be used to place an order.  Requisition numbers may not be used to initiate on-line ordering.  According to Board Policy CH (Local), employees who violate the district purchasing procedures shall be held personally liable for the debt incurred. 
 Purchasing Laws 
 The Texas Education Code (TEC) addresses the requirement to competitively procure purchases that exceed $50,000, in the aggregate, over a 12-month period.  Since non-compliance may result in criminal penalties, this requirement will be strictly enforced. 
The purchasing laws apply to all purchases with Campus Activity funds, but do not apply to the purchases with Student Activity funds. 
Staff members shall not use their personal funds or credit card to make purchases. Unauthorized purchases shall not be subject to reimbursement with activity funds. 
Raffles 
School districts are not allowed to conduct raffles. Attorney General Opinion JM-1176 ruled that independent school districts are not qualified to hold charitable raffles. An unauthorized raffle is considered gambling under the Texas Penal Code and is classified as a Class C Misdemeanor. 
Records Retention 
All Activity Account records must be maintained for a period of five (5) years [TSLG minimum retention period & districtÕs Local Records Retention Schedule].  This includes receipt books, merchandise logs, fundraiser approval forms, profit/loss statements, etc.  At the end of every school year, the principal as part of the closeout procedures, shall collect all Student Activity Account records for storage on the campus for one (1) fiscal year, then archive for the rest of the archival period.  
 
 
 
 
 
Returned Checks 
All makers of returned checks will be charged a $30.00 fee and this process is handled through PayTek.  The district shall reserve the right to reject future checks from makers of returned checks. 
Upon receipt of returned checks, the Accounting Coordinator shall adjust the cash balance of the appropriate account(s).   
 
ROLES AND RESPONSIBILITIES 
 
Club Sponsor 
. The assigned organization sponsor (professional staff member) shall be responsible for the proper management of the student activity accounts 

. Maintains records and submit to campus principal as part of the annual close-out procedures 

. Deposits funds collected daily 

. Develops an Annual Fundraising Plan for review/approval of the campus principal 

. Submits Fund Raiser Application forms as required to the campus principal, then forwarded to the Finance Department for approval 

. Completes the bottom portion of the Fund Raiser Application form at the end of every fundraiser and submits to the Finance Department 

. Reconciles the activity account to finance reports on at least a monthly basis 


 
Campus Secretary/Bookkeeper 
. Monitors approved fundraising activities and submission of funds 

. Receives, counts, and receipts all funds (exceptions to RevTrak) 

. Accesses the RevTrak Online Payment system to review inventory and sales reports 

. Assists sponsors with activity account related questions 

. Informs Principal of problems and concerns 

. Submits monthly bank reconciliations to the Finance Department 


 
Campus Principal [Ultimate responsibility for Activity Funds] 
. Approval of all campus and student activity fund transactions 

. Safekeeping of money on campus . Proper accounting and administration of all activity funds 

. Approval of disbursements in accordance with the Finance and Activity Fund manuals 

. Provides administrative guidance to sponsors related to campus-specific activity account management procedures 


 
Sales Tax Exemption Form 
 The Sales Tax Exemption form shall be used for school-related purchases only, such as instructional supplies, items for resale, club/organization supplies, general equipment, etc. Purchase of personal items or items that will provide a private benefit for staff or students are not eligible for the sales tax exemption. For example, personal clothing and/or shoes purchased by students for their own personal use and ownership are taxable. All purchases made through the Hospitality/Sunshine accounts, such as flowers, birthday cards, decorations, food and non-food items, etc., shall be subject to sales tax since the funds belong to the staff and not the campus or district.  
Copies of the exemption form may be obtained from the Finance Department. 
Taxes, which should have been exempt, will be not be authorized for reimbursement if the exemption form was not presented to the vendor at the time of the purchase. 
Misuse of the exemption form for personal purchases constitutes a misdemeanor. 
Student Trips 
All student trips shall use the Travel Authorization Form for the approval of the Budget Owner.  The final approval will rest with the Purchasing Director and shall be obtained at least two (2) weeks prior to travel.  No travel reservations, commitments, or expenses shall be made prior to obtaining the DirectorÕs approval.  
A requisition shall be submitted for admission fees, meals, lodging, etc., if any. A copy of the Student Travel Request form shall be attached to the requisition. 
If a district-owned vehicle or school bus is requested, specific details regarding the destination, type of vehicle, departure and return times shall be submitted on the requisition through the electronic approval path at least 10 days prior to the field trip. A certified bus driver shall transport students in a school bus. 
If a district-owned vehicle or school bus is needed, the request will be made through Eduphoria and the maintenance department will assist.  Currently, the contact person is Daniel Sanchez.   
If a rental car is required, the requisition will need to state such and CISDÕs travel agent will assist with the request through the DistrictÕs travel secretary.   Currently, the contact person is Wanda Jenicke. 
 
Transfers between Activity Accounts 
Funds may be transferred between Campus Activity Funds at the discretion of the campus principal. Transfer of funds between Student Activity Funds shall be approved by the members of the student organization, the organization sponsors and the campus principal. It is recommended that transfers between accounts be settled prior to the end of the school year. 
If a student organization ceases to function or exist for at least two (2) school years, the unexpended funds of the organization shall be credited to the Campus Activity Account, PrincipalÕs Account. 
Travel Expense Ð Advances & Settlements 
Campus and student Activity funds may be used to pay for student and travel expenses for organization/club-related expenses, such as Student Council, Spanish Club, etc. The Travel Guidelines shall be adhered to in requesting funds for staff and student travel expenses. Travel expenses may include registration fees, meals, mileage, lodging, and transportation costs. 
Both Campus and Student Activity funds may be used to purchase on-site or off-site group meals for staff or students, as appropriate.  
Vendors 
The addition, deletion and update of vendors shall be in accordance with the Vendor Management Procedures. The district shall ensure that all vendors can provide the intended goods or services. 
Purchases from vendors that operate on a cash basis (do not accept purchase orders) will not be allowed.  The district participates in several cooperative purchasing programs.  A list of these programs is available from the Finance Department.  Priority should be given to these vendors since the goods and/or services have been subjected to the rigor of a competitive bid process. 
  
 
 
 
 
 
 
 
 
 
FORMS AND LOCATIONS 
 
 P325#yIS1