()ne����!�! Business Office Procedures Manual Webster Central School District
B -__,,, ..- 0 ci
Business Office • Webster CSD
Annual Budget Development and Reviewing Budget to Actual Information Table of Contents 1. Introduction 2. Roles and Responsibilities 3. Budget Preparation Process o 3.1. Initial Budget Drafting o 3.2. Budget Draft Attachments 4. School Budget Hearing o 4.1. Budget Information Dissemination o 4.2. Budget Notice o 4.3. Variance Analysis 5. Adoption of Budget o 5.1. Public Budget Hearing o 5.2. Adoption of Approved Budget o 5.3. Contingency Budget 6. Administration of Budget o 6.1. Administrative Duties o 6.2. Budget Transfers o 6.3. Budget to Actual Reports
1. Introduction This section outlines the procedures from drafting the budget of the District for the next school year as well as reviewing and managing current year budget to actual information throughout the year. The purpose is to ensure that the annual operating budget is aligned with the District’s principles and implements expenditures in accordance with the voters’ approved budget from the previous year.
1
2. Roles and Responsibilities 1.
Oversees budget processes and ensures compliance with financial regulations and implementation of the drafted budget.
2.
Crafts the budget in alignment with the Superintendent’s framework and is responsible for reviewing budget to actual reports prior to providing to the Board of Education.
3.
Treasurer/ Deputy Treasurer: Prepares budget to actual reports.
4.
Monitor their department/building’s budget performance and provide input during reviews.
3. Budget Preparation Process 3.1. Initial Budget Drafting 1.
The Superintendent drafts a budget with three (3) components: o
expenditures for programs of the District, includes salaries of employees performing mainly teaching duties and all transportation expenses.
o
financing and investing activities of the District.
o
all other expenditures not related to those mentioned above.
3.2. Budget Draft Attachments The following documents shall be appended to the proposed budget: 1.
A detailed statement of the total compensation to be paid to the Superintendent, and any Assistant or Associate Superintendent in the ensuing school year.
2.
A list of all other school administrators and supervisors, if any, whose annual salary for the coming school year will be at or above that designated in law.
3.
A School District Report Card prepared pursuant to Commissioner's regulations.
4.
A Property Tax Report Card prepared in accordance with law and Commissioner's regulations.
5.
A Tax Exemption Report prepared in accordance with law.
2
4. School Budget Hearing 4.1. Budget Information Dissemination 1.
The Board will hold an Annual Budget Hearing, in accordance with law, to inform and present to District residents a detailed written statement regarding the District's proposed budget for the upcoming school year.
2.
The Budget Hearing shall be held only between seven to fourteen days prior to the Annual District Meeting and Election or Special District Meeting.
3.
Notice of the date, time, and place of the annual budget hearing and other required information will be included in the notice of the Annual Meeting and Election and/or Special District Meeting.
4.
Any resident of the District may request a written copy of the proposed budget including all the attachments. Requests must be made at least seven (7) days before the budget hearing. Copies will be prepared and made available at the school district office, public or associate libraries within the district, and on the district website, if one exists. Copies will be available to district residents during the 14-day period immediately preceding the Annual Meeting and Election or Special District Meeting at which the budget vote will occur.
4.2. Budget Notice 1.
The District will mail a School Budget Notice to all qualified voters of the District after the date of the Budget Hearing, but no later than six days prior to the Annual Meeting and Election or Special District Meeting at which a school budget vote will occur.
2.
The Budget Notice will compare the percentage increase or decrease in total spending under the proposed budget over total spending under the District budget adopted for the current school year.
3.
The District shall also include in the notice the following: o
The school tax levy limit.
o
The proposed school year tax levy without permissible exclusions to the school tax levy limit.
o
The total permissible exclusions; and
o
The proposed school year tax levy with permissible exclusions to the school tax levy limit.
4.
The Notice will also include comparison of the tax savings under the basic school tax relief (STAR) exemption and the increase or decrease in school taxes from the prior year.
5.
The Notice will also set forth the date, time, and place of the school budget vote.
3
5. Adoption of Budget 5.1. Public Budget Hearing 1.
The School Board shall recommend, seek public feedback, and input for the proposed budget of the Superintendent through a public budget hearing not less than seven nor more than 14 days prior to the Annual District Meeting and Election at which the budget vote is to occur.
2.
Changes to the proposed budget of the Superintendent may be made by the Board before submission to District voters.
3.
The proposed budget and any changes to it involving expenditure of money will not be submitted more than twice for voting of qualified District voters.
5.2. Adoption of Approved budget 1.
The adopted District budget will become the basis for establishing the tax levy on real property within the District.
2.
The District may either resubmit the original budget or submit a revised budget if the first proposed budget is not approved in the Annual District Meeting and Election.
5.3. Contingency Budget 1.
In case the proposed budget is not approved by voters after a second public submittal, or the Board elected not to present the proposed budget for public vote for a second time. The Board must adopt a Contingency Budget not greater than the prior year’s levy. The administrative portion should be capped at the lesser between the following. o
The percentage of the administrative component to the total budget in the prior year's budget, not including the capital component; or
o
The percentage that the administrative component comprised in the last proposed defeated budget for the subsequent year, not including, the capital component.
4
6. Administration of the Budget 6.1. Administrative Duties 1.
The Superintendent, together with administrative staff, is responsible for the administration of the approved budget.
2.
The responsibilities of the Superintendent include, but are not limited to: o
Orient District employees with the provisions of the final approved budget and guiding them in effectively and economically planning and operating within these provisions.
o
Provide directions in implementing accounting controls required by the New York State Uniform System of Accounts for School Districts, the Board, and other procedures, as deemed necessary.
o
Update all operational units via periodic reports with regards to the status of their individual budgets.
6.2. Budget Transfers 1.
The Superintendent may transfer funds among functional unit appropriations provided that they are within the limits set by the board and are only for ordinary contingent expenses.
2.
The transfer made shall be included in the quarterly Board report for information purposes.
6.3. Budget to Actual Reports 1.
The Assistant Superintendent for Business will run reports in coordination with the District Treasurer to review budget to actual variances and ensure budget expenditures are on track with expectations and that substantial underspending is investigated and reviewed.
2.
The Board of Education may request and should review budget to actual reports through the regularly scheduled board meetings and be informed of any unreconcilable budget to actual discrepancies identified by District management.
5
Bank Reconciliations Table of Contents 1. 2. 3. 4. 5.
6. 7. 8. 9.
Introduction Scope Responsibilities Required Documentation Bank Reconciliation Procedures o Step 1: Gather Necessary Documents o Step 2: Compare Bank Statement to Ledger o Step 3: Identify and Investigate Discrepancies o Step 4: Adjust the General Ledger o Step 5: Prepare the Reconciliation Statement o Step 6: Review and Approve the Reconciliation Handling Discrepancies o Common Discrepancies and How to Address Them o Escalation Procedures Documentation and Record Retention Frequency and Deadlines Internal Controls and Segregation of Duties
1. Introduction The purpose of this section is to outline the steps and controls required to complete a bank reconciliation accurately and efficiently. Bank reconciliations are essential to verify that the District's cash records are consistent with bank statements, ensuring the accuracy of financial reporting and identifying any discrepancies, errors, or fraudulent activity.
2. Scope This procedure applies to all bank accounts maintained by the District. It includes steps for reconciling cash accounts, resolving discrepancies, and maintaining proper documentation for audit and review purposes.
6
3. Responsibilities 1.
Oversees the bank reconciliation process, reviews completed reconciliations and approves any adjustments.
2.
Performs the bank reconciliation by comparing the District's ledger to bank statements, identifies discrepancies, and makes necessary adjustments. Responsible for obtaining bank statements on behalf of the district.
3.
Performs the reconciliation in conjunction with the Treasurer.
4.
Responsible for accepting and approving monthly Treasurer’s Report wherein the bank reconciliations are reported.
4. Required Documentation 1.
The official monthly statement from the bank showing all transactions and the ending balance.
2.
General Ledger (GL): The organization's financial records showing all cash transactions.
3.
The report from the previous reconciliation to reference any outstanding items.
4.
Includes checks, deposit slips, wire transfer confirmations, and any other relevant documentation for transactions. May be supplemented with expense reports and cash receipts journals produced from the software to provide greater detail for auditing and reviewing specific transactions.
7
5. Bank Reconciliation Procedures Step 1: Gather Necessary Documents 1. Obtain the bank statements for the relevant period, ensuring it covers all transactions for the month. 2. Print the cash account ledger for the same period from the accounting system. 3. Collect any additional supporting documents, such as canceled checks, deposit slips, and electronic payment receipts. All financial transactions occurring within the statement period should have documented support and is critical for an accurate reconciliation.
Step 2: Compare Bank Statement to Ledger 1. Match Deposits: Compare each deposit on the bank statement with the deposits recorded in the ledger. Ensure all deposits are recorded and accurate. 2. Match Withdrawals: Compare each withdrawal (checks, electronic transfers, fees) on the bank statement with the withdrawals in the ledger. 3. Highlight any items that appear on the bank statement but not in the ledger or vice versa.
Step 3: Identify and Investigate Discrepancies 1. Unrecorded Transactions: Identify any bank transactions (e.g., bank fees, interest earned) not recorded in the ledger and prepare to adjust the ledger. 2. Timing Differences: Identify any timing differences, such as outstanding checks (issued but not yet cleared) and deposits in transit (recorded in the ledger but not yet reflected in the bank statement). 3. Investigate any unusual transactions or discrepancies and consult with relevant personnel to determine the cause.
Step 4: Adjust the General Ledger 1. Adjust the ledger for any errors identified (e.g., incorrect amounts, misclassified transactions) or previously identified missing transactions. 2. Ensure that all adjustments are documented and approved by the Assistant Superintendent for Business.
8
Step 5: Prepare the Reconciliation Statement 1. Create a reconciliation statement using the following format: o
Starting balance from the bank statement.
o
Deposits in Transit: Deposits recorded in the ledger but not on the bank statement.
o
Outstanding Checks: Checks recorded in the ledger but not yet cleared by the bank.
o
Result of the above calculations.
o
Balance from the general ledger after adjustments.
o
The difference between the adjusted bank balance and the ledger balance (should be zero).
2. If there is no difference, the reconciliation is complete. If there is a difference, recheck the figures and resolve any issues. o
Review the supporting information packets as well as the expense report or receipts journal to identify any needed adjustments.
Step 6: Review and Approve the Reconciliation 1. Submit the completed reconciliation statement to the Assistant Superintendent for review. 2. The Assistant Superintendent should review all supporting documentation, adjustments, and the reconciliation statement to ensure accuracy. 3. Once reviewed, the Assistant Superintendent will sign off on the reconciliation. Any unresolved discrepancies should be documented and explained.
9
6. Handling Discrepancies Common Discrepancies and How to Address Them 1. Outstanding Checks: Ensure checks issued have not been cashed yet. Follow up with vendors if checks are outstanding for more than 30 days. 2. Deposits in Transit: Confirm that deposits recorded in the ledger but not in the bank statement were made close to the end of the reconciliation period. 3. Bank Errors: If the bank has made an error, contact the bank immediately to resolve the issue.
Escalation Procedures 1. If discrepancies cannot be resolved, escalate the issue to the Assistant Superintendent. 2. If the Assistant Superintendent cannot resolve the issue, an internal auditor may be consulted for further investigation.
7. Documentation and Record Retention 1. All reconciliation reports, bank statements, and supporting documents must be retained for a board approved span of years. 2. Reconciliation documents should be filed and stored securely, accessible only to authorized personnel. o While Treasurer’s Reports highlight account or fund totals may be made public, supporting documents used to develop the reconciliation should not be published publicly as a standard operating procedure without safeguarding sensitive information they may contain first.
8. Frequency and Deadlines 1. Bank reconciliations must be completed monthly. o Currently there is no set board required timeline for completion of the reconciliation reports, however they are completed by the end of the subsequent month as a matter of practice. 2. Any delay in completing reconciliations should be reported to the Assistant Superintendent with reasons for the delay.
10
9. Internal Controls and Segregation of Duties 1. The individual performing the reconciliation typically should not be the same person responsible for recording transactions or handling cash. o Consideration should be made to ensure journal entries or other activities that can alter the GL should not be able to be solely entered by the preparer. 2. The completed reconciliation should be reviewed and approved by the Assistant Superintendent and then presented before the Board of Education
11
Cash Receipts and Accounts Receivable Table of Contents 1. 2. 3. 4.
Introduction Scope Roles and Responsibilities Cash Receipts Procedures o 4.1. Accepting Cash Receipts o 4.2. Recording Cash Receipts o 4.3. Depositing Cash Receipts o 4.4. Reconciling Cash Receipts
1. Introduction The purpose of this section is to outline the steps and controls for handling cash receipts and accounts receivable accurately and effectively. Proper cash receipts accounting and timely invoicing is necessary for safeguarding District funds and providing accurate and up-to-date information on current receivables.
2. Scope This manual applies to all District staff involved in the handling, recording, and depositing of all funds presented, paid, or awarded to the District through the course of its regular operations or through infrequent or irregular payments or donations.
3. Roles and Responsibilities
Responsible for delegating authority for managing cash receipts and accounts receivable as well as accepting gifts, donations, grants, and bequests to the District
Maintains custody of the District funds in accordance with state laws and District policy 5210: Revenues and is responsible for preparing and signing off on Treasurer’s Receipts
Responsible for depositing all incoming cash and check deposits for the District and bringing funds to the bank
12
4. Cash Receipts Procedures 4.1. Accepting Cash Receipts 1. Verification of Payment Method: Accept cash, checks, or electronic payments. For invoiced amounts, method of payment should be detailed and clear. 2. Identification: Request identification for significant transactions (e.g., over $500). 3. Receipts: Prepare a Treasurer’s Receipt for every transaction, detailing the amount, date, and purpose. A copy should aways be provided to individuals who donated funds to the District or relinquished should a invoiced individual or entity request a receipt of payment.
4.2. Recording Cash Receipts 1. Immediate Entry: Prior to funds being given to the District courier, a record of funds received by the District should be recorded on a pre-numerated manual log by an individual other than the District Treasurer and should note the following: o
Date
o
Amount
o
Payer’s Name
o
Purpose of Payment
2. Treasurer’s Receipt CR Journal Preparation: The Treasurer will use the returned bank receipt, initial cash log, invoice reconciliation by number and date if applicable, and any additional documents to prepare a Treasurer’s Receipt and a corresponding entry detailing all of the information in the Cash Receipts Journal. The journal number should correspond to that present on the receipt.
4.3. Depositing Cash Receipts 1. Daily Deposits: Deposit cash receipts daily or as needed, based on the volume of transactions. 2. Preparation of Deposit Slip: Complete a bank deposit slip listing all cash and checks to be deposited. The deposit slip should be prepared by the Treasurer and a copy should be retained as support for the deposit. 3. Reconciliation: The deposit slip should agree to the total prepared on the initial cash received log. 4. Courier Deposit: The district courier will deposit the funds to the bank and relinquish to the Treasurer the bank receipt recording the deposit.
4.4. Reconciling Cash Receipts
13
1. Monthly Reconciliation: Perform a monthly reconciliation of cash receipts against bank statements. This should be preformed as part of the bank reconciliation process. 2. Discrepancies: Investigate any discrepancies immediately and document findings. 3. Segregation of Duties: Ensure different individuals handle cash receipts and accounts receivable.
14
Procurement and Bid Procedures Table of Contents 1. Introduction 2. Roles and Responsibilities 3. Competitive Bidding Requirements o 3.1. Principals o 3.2. Accountability o 3.3. Competitive Bidding Requirements 4. Procurement Methods o 4.1. Formal Sealed Bidding o 4.2. Request for Proposals (RFP) o 4.3. Quotes for Small Purchases 5. Procurement Process Overview 6. Vendor Selection and Evaluation 7. Exceptions to Competitive Bidding 8. Purchasing Ethics and Conflicts of Interest
1. Introduction The purpose of this section is to outline the steps and controls in District’s procurement process as well as the processing and controls for handling outgoing checks and other cash disbursements. Procurement in New York State local government is governed by General Municipal Law (GML), New York State Finance Law, and New York State Education Law which outlines the procedures for purchasing goods, services, and public works. In addition to GML, the District utilizes policy 5410 and 5411 to provide further guidance for purchases under state thresholds.
2. Roles and Responsibilities
Empowers Purchasing Official to authorize purchases for the district on their behalf. It is directly involved with awarding bids for large purchases out with Requests For Proposals (RFPs)
District employee seeking the good/service; responsible for obtaining quotes for small purchases and preparing information for Purchase Orders (PO) by filling out the initial requisition form
Building Principal/ Department Head: Reviews information transmitted to them from the requestor to the building secretary and approves the request.
Reviews approved requisition forms and finalizes them for issuance; forwards the final PO to the Purchasing Official
15
Responsible for reviewing all PO Requests, ensuring they are within budget and properly filled out, and responsible for ensuring compliance with procurement policies and that quotes/contracts are valid. Authorizes the requestor to enter into the agreement for goods and services and authorizes the purchase.
Oversees the entire procurement and cash disbursement process.
3. Procurement Standards and Objectives 3.1. Principles 1. Assure the prudent and economical use of public money in the best interests of the taxpayer. 2. Facilitate the acquisition of goods and services of maximum quality at the lowest possible cost under the circumstances; and 3. Guard against favoritism, improvidence, extravagance, fraud, and corruption.
3.2. Applicability 1. These procedures apply to the procurement of: o Goods: Materials, supplies, or equipment. o Services: Professional services and consulting. o Public Works: Construction, maintenance, and improvements of infrastructure.
3.3. Competitive Bidding Requirements 1. Under GML 104, local governments must engage in competitive bidding when purchases exceed certain dollar thresholds: o $20,000 or more for the purchase of goods o $35,000 or more for public works contracts 2. Competitive bidding is required unless an exception applies (see Section 8 for exceptions). The District is required to comply with this requirement as a public organization in New York.
16
4. Procurement Methods 4.1. Formal Sealed Bidding 1.
Required for purchases and public works contracts exceeding the thresholds ($20,000 for goods; $35,000 for public works).
2.
o
Issuing an Invitation for Bids (IFB): The notice is publicly advertised, including in official newspapers, websites, or other appropriate platforms.
o
Bidders submit sealed bids by a specified deadline.
o
Bids are publicly opened at a set time and location.
o
Contracts are awarded to the lowest responsible bidder whose bid meets all specifications.
4.2. Request for Proposals (RFP) 1.
Used primarily for services that cannot be procured solely based on price, such as professional services (e.g., legal, engineering, consulting).
2.
o
Outline the scope of work, evaluation criteria, and submission deadlines.
o
Notify potential vendors and advertise in official channels.
o
Evaluate based on multiple factors (e.g., qualifications, experience, approach, and cost).
o
Contracts are awarded based on best value, not necessarily the lowest bid.
4.3. Quotes for Small Purchases 1.
2.
For procurements below the bidding threshold, competitive quotes must be obtained where practical: o
Under $20,000 for goods/services and $35,000 for public works.
o
Under policy 5411, purchasing authority for goods under the state mandated thresholds rests solely with the District’s appointed purchasing agent. However, it is noted that beyond ensuring best economic use and safeguarding against fraud, favoritism and other factors, the Board notes it will develop regulation to guide this process, but it is not incorporated as an addendum to the specific policy.
Good faith efforts to solicit multiple quotes should be employed and if multiple quotes are unable to be attained, documentation noting the attempt was made and multiple quotes were unable to be received.
17
3.
Requestors and building principals should make every effort to remain in compliance with requests for purchases and should ensure all documentation is provided for purchases which fall under GML thresholds and require the Purchasing Official’s oversight.
5. Procurement Process Overview 1. Identify Need: Department identifies the need for goods, services, or works. 2. Authorization: The requisitioner will prepare a purchase request. Requests over the previously stated thresholds require board approval and the issuance of an RFP. 3. Solicit Bids/Proposals/Quotes: Based on the value and nature of the purchase, the Purchasing Agent will ensure the appropriate procurement method is utilized based on the requisitioner’s needs (bids, RFP, or quotes). 4. Review and Evaluate: Evaluate all submissions to ensure they meet the criteria set forth in the solicitation. For requests under the thresholds, ensure the appropriate number of quotes are provided. 5. Award Contract or Confirm Quotes: Award the contract to the lowest responsible bidder or best value proposer or affirm emergency/sole source criteria. 6. Issue Purchase Order: A purchase order (PO) must be created for the selected vendor to commence the procurement. Ensure the PO is signed and approved by the Purchasing Agent.
6. Vendor Selection and Evaluation 1. Vendor Selection Criteria Price Quality and compliance with specifications Vendor’s qualifications, experience, and reliability Delivery timelines Previous performance with the government Exceptions to the apparent optimal choice given to each of these criteria should be clearly documented and communicated to the Purchasing Agent and the Claims Auditor for review and are elaborated below.
18
7. Exceptions to Competitive Bidding Certain purchases are exempt from competitive bidding: 1.
Legal, medical, accounting, and engineering services where qualifications, not price, are the determining factor.
2.
When only one vendor is capable of providing the required goods or services.
3.
“Piggybacking” on State Contracts or other NYS Municipalities: The District may use state or cooperative purchasing contracts that have already been competitively bid. o
4.
Per OSC guidance, governments who piggyback off of existing contracts with other organizations should.
Emergency purchases are allowed in cases where there is an urgent need to protect public health, safety, or property.
All exemptions must be justified and documented with written reasons. Sole Source acquisitions should be clearly attested and, if need be, certified and attested by District management.
8. Purchasing Ethics and Conflicts of Interest Ethical Standards 1.
All Board Members and employees involved in procurement must adhere to the highest ethical standards, ensuring fairness and avoiding favoritism.
2.
Board Members and employees must disclose any potential conflict of interest in the procurement process, including relationships with vendors.
3.
No Board member or employee should have an interest in the procurement of goods or services except as authorized by law.
19
Cash Disbursements and Check Issuance Table of Contents 1. Introduction 2. Roles and Responsibilities 3. Cash Disbursement Procedures o 3.1. Requesting Cash Disbursements o 3.2. Approval Process o 3.3. Preparing Checks o 3.4. Recording Transactions
1. Introduction The purpose of this section is to outline the steps and controls required for handling outgoing checks and other cash disbursements. It aims to ensure that all disbursements are conducted in a controlled, accurate, and accountable manner with proper documentation and authorization.
2. Roles and Responsibilities
Oversees cash disbursement policies and ensures compliance with regulations, processes cash disbursement requests and prepares checks.
Responsible for transmitting confirmation of the completed order to the Accounts Payable Clerk
Review all expenditures by the district prior to issuing checks to payees. Required to review all supporting documents, ensure POs are created orderly, and that invoices and receipts are accurate and reflect totals intended to be paid.
Releases final approved checks to vendors.
Oversees the entire procurement and cash disbursement process.
Reviews reports from the Assistant Superintendent and the Claims Auditor ensuring proper compliance and safeguarding of taxpayer funds in District’s best interests.
20
3. Cash Disbursement Procedures 3.1. Requesting Cash Disbursements 1. See Procurement Process Manual for Details on Procurerement Procedures and initial requests. 2. Once the Purchasing Official approves the completed Purchase Order, the Accounts Payables Clerk will issue the PO to the vendor and requestor and indicate to the requester they are authorized to make the purchase.
3.2. Approval Process 1. The issuance of a final PO represents all the required initial approvals to enter into an agreement to procure goods, however it does not have the authorization to pay for the goods. 2. Once the goods/services have been rendered and the requestor’s needs fulfilled, an invoice or receipt is requested for the work performed. 3. The Requestor then fills out the Approval Copy of the PO and note’s the orders status, and initials and dates that the PO is ready to be paid. 4. The completed PO is sent with the invoice and other support to the Accounts Payable Clerk to be reviewed and entered onto the Warrant for the next check run. 5. Once the checks are cut, the Claims Auditor then reviews the entire expenditure to ensure accuracy and correctness in compliance with policy 1335 and provides final authorization that the checks are ready to be sent to the vendors. The warrant is then approved and ready to have checks issued.
3.3. Preparing Checks 1. Check Preparation: Once approved, the vendor’s information and check number are used to prepare for the check to be issued. 2. Check Details: Ensure the following details are accurately included: o
Payee name
o
Amount (both in numbers and words)
o
Date
o
Purpose of the disbursement
o
Account code
21
3.4. Recording Transactions 1. Transaction Entry: Ensure all disbursements are accurately entered into the accounting system prior to issuance of checks. 2. Documentation: Maintain all supporting documents (invoices, approvals) in an organized manner for audit purposes. 3. Reconciliation: Conduct monthly reconciliations of cash disbursement records with bank statements. Consult the Bank Reconciliation Procedures Manual for more information and steps to perform this process accurately.
22
Payroll and Employee On-Boarding/ OffBoarding Table of Contents 1. Introduction 2. Roles and Responsibilities 3. Payroll Procedures o 3.1. Employee Setup o 3.2. Timekeeping o 3.3. Payroll Calculation o 3.4. Payroll Distribution o 3.5. Payroll Reporting 4. Employee Terminations
1. Introduction The purpose of this section is to outline the steps and controls for handling payroll in the District and ensure accurate, timely, and compliant payroll processing for all employees and to minimize risks of fraud or other errors.
2. Roles and Responsibilities
Oversees payroll processes and compliance with employment laws, processes payroll, verifies deductions are appropriately entered.
Handles employee onboarding, retrieval of W4 and I9, managing employee records, communicating terminations and retirements to the payroll clerk.
Department Heads & Supervisors: Ensure accurate timekeeping and reporting for their departments and subordinates.
Reviews payroll reports and oversees budget impacts.
Approves all new hires and authorizes pay rates for employees.
23
3. Payroll Procedures 3.1. Employee Setup 1. Board Approval and Initial Agreement: Prospective employees undergo pre hiring processes, including: o
Interview with planned department head or supervisor as well as with a member of District management after successful application in Frontline
o
Required approval and authorization from the Board of Education following successful meeting with Assistant Superintendent of HR
o
Acceptance of job offer.
o
Fingerprinting prior to beginning work.
2. Hiring Documentation: Collect and verify new hire documentation, including: o
W-4 forms for tax withholding
o
I-9 forms for employment eligibility
o
Direct deposit information
o
If applicable union contract information
o
Insurance and other voluntary deductions have appropriate employee approval and records retained.
3. Employee Profiles: Create employee profiles in the payroll system, including: o
Employee ID
o
Job title
o
Pay rate
o
Deductions
o
Tax status
3.2. Timekeeping 1. Timekeeping System: Electronic timecards are required to be filled out by all approved hourly personnel and provided to supervisor for payment during period. 2. Time Entry: Employees must submit time worked weekly, including: o
Hours worked (regular and overtime)
o
Leave taken (sick, vacation, etc.)
3. Approval Process: Department heads must review and approve submitted timecards by the deadline as well as note any inconsistencies or missing/misreported hours to business office.
24
3.3. Payroll Calculation 1. Data Input: Input approved timecards into the payroll system (Paychex). 2. Calculating Gross Pay: o
Calculate regular hours and overtime.
o
Factor in any bonuses or adjustments as dictated by the board directly or through board approved union contracts.
3. Deductions: o
Calculate mandatory deductions (federal and state taxes, Social Security, Medicare).
o
Include voluntary deductions (health insurance, retirement contributions).
4. Net Pay Calculation: Subtract total deductions from gross pay to determine net pay. o
Automatically calculated by the District payroll software but should be reviewed on a periodic basis to ensure correct calculations.
3.4. Payroll Distribution 1. Payroll Schedule: Ensure all payroll information is entered and processed in time for the semi-monthly pay schedule of the District. 2. Disbursement Methods: Offer employees options for payroll distribution: o
Direct deposit (recommended)
o
Printed checks
3. Pay Stub Distribution: Provide employees with pay stubs detailing gross pay, deductions, and net pay. Ensure duplicate documentation is maintained by the district.
3.5. Payroll Reporting 1. Semi-Monthly Reports: Generate payroll reports twice a month to be reviewed and certified by the Assistant Superintendent and presented to the board, including: o
Total payroll expenses
o
Breakdown of taxes and deductions
2. Quarterly Reports: Prepare and submit required tax filings (e.g., IRS Form 941). 3. Year-End Reporting: Prepare W-2 forms for employees and submit necessary reports to tax authorities.
25
4. Employee Terminations 1. Once initial conversations regarding any shortcomings, conduct, or intent to resign or retire are had with the Assistant Superintendent for HR and the employee in accordance with what is required under the employee’s collective bargaining unit, the District: o
Deactivates the employee in the HR system.
o
Payroll recalculates their total salaried owed and ensures the employee is not over or underpaid for their final paycheck.
o
HR informs IT of the termination, and all badge access, email, and related accounts are immediately deactivated, and access is restricted.
o
Physical keys and badges are collected by HR and IT on site at the time of resignation/termination.
2. Retirees who intend to continue working part time with the District may retain some access rights at retirement as needed for their new position.
26
Extraclassroom Activity Fund Table of Contents 1. 2. 3. 4. 5. 6.
Introduction Responsibilities Required Documentation for Internal Controls Basic Principles and Guidelines for ECA Procedures Sales Tax Charter Schools
1. Introduction The purpose of this section is to outline the steps and controls required in managing, organizing, and regulating Extraclassroom activities (ECAs). Proper monitoring and managing of ECA funds are essential in ensuring that the main purpose of these activities is achieved, which is to give students the opportunity to learn proper business practices and how to operate a successful business.
2. Responsibilities
Has custody of all ECA funds, oversees the use of said funds, maintenance of records for transactions, and reporting of financial activities on a regular basis.
Reviews and verifies that records match with transactions, investigating any discrepancies noted.
Coordinates the financial planning of the pupil organizations. Typically, the building principle in which the activity is occurring in.
Guides and advises pupil officers in planning Extraclassroom activities and financial budgets, and in keeping of financial records of transactions.
Receives all the money earned by their pupil organization through Extraclassroom activities and deposit those with the central treasurer.
Performs an annual audit of all School District finances, including ECA funds.
27
3. Required Documentation for Internal Controls 1.
Record for tracking all cash activities.
2.
Record for tracking the chronological order of receipts, which includes date of receipt, from whom the money was received, receipt number, amount, and activity credited.
3.
Record for tracking the chronological order of receipts, which includes date of payment, person receiving payment, check number, amount, and activity to be charged.
4.
Document used for tracking of deposits made by Activity Treasurers with the Central Treasurer.
5.
Document that summarizes all sales and disbursements of an activity.
6.
Document that is issued by the Central Treasurer for all money received from deposits made by Activity Treasurers.
7.
Document issued by Activity Treasurers for acknowledging receipt of money.
8.
Document used whenever withdrawals or payments are to be made, where the amount must be validated and signed by the Student Treasurer, Faculty Advisor, and Chief Faculty Counselor and presented to the ECA Central Treasurer.
9.
Report on Reconciliation of Cash Balances: Report prepared for verifying that the organization’s cash records are aligned with bank statements.
10. Central
Activity ledgers separately maintained by the ECA Treasurer and the Club Treasurer and Advisor. Each should contain the totals, dates, and descriptions of all fiscal activities of each club and are reconcilable to each other and the bank statement.
11. Central Treasurer’s Report: Document that summarizes all activities of various pupil
organizations, along with their total receipts and disbursements for a specific period.
28
4. Basic Principles and Guidelines for ECA Procedures 1.
Handling of Funds o
ECA funds are obtained from various activities, such as sales, admissions, membership dues, and donations.
o
The Central Treasurers should be preparing a monthly report detailing all disbursements and receipts to be provided to the Business office and subsequently the Board including a reconciliation of accounts to the bank statements.
o
Inventory on hand must be safeguarded against loss, theft, or damage by storing them in a secure location with restricted access.
o
Donations should generally be made in lump sum and be accounted for in minutes of the activity. Consequently, the Activity Treasurer should issue a receipt to the donor and deposit funds received with the Central Treasurer.
2.
3.
Inventory forms shall also be used for tracking sales, purchases, transfers, and other inventory movements.
Exceptions for small dollar fundraisers such as coin drops and other donations under a specified monetary threshold as determined by the Business Office are considered.
Deposits and Cash Receipts o
All funds received by the club or student activity must be verified by the student treasurer as well as the faculty advisor.
o
The Student Treasurer will fill out the Internal District deposit slip and both them and the Faculty Advisor will sign off and date the form and present it and sufficient meeting minutes or relevant support to the ECA Treasurer
o
The ECA Treasurer will compile and double check the deposit totals, prepare the funds for deposit with a deposit slip in triplicate in the bank through the District courier.
o
Once a bank receipt has been obtained, a Central Treasurer’s Receipt is initialed and the relevant journal entry corresponding to the deposit is noted.
o
The entry is also then recorded in the club ledger and filed with the supporting documentation by both the treasurer and the faculty advisor.
Purchasing and Payables o
The Extraclassroom clubs hold the authorizing power to disperse funds held in trust by the ECA Central Treasurer and overseen by the Board.
o
The Students collectively shall vote or otherwise authorize the Student Treasurer or the Faculty Advisor to make a purchase on behalf of the club and document it in its meeting minutes.
o
A payment order to the Central Treasurer should then be filled out with the total amount requested, the payee, and the club the funds are sourced from and dated and
29
certified by the Student Treasurer, Faculty Advisor, and the Chief Faculty Counselor o
In addition, the Student Treasurer will provide the relevant invoice/receipt as dedicated support towards the purchase
o
The ECA Treasurer will verify the totals, ensure the payment was duly authorized and reflected in the support , and cut the check to the relevant party.
o 4.
The Payment Order will then be initialed and updated to note the purchase order number if applicable and check number and journal entry by the ECA treasurer.
A copy of the complete payment order should then be kept with the club as well as copies of the invoice and relevant supporting documents for the disbursement.
Closing Out of Inactive Account o
The ECA Central Treasurer should continuously monitor clubs and Extraclassroom activities and ensure that all clubs with available funds are aware of their current totals and are available to be spent if need be.
o
Should a club operate for multiple years without any fiscal activities occurring, the ECA Treasurer should consult with the Faculty Advisor and Student Treasurer to discuss if funds are still required or if any remaining funds should be reallocated to the Student Government and financial privileges removed.
o
If a club does not have a consistent Faculty Advisor for multiple years or the club is not run for multiple years, similarly funds should be reallocated to the Student Government
30
5. Sales Tax o
Per NYSED, School districts are not exempt from the provisions of Sales Tax whenever they become the vendor of goods or services to private entities.
o
This occurs in the course of most school organization fundraisers or financial transactions where clubs are selling a good or service.
It is the faculty-advisor’s responsibility to determine which activities undertaken by an organization are subject to sales tax and ensure that all tax information is properly recorded and submitted to the central treasurer.
Please see the attached appendix from the NYSED “SAFEGUARDING, ACCOUNTING, AND AUDITING OF EXTRACLASSROOM ACTIVITY FUNDS” handbook for a detailed review of taxable and nontaxable activities
o
If a district regularly conducts fundraising activities involving resale of goods, the district should register with the New York State Department of Taxation and Finance as a vendor.
o
By registering as a vendor, the district will receive a certificate of authority and the ECA fund may issue resale certificates to its suppliers to make tax-free purchases for student organizations provided such items are for resale.
o
The student organizations are still required to collect taxes on taxable sales, and file tax returns with corresponding tax payments if any to the Tax Department
o
Student organizations are required to pay sales taxes on all purchases made for the benefit of the club and its members not for the purpose of resale.
31
Sales Tax Guide Sale of Candy, Soda and Soft Drinks
Taxable, except for certain drinks.
Spaghetti dinners and catered meals TB-ST-806
Taxable
Bake Sales TB-ST-103
Non-Taxable.
Food Items TB-ST-280 Pizza, Chicken, Popcorn, Coffee, Tea, etc. TB-ST-806 Admission Charges TSB-M-06(15)S
Taxable, generally.
Sale of Newspapers and Magazines Sale of shrubs, plants and trees Sale of Yearbook TSB-A-08(42)
Non-Taxable.
Sale of Yearbook Advertising Space Sale of Sweatshirts, Tshirts, Jackets, Jewelry Book Store Sales Pre-packaged Popcorn, Potato Chips, Pretzels Hair Cuts and Styling Repair/Maintenance Services, Car Washes
Non-Taxable.
Taxable.
Taxable, except for certain events.
Tax Law §1115(a) (1) generally provides an exemption for the sales and purchases of food, food products, beverages sold for human consumption. However, the exemption does not apply to candy, sodas or soft drinks, and fruit drinks that contain less than 70% natural fruit juice. Tax Law §1115(a) (1) generally provides an exemption for the sales and purchases of food, food products, beverages sold for human consumption. However, the exemption does not apply to catered situations, where the students of the club would be serving, assisting in serving, cooking, or otherwise providing services with respect to the food items in question. Tax Law §1115(a) (1) generally provides an exemption for the sales and purchases of food, food products, beverages sold for human consumption. This provision exempts bake sales from the collection of sales tax. Where tables, chairs, benches, etc. are provided where the vending machine operations are conducted, the sales through the vending machine are taxable. Where no eating facilities are provided, the sales are exempt from sales tax. All sales of prepared food sold in a heated state (where the food is maintained at a temperature warmer than surrounding air temperature) are subject to sales tax, including those sold for off-premises consumption. Exemption is provided from sales tax for admissions to dramatic or musical arts performances, which do not include variety shows, magic shows, circuses, ice shows, dances, and similar performances. Included in the exemption is an admission charge to choreographed performances to music, which may exempt color guard admissions.
Taxable. Taxable, generally.
Taxable. Taxable. Non-Taxable, generally Non-Taxable. Taxable, generally.
If the entire cost of the yearbook is underwritten by the Board of Education and the revenue is recognized as a General Fund item, the sale becomes an exempt transaction, not subject to sales tax.
Tax Law §1105(a) provides that sales tax is imposed on the sale of tangible personal property. Unless specifically exempt. When packaged and sold in a cold state, prepackaged snack foods are exempt. This exemption does not apply to caramel or other candy coated snack foods. The cutting and styling of hairpieces is not included in this exemption. An exemption is provided for the repair, maintenance or service of farm machinery.
* Organizations which qualify as tax exempt under Publication 843 may use examples listed in that document as a guide to taxable sales.
32
Current District Positions 2025-2026 Management and Oversight Board of Education: Janice Richardson – President, Linda Dioguardi – Vice President, Carole Barnabas, Maria Cortes, Michele Lowes, Jeffrey McCaffrey, David Metzger Superintendent: Brian Neenan Assistant Superintendent for Business: Brian Freeman Assistant Superintendent for HR: Dave Swinson
Business Office Staff District Treasurer: Lori Schreiber Purchasing Officer: Ashley DiLorenzo Accounts Payable Clerk: Shari Vernetti Payroll Supervisor: Kate Ferruzza
Extraclassroom Activities ECA Central Treasurer: Nancy Buckley – Willink MS, Lisa Henderson – Spry MS, Trish Belles – Schroder HS, Beverly Neu – Thomas HS Building Principals: Brian Powers – Willink MS, Christopher Callahan – Spry MS, Paul Benz – Schroder HS, Glenn Widor – Thomas HS
33