REPORTING

1. The Principal is out for an extended period of time and my reports are due. Do I wait to send in the reports until the Principal returns? No, you shouldn't wait to send in the reports. You should send in the reports with only your signature and a note explaining the situation. The signed reports should be sent in when the Principal returns.
2. Which financial reports are sent in to the Office of Accounting each month? Each month, the administrative secretary/bookkeeper/school financial assistant completes a series of financial reports in the SSAM computer program. Copies of the following reports are sent to the Office of Accounting each month:
   
   • Balance Report - signed and dated by the Principal and the bookkeeper
     
   • Bank Reconciliation Report - signed and dated by the Principal and the bookkeeper
     
   • Bank Statement
     
     Please retain the original copies of these reports at your school and only send copies.

FIELD TRIPS

1. What should I do in the event that a field trip is cancelled? In the event that a field trip is cancelled, several things must be taken into consideration. For example, is the field trip cancelled or postponed? If another trip is planned for the same group of students, the funds can be applied to that trip. If another trip is NOT planned, the funds should be refunded. Please contact the Office of Accounting to determine the proper method for remitting funds back to the parents of the students.
   
   Regardless of the option chosen, the school must provide written communication to the parents to keep them informed. The school must also get the parents' approval for the use or distribution of the funds.
   
   
2. We don't always know how much our field trip admission costs are going to be until we arrive at our destination; however, there usually isn't an administrator with us. How do we pay for the trip without using a blank check or cash? Schools cannot issue blank checks or pay for materials or services with cash. BCPS Policies and Procedures indicate that cash should never be used to pay for expenditures from the School Activity Funds. Additionally, the signing of checks with the amount and/or payee left blank is not allowed. The school should plan the trip and communicate with the payee as to the costs involved. Discuss the options for payment with the payee. The school could bring a check for the estimated amount and then request a refund. In the event that the school underpays on its estimate, a separate check for the remaining amount owed can be issued upon return to the school.
   
   When the amount of a signed check is left blank, the school loses all control of the amount for which that check is written and then cashed.

REVENUES

1. What should I do if the faculty and staff are in the habit of keeping money in the classroom instead of bringing it to the office to be receipted in a timely manner? Money should not be held in the classroom! The practice of holding money in the classroom for extended periods is not in compliance with guidelines in the Accounting Manual for School Activity Funds. The Manual states, "All Faculty and Staff members are required to remit all money collected to the Bookkeeper on a daily basis." (Page G.1) The Principal and the Administrative Secretary/Bookkeeper/School Financial Assistant must communicate the proper money handling procedures in the school's Faculty Handbook. These procedures should be reinforced throughout the year, as needed. Specific instances should be discussed individually with applicable faculty and staff.
   
   In addition, the Office of Internal Audit is available to make a presentation at a faculty meeting regarding the importance of proper money handling procedures. Another option is to show a video produced by the Office of Internal Audit called "Managing the Money: School Activity Funds" that can be shown to all faculty and staff.
   
   
2. How do I order more receipts? To order more receipts, contact the Office of Accounting at 410-887-4345, extension 343 or by email at gpeterson@bcps.org.

FUNDRAISING

1. Should I allow a fundraising vendor to count and receipt money for the school? NO!!! Although it may be convenient, a school should never let an outside representative count and receipt money for the school.

EXPENDITURES

1. It seems as if both of the administrators are never in the building at the same time when I need a check signed at my elementary school. I know that as a bookkeeper, I'm only supposed to sign checks in emergency situations. Does this constitute an emergency? No. Proper planning should be implemented so that there is ample time to get the signatures of both administrators. Bills should be paid on a regular basis and should not be left until the last minute. The Principal may consider adding another person as an authorized signer, perhaps a Guidance Counselor or Team Leader, to sign if one of the administrators is not available. Allowing the bookkeeper to sign checks weakens the internal control structure at the school and should be avoided whenever possible.
2. How do I process a check-printing fee that appeared on my bank statement this month? You can refer to the explanation for recording check-printing charges on page 3 of the "Various SSAM Instructions." These instructions state:
   • From the Main Menu in SSAM, choose #1 - Expenditure File.
     
   • Select F5 to "Add."
     
   • The vendor name is the name of your bank.
     
   • Skip over the address information.
     
   • The date should be the date listed on the bank statement.
     
   • The check number should be all zeros: 000000.
     
   • Skip over the claim number.
     
   • The following description should be entered: "To post check printing charge."
     
   • The total amount is the amount that was listed on the bank statement.
     
   • Select Page Down.
     
   • The account number should be the Discretionary Account (30-3010-00)
     
   • The amount is the amount that was charged on the bank statement.
     
   • Hit "Insert" to store.
3. I have many old checks on my bank reconciliation report. How do I get rid of them? If the checks are old, you must contact the individual or organization to which the check was written. Ask if the check is going to be cashed. If you find out that the check was lost, you will need to void the old one and reissue a new check. You can refer to the explanation for voiding lost/old checks on page 3 of the "Various SSAM Instructions." These instructions state:
   
   • From the Main Menu in SSAM, choose #1 - Expenditure File.
     
   • Select F5 to "Add."
     
   • The vendor name is the original vendor of the check.
     
   • Skip over the address information.
     
   • The date must be a current month date (usually the last day of the current month).
     
   • The check number should be the check number you are voiding.
     
   • Skip over the claim number.
     
   • The following description should be entered: "To void lost/old check."
     
   • The total amount is always the NEGATIVE of the amount for which the check was originally posted. For example, if the original check was posted for $15.00, the voiding entry of this check would be -$15.00.
     
   • Select Page Down.
     
   • The account number must be the account to which the check was originally posted to.
     
   • The amount is the same amount that was entered under "Total Amount": the NEGATIVE of the original check amount.
     
   • Hit "Insert" to store.
     
     Special Note: When you complete the batch marking procedures for the reconciliation, make sure that you batch mark both the original positive check entry and the negative check entry.
4. Who is supposed to sign the yellow check voucher? The check voucher requires 3 signatures:
   
   1. The person who requests payment.
      
   2. The person who receives goods.
      
   3. The person who authorizes payment.
      
      Example 1: A teacher requests reimbursement for purchases at a teacher supply store. The first signature is from the teacher because he/she is requesting the check. The second signature is also from the teacher because he/she received the supplies at the store. The third signature is ALWAYS from the PRINCIPAL, who authorizes all payments.
      Example 2: The secretary requests payment of the phone bill. The first signature is from the secretary because he/she opened the bill from the phone company and is requesting that a check be written to pay them. The second signature is from whoever can verify that phone service was received in the building; this can be the secretary, the Principal, etc. The third signature is ALWAYS from the PRINCIPAL, who authorizes all payments.
      
      
5. What documentation is required in order for a school check to be issued? Original documentation is needed before a school check is issued. Original receipts, invoices, or bills should be presented and should be attached to the yellow check voucher. No photocopies or fax copies are allowed, unless the Principal reviews the copy and notes on it "Okay to make payment from photo/fax copy." In addition, the Principal's signature is also required on the photocopy.
   
   The only exception to this rule is when reimbursement is requested from the Board of Education. The original receipt/invoice/bill is sent to the Office of Accounting and Reimbursement and a photocopy is attached to the check voucher.
   
   
6. Should I maintain a running balance in my checkbook? Yes! Maintaining a running balance in your checkbook is a requirement per the Accounting Manual for School Activity Funds. The running balance enables you to know, at a glance, how much money is in your checking account. Without referring to the running balance, you face the risk of overdrawing your checking account.

CHART OF ACCOUNTS

1. Have I done something wrong if my Void Account (00-0000-00) shows a negative or a positive balance? Yes, most likely you have voided a check incorrectly or made a posting error. The Void Account must always have a zero ($0.00) balance. This account is only used to post checks or receipts that were voided in the current month. (In other words, the checks or receipts that you made an error on when you were writing them.) You must conduct research to determine which check(s) or receipt(s) were entered incorrectly.
2. Can our school use the Discretionary Account (30-3010-00) to record expenditures that will later be reimbursed from the Board of Education (BOE)? No! A special account, called the Board of Education (BOE) Receivable Account, must be used to record ALL expenditures that will be reimbursed from your school's operating budget. If the Discretionary Account were used to record these expenditures, it would be difficult to track reimbursement activity and this could result in a loss of funds.

SALES TAX

1. Our teachers incorporate the use of publications such as "Time for Kids" in the classroom. The students purchase these publications, use them in the classroom, and then take them home. Are these considered taxable sales? Yes! The State's guidelines as to whether the sale of an item is taxable relates to the possession of the item. Generally, if the purchaser of the item maintains possession of the item after the sale, then the transaction is taxable (with the exception of some food sales). The school must collect and remit sales tax on these sales.
   
   
2. The new school store sponsor sold items at the school store but did not include the sales tax in the amount collected from students. Are we still responsible for remitting the sales tax? Yes, your school is responsible for remitting this tax, even if it was not collected from students.
   
   
3. My school has a tax exemption certificate. Does that mean that the school does not have to collect and remit sales tax to the Comptroller? No! The tax exemption certificate is issued for items that are purchased by the school system in relation to the instructional program. Therefore, when school employees buy things that are to be used and kept within the school system, they are not required to pay sales tax at the time of purchase.
   
   
4. My school sold some tee shirts that we didn't make a profit on! Do we still owe sales tax? Yes, the school must collect tax on sales even if the items being resold sold at or below cost. In addition, the school must collect tax on sales even when the items were donated.
   
   
5. How do I know when sales tax is due? Each school should receive a notice from the Comptroller of Maryland listing the due date. Some schools are required to pay sales tax on a monthly basis, some on a semi-annual basis, and some on an annual basis. For more information about Sales Tax, see the SAF News & Views Newsletter, Volume 1, Issue 4.
   
   If a school does not receive a notice from the Comptroller of Maryland, contact the Office of Accounting for additional direction.
   
   
6. Sales tax is a confusing topic. Where can I go to get more information? The Office of Accounting can be used as a resource if there is a question as to whether a transaction constitutes a taxable sale. The State of Maryland Comptroller's Website can also provide valuable information related to the Sales and Use tax.

CONTRACTED EMPLOYEES

1. We hire several different individuals to perform various services at the school such as piano tuning, storytelling, speakers, magicians, etc. Generally, these people give me a handwritten receipt or invoice for their services and I write an SAF check out to them in their name, not a business name. I've recently been told that I shouldn't do this, but I don't know why or what the proper process is supposed to be. What is the proper procedure? The situation that you are describing is known as a payment to an individual for contracted services. Federal tax regulations require that an organization file a Form 1099 with the IRS to report any payments to individuals for contracted services. As the schools are not authorized to issued Form 1099's at year-end, all payments to individuals for contracted services must be paid by the Accounting Department through the school's budgeted funds. The following steps must be completed in order for a check to be issued to an individual:
   • The school must submit a check request, with the appropriate documentation, to the Accounting Office.
     
   • On the check request form, the payee must be identified as the individual who provided the contracted services.
     
   • Accounting will then issue a check directly to the individual. The school can then reimburse their budgeted funds by remitting an SAF check to the Accounting Office (BCPS).
     
   • It is important to remind teachers and staff that, when hiring individuals for contracted services, they must be sure that the individual understands that he/she will not receive payment on the day that the service is rendered. It will be approximately one to two weeks from the time the school requests the reimbursement until the individual receives his/her check in the mail.
     
   • The school must make every effort to submit the check request immediately after the service is rendered.

JOURNAL VOUCHERS

1. When and why are journal entries required to be prepared and posted?
   Journal entries are completed for the following reasons:
   
   • To post investment interest (once a year)
     
   • To correct posting errors (throughout the year)
     
   • To transfer profits (throughout the year)
     
   • To transfer funds between accounts (throughout the year)
     
     Journal entries are prepared by the bookkeeper and reviewed and approved by the Principal. The journal entries must be posted to SSAM.

AUDITS

1. When an individual arrives unannounced at the school to audit the financial records and/or cash, how can the school be assured that these individuals are Baltimore County Public School auditors? BCPS auditors announce their presence upon arrival at the school to either the Principal or an Assistant Principal. All BCPS auditors carry and display a BCPS picture identification that lists the person's name and title. Ask to see this identification if it is not displayed and then inform the Principal or Assistant Principal that the auditors are in the building.
   
   
2. Will there ever be an occasion when the auditors need to take records or documents from the school when conducting an audit? Yes, this is a routine practice of the Office of Internal Audit. The auditor will complete a "Receipt for Temporary Custody of Records and/or Documents." This form lists the records and/or documents that are being taken. It is signed and dated by the auditor and the person who has custody of the records/documents. Both parties keep a copy of the form until the records/documents are returned and accounted for by both parties. Upon return, the form is again signed and dated by both parties indicating that the records/documents were returned.

PTA FINANCIAL MATTERS

1. Are PTA funds supposed to be kept in the school safe? Never! PTA and BCPS guidelines state that no PTA monies are ever to be kept in the school safe. PTA funds and school funds are to be kept COMPLETELY SEPARATE!!!
   
   
2. Is the school Principal supposed to receive a copy of the PTA financial reports? Yes! As a voting member of the PTA Executive Board, the Principal should request to see the PTA treasurer's reports.

GETTING ORGANIZED

1. What is the best way to organize my SAF financial documentation? We have found that the best organizational method is a monthly folder. The folder should be labeled with the month and year. The folder should contain:
   • Check Vouchers
     
     • The check vouchers should be filed in numerical order by check number.
       
     • The check voucher should be stapled to original documentation supporting the expenditure.
       
     • The only time a photocopy should be included as documentation is when the expenditure is to be requested for reimbursement from the Board of Education or if the photocopy is approved by the Principal (see the Expenditures Section, Question # 5 for additional information).
       
   • Receipts and Deposits
     
     • The yellow copy of the receipt(s) should be attached to the associated deposit slip(s).
       
     • The receipts should be filed in numerical order by receipt number.
       
     • The receipt and deposit packets should be filed in date order by deposit date.
       
   • Journal Vouchers
     
     • The journal vouchers should be filed in numerical order by JV number.
       
   • SSAM financial reports
     
   • Bank statement
     
   • Bank-issued credit or debit memos
     
   • Cancelled checks should be filed in numerical order in a separate box or filing system.
     
   • Additionally, the school might find it helpful to create a separate file for NSF checks and collection efforts.

The Free and Reduced-Price Meals Eligibility Verification Process

1. Why was I selected?
   • Baltimore County Public Schools is required by federal and state regulations to conduct the annual verification process for a sample of households who participate in the Free and Reduced-Price Meals Program.
     
     
2. How was I chosen?
   • The verification sample is chosen from the approved Household Applications for Free and Reduced-Price School Meals on file.
     
     
3. What information do I have to send?
   • You must send documents or information that verifies the current gross income for your household.  “Current” means income received at any point in time between the month prior to the application and the date of verification.  “Gross income” means money earned before deductions.  Each household was sent a letter and a listing of acceptable documents and information to verify the household’s income.
     
     
4. Where do I send my information?   
   • Use the enclosed self-addressed envelope.
   • Mail it to us at:
     
     Baltimore County Public Schools
     Office of Internal Audit
     1940 G Greenspring Drive
     Timonium, MD 21093
     
     
   • Fax the information to our office at 410-887-7731.

5. What if the household size or income has changed since I applied?
   • You may apply for free and reduced meals at any time during the school year.  If you are not eligible now, but have a change such as a decrease in household income, an increase in household size, become unemployed, or receive food stamps or temporary cash assistance for your children, you may fill out an application at any time.

6. What happens if I do not send in the information that was requested? Can I reapply for free or reduced-Price meal benefits?
   • If you do not provide the requested information by the required deadline, the meal benefits will STOP for all of the children in the household who attend a Baltimore County Public School.
   • You may reapply for benefits at any time during the school year. However, you will be required to provide the verification documentation at the time of reapplication.
   • Only ONE application for each household needs to be completed. 
     
     
7. What is the income limit for free meals?  What is the income limit for reduced-price meals?
   • Eligibility for free or reduced-price meals is based on household size and income.
   • The income eligibility chart is on the parent letter that comes with the application for benefits.  Applications are available at the school.

8. How much do meals cost?
   • Reduced-price breakfasts cost $.30 for both elementary and secondary students.
   • Reduced-price lunches cost $.40 for both elementary and secondary students.
   • Paid breakfasts cost $1.40 for elementary students and $1.55 for secondary students.
   • Paid lunches cost $2.90 for elementary students and $3.00 for secondary students.

If you have questions or need help, please call the Office of Internal Audit at 410-887-4239; or you may call toll free at 1-800-698-9155. You can also access Internal Audit’s website www.bcps.org/offices/audit/ or the Office of Food and Nutrition’s website www.bcps.org/offices/ofns/free_reduced_program.html

If you have specific questions relevant to your school, you should contact the Office of Internal Audit.