Accounting Procedures Handbook

PRIVATE PURPOSE TRUSTFUND 17.2 TRUST AND AGENCY FUNDS I. OVERVIEW The Trust and Agency Funds are funds held in a fiduciary capacity by the Board of Education. The Private Purpose Trust Fund is used to account for funds held by the Board for scholarships and other student awards. II. CONTROL OBJECTIVES • To ensure the Private Purpose Trust Fund is reported in accordancewith generally accepted accounting principles. • To ensure the Board sustains proper oversight of the Private Purpose Trust Fund. • To ensure compliance with applicable laws and regulations. III. PROCEDURES Scholarship and Award Funds • Each month, the Accounting Manager will print activity recorded in the general ledger accounting software for Fund 700. • The Accounting Manager records a General Journal Entry to reclassify receipts and disbursements in the individual accounts maintained under Fund 700. Journal entries are reviewed and approved by the Comptroller via workflow. • As necessary, scholarship and award requests are reviewed, approved, and disbursed to the proper recipients. • On a periodic basis, the Accounting Manager reconciles the Claim on Cash accounts for each fund in relation to the reconciled pooled cash account.