Cash Management Module 0 – Introduction 10/31/13 revisions

Cash Management Training Module 0: Introduction

Intro: Welcome to the District and training statement of purpose

1. Overview—who handles cash?  Definition of “cash”  General description of bookkeepers’ duties  Basic flow of cash through the District

2. Where does money come from and where does it go?  All levels o Instructional materials fees o Meal service accounts  Elementary level o Day care services o Misc. fees (lost books, etc.)  Secondary level o Misc. fees (band instruments, activity tickets, etc.)  Business or instructional services offices

3. Forms and receipts  District Student Receipt Book  Money Collection Form  Activity Fund General Remittance Form

4. Handling Cash Safely o Issue a receipt o Have 2 people count cash o Forward money to bookkeeper as soon as possible o Store cash in a locked cabinet or sare o Safeguard your personal possessions o Report thefts o Report mismanagement to your supervisor or using the Financial Integrity Hotline

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1. “Press F-5 to begin”

2. You may press the Escape key on your keyboard to stop this presentation at any time. If you want to resume viewing the presentation after you have stopped, go to the Slide Show Tab at the top of the screen and select “From Current Slide.”

3. Welcome to the Cedar Rapids Community School District! This portion of your new employee training revolves around District finances. Handling District funds is a serious matter governed by state law and Board policy. During the course of your employment, there may be times when you are asked to accept money from students, parents, or other co-workers. Even though you may not handle cash as a regular part of your job, you should have a basic understanding of how cash flows through District.

Basic Cash Flow Overview 4. Money is collected in the District’s schools and classrooms for many reasons, and often it tends to pass through several buildings or departments before being deposited in the appropriate bank account. To manage that flow of money, the District has created a number of special accounting forms and procedures. Proper use of these tools help to safeguard the District from theft or mismanagement. They will also increase your personal safety whenever you handle cash. This training package is designed to show a general overview of how cash moves through the District, and it outlines each employee’s responsibilities for handling cash appropriately.

5. The bottom line is this: Avoid accepting cash on behalf of the District for any reason until you have been authorized to do so and have received training regarding the procedures and documents used for handling cash.

6. In the meantime, instead of accepting cash, direct students or parents who wish to make payments to an appropriate staff member or to the building bookkeeper. Who is that? Let’s start with a look at the “big picture.”

Who handles cash? 7. The term “CASH” includes all money items, including currency and coins, checks, money orders, and credit card transactions. For security reasons, the District’s goal is to have a minimum of cash stored in buildings at any given time. Petty cash boxes are generally not allowed, and all money that is collected is forwarded to the District’s Accounting office and on to the bank as soon as possible after it is collected.

8. Although parents may make payments for some services and fees online, many prefer to send money with a student or to pay in person at the school.

9. When that happens, someone in the building must collect the cash, maintain records showing how much was collected and how the funds are to be distributed, forward the money to the proper accounts, and reconcile the entire process monthly. At the elementary level, the office secretary is generally responsible for managing those tasks. In middle schools, one or two building secretaries may share those duties, and in the high schools, one full-time person is

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assigned to handle money and keep financial records. For training purposes, we’ll refer to any of those people who are responsible for bookkeeping tasks as “the bookkeeper.”

10. Although the bookkeepers are primarily in charge of cash management within a building, teachers, department secretaries, administrators, food service cashiers, and other employees may also be asked to handle cash during the course of their duties. Each person who receives cash is responsible for knowing and following the proper procedures used to collect and forward that money to the Bookkeeper.

11. District funds collected by or given to the bookkeeper are forwarded to the District’s central Accounting Department, which is located at the Educational Leadership and Support Center. From there, the funds are deposited at the District’s bank. Staff in Accounting monitor all of the funds that are received throughout the District, ensuring that every dollar is credited to the proper account. They also make payments and issue refunds on behalf of the District’s schools and departments.

Where does money come from and where does it go? 12. That’s the “big picture.” Let’s look at some examples of how money comes into the District.

13. All schools within the District collect money for instructional materials. These fees may be paid online, or they may be given directly to the elementary office secretary or to the secondary school bookkeepers.

14. All schools within the District also serve meals daily. Deposits to student meal accounts may be made online or given directly to the food service cashier.

15. At the elementary level, a few schools within the District have onsite programs that provide before and after school day care. Tuition is charged weekly, and payments are managed by the Day Care Supervisor. Parents may pay online, place payments in a designated lock box in the building, or give money directly to the Day Care Supervisor. Day Care staff prepare their own deposits using a sealed bank bag, which is delivered to the bookkeeper.

16. Most other elementary collections occur only occasionally, as needed during the year. For example, if a library book is lost or damaged, the replacement cost is generally paid directly to the media specialist or media secretary after the loss occurs.

17. All cash collected in an elementary school is sent to the elementary secretary/bookkeeper, who in turn forwards the funds to Accounting for deposit in the proper accounts.

18. At the secondary level, in addition to food service and instructional materials fees, money is collected for many more reasons, and although funds may be paid online or given directly to the designated bookkeeper, more people around the building are usually involved in the collection process.

19. For example, students may pay a secretary in the activities office for activity tickets, give money to the band or orchestra director for instrument rental, or pay the phys ed teacher for towel fees. They may take part in fund-raising events or participate in athletic or performance activities that generate revenues or require fees.

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20. Regardless of the source, all funds collected by secondary building staff are routinely delivered to the bookkeeper, who compiles the records and forwards the money to its next destination. Talk with your building bookkeeper about procedures specific to your building, and ask about records that may be unique to your situation.

21. So far, we’ve given examples of receiving money in a school setting. If you are assigned to one of the District’s business or instructional services departments, you may also receive money—by mail or in person—from families, from government agencies or other school districts, from District employees, or from many other sources. If your office is in a school, take the money to your building bookkeeper. If you are located in another offsite location or at the ELSC, you will need to deliver money directly to the Accounting Department.

Forms and Receipts 22. When so many people handle cash, it is important to maintain accurate records of what has been collected, what fund should be credited, and where the funds are in the transfer process. At each step along the way, a proper receipt should be issued by the person accepting the cash. The receipt begins the formal documentation process, and it protects both the person who transfers the cash and the one who receives it.

23. Parents who pay fees online may print out a receipt at home during the transaction. Bookkeepers receiving payments at school generate receipts electronically using a computer program called the KEV System. With the exception of food service transactions, all other staff must document the receipt of cash using either a District Student Receipt book for individual receipts or a Money Collection Form for small mass collections. Your bookkeeper can help you select the proper forms and tell you how to get them.

24. For individual transactions—for example, accepting payment for a lost book—staff may use a pre-numbered receipt from an official District Student Receipt Book. Each receipt provides details about the transaction: who paid, how much cash was collected, why it was collected, and who received the money. You may wish to note additional details on this receipt as needed to clarify any transaction.

25. Copies of the receipt are used to document the transaction and begin the process of tracking the cash. The white copies are given to the payers. The pink copies are stored in your building bookkeeper’s file, and the yellow copies stay in the receipt book to provide a permanent chronological record of the transactions. All of the receipts issued in the building are official documents, and they must be properly filed and maintained by the bookkeeper for a minimum of 5 years.

26. If you need to void a 3-part receipt, you simply write VOID and add your initials to each copy of the receipt, and then, if needed, issue a new one.

27. The white and pink copies of the voided receipt will be filed in your building file, and the yellow copy will stay in the receipt book.

28. Sometimes members of the staff need to collect a number of relatively small amounts from a group of people—for example, collecting towel fees from members of an athletic team. In such

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cases, it’s not necessary for you to fill out individual receipts, but you still need to keep a record of each student’s payment. The Money Collection Form lists up to 35 payments on a single page. This form speeds up the collection process.

29. If you use this form to collect cash, fill in the “Activity” line at the top of the form showing why the money was collected. In the middle of the form, fill in the name of each person making a payment, noting whether the payment was made by check or in cash. Make sure the entries are legible—the bookkeeper will need this data for the official records, especially if a refund is requested at a later date.

30. When the collection is complete, or when the form is full, tally the amount collected by check and the amount collected in cash. Enter those amounts and the grand total received at the bottom of the form. That amount should match the amount of money you have on hand. Enter your name and signature at the top of the form, along with the final date of collection.

31. If you are not sure when you can use the multiple receipt form and when to use individual receipts, please contact your bookkeeper or the Manager of Accounting for clarification.

32. Regardless of which form of documentation you use when you collect cash, all of the money and copies of the receipts should be passed along to the bookkeeper as soon as possible.

33. At the secondary level, you should also complete an Activity Fund General Remittance Form, which further documents the denominations of cash turned in and designates the fund to be credited. The bookkeeper will check to see that the totals on all of the forms and receipts match the amount of cash turned in, and then issue an individual receipt for that amount to the person who collected the cash. This new receipt documents the fact that the cash has passed from one person to another.

Handling Cash Safely 34. During all cash handling situations, the safety and security of staff, parents, and students should be your top priority. If you collect or handle cash for the District, please follow these guidelines: When you collect cash, always issue a receipt or document the collection with a Money Collection Form.

35. If you handle large sums of cash, ask another person to help you count the money, cross- checking each other for accuracy.

36. Always count and store cash in a private area out of sight of students, parents, and other staff. Don’t leave cash where someone can reach it if you are distracted.

37. Forward any money you collect to the bookkeeper as soon as possible after you receive it— preferably on a daily basis. Do not wait for the collection period to be complete to transfer cash.

38. If you must store cash for a short period of time, keep it in a locked filing cabinet or in a safe.

39. Every staff member, whether you collect cash for the District or not, should take steps to minimize theft in your office or classroom. Lock your valuables up during the day in a safe

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place, and avoid putting loose change in your desk. It only takes a momentary absence or distraction for a theft to occur, and the District is not responsible for your personal items.

40. In the event of a theft, contact the Cedar Rapids Police Department, call the Business Services office immediately, and fill out a Damage Loss Report form to document the loss.

41. As you can see, the District takes fiscal responsibility very seriously. If you feel someone who works for or with the District is engaged in financial mismanagement, you may contact your supervisor, principal, or the Accounting Manager. If you feel more comfortable addressing your concerns anonymously, you can use the Financial Integrity Hotline. In either case, your information will be treated confidentially.

42. That’s the general overview. If your new position requires handling cash on a routine basis, you will be required to attend a Cash Management Training class when you begin. Talk with your supervisor about scheduling a time with the Accounting Supervisor. In addition, employees who routinely handle cash are required to complete annual retraining. You will be contacted by the Accounting Supervisor if you are required to do so.

43. Finally, if you have any questions about this information, please call the Manager of Accounting or call the District’s Business Services office. Thanks for maintaining fiscal integrity, and again, welcome to the District!

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