Accounting Procedures Handbook

SCHOOL ACTIVITIES FUND 17.1 TRUST AND AGENCY FUNDS I. OVERVIEW The Trust and Agency Funds are funds held in a fiduciary capacity by the Board of Education. The School Activities Fund is an agency fund administered by the individual schools within Wicomico County. The school principals and bookkeepers are responsible for maintaining these funds. The bookkeepers make deposits, write checks, and handle all of the local financial transactions of the school. The Finance Department operates as oversight for these funds. There is an Accounting Manual that outlines the proper accounting procedures that bookkeepers are to follow. II. CONTROL OBJECTIVES • To ensure the School Activities Fund is reported in accordance with generally accepted accounting principles. • To ensure the Board sustains proper oversight of the School Activities Fund. • To ensure compliance with applicable laws and regulations. III. PROCEDURES School Activity Funds • School Bookkeepers maintain their school’s financial records in accordance with procedures outlined in the Accounting Manual for Bookkeepers. See Sect. 23, Appendices for a copy of this manual. • Each month, the school bookkeeper reconciles the school’s checking account using the “Financial Position/Bank Reconciliation” form. The school’s principal reviews the monthly bank reconciliation. The bank reconciliation is then forwarded to the Accountant III in the Finance Department. • Accountant III reviews the bank reconciliation provided by the bookkeeper and compares the reconciled balance with the general ledger to ensure that all entries have been made in the accounting software. If needed, the Accountant III will assist the bookkeeper with any problems that may arise. • Periodically, the Accountant III will visit schools to ensure compliance with Board policies and procedures.