Accounting Procedures Handbook

15 SCHOOL CONSTRUCTION FUND I. OVERVIEW The School Construction Fund is used to account for the construction of new buildings, building additions and renovations, and the purchase of equipment. All major school construction projects must be approved by the State InterAgency Committee for School Construction (IAC). This is a state agency which oversees the disbursement of state funds for school construction. Each year the Board submits a 5-year Capital Improvement Plan to the IAC and the Wicomico County Council. The IAC and the County will decide which projects will be funded each year. The IAC will be responsible for disbursing state funds and the County typically provides their portion with the sale of General Obligation Bonds. As projects progress, funds are drawn down based on a percentage of work completed. II. CONTROL OBJECTIVES • To ensure reporting of the School Construction Fund in accordance with generally accepted accounting principles. • To ensure all school construction funds are properly expended and accounted for. • To ensure that all reporting is completed on a timely basis. • To ensure compliance with applicable laws and regulations. III. PROCEDURES A. Purchase Order and Invoice Processing See Section 12 Liabilities and Section 18 Procurement for additional information related to procedures surrounding purchasing and accounts payable, including school construction. • Facilities Director approves purchase orders via BusinessPlus workflow. • School Construction Accountant verifies account numbers with description and verifies the availability of funding for the purchase order. Accountant corrects information, as necessary. • The Accounts Payable Accounting Associate receives invoices. Those invoices identified as School Construction are sent to the Facilities Office Associate. • Facilities Office Associate stamps the invoice and has the invoice approved for payment by the Facilities Director. B. Accounts Receivable Billing - Request for County BondReimbursement • Once a construction vendor has been paid, Cash Receipts/Accounts Payable Accounting Associate produces an invoice to send to the County. This invoice is produced using an Excel spreadsheet. The billing information is entered into the Excel invoice. Print invoice and check for accuracy. Once correct, 3 copies of the invoice are printed. Forward one copy to School Construction Accountant for approval. • Once School Construction Accountant has approved the invoice, forward the two remaining copies, the invoice batch with backup, and the non-negotiable copy of the check to the Finance Secretary. • Finance Secretary creates a cover letter addressed to the Director of Finance of Wicomico County to accompany the invoice for reimbursement. • Finance Secretary copies the check vouchers and mails them along with the signed cover letter and the invoice for reimbursement to the Finance Office of Wicomico County. • Finance Secretary files copy of the invoice and check vouchers in the appropriate bond file.