FILE:  DIA-R

Cf:  DIA

 

ACCOUNTING SYSTEM

 

 

INDIVIDUAL SCHOOL FUNDS ACCOUNTING

 

The principal of each school is solely responsible for the sound fiscal management of funds associated with his/her school.  Incurring deficit spending shall be strictly prohibited.

 

In addition, the following guidelines shall control the accounting of school funds:

 

  1. School activity fund checking accounts must maintain adequate cash in the bank, at all times, equal to the balance due on any account or all accounts with a positive balance, if payment is required.
     

  2. School operating accounts shall maintain an adequate total budget balance, at all times, equal to the balance due on any line item, or all line items with a positive balance, if payment is required.
     

  3. Before a purchase order or expenditure is made from any line item in the school's activity or operation budget, a positive balance must first exist for that line item, and when deducted, the remaining balance is never to be less than zero (0).  NOTE:  Proposed encumbrances and/or expenditures are not to be erroneously classified in order to circumvent this policy.
     

  4. Overspending of any line item or of a total budget shall be prohibited.
     

  5. If overspending of any line item or of any budget is detected, the following shall occur:

 

    1. Issuance of purchase orders and spending shall be suspended immediately, and a conference with the Superintendent and Business Office will be required before a school will be authorized to resume spending.
       

    2. If a serious breach of these policies is detected, the principal shall appear before the School Board Finance Committee for review of these violations.

 

  1. Schools shall submit their activity fund financial statements to the business office by the 15th of each month.  Failure to receive the financial statements shall terminate all spending and issuance of purchase orders for that school.
     

  2. All schools' operations budgets must have an amount equal to 10% of their net yearly allocation set aside in a contingency line item.  No spending from this line item shall be permitted without written authority from the Superintendent.

 

 

Ref:     Board minutes, 2-22-90

 

Washington Parish School Board