Policies and Regulations NEPN Code: DIA-R

Fiscal Management
Accounting System
Trust and Agency Funds

Fiscal Management Accounting System Trust and Agency Funds All schools involved in collecting monies from students will establish a Trust and Agency Fund. Within the Trust and Agency Fund there may be established separate trust or agency accounts. All monies collected within the school shall be deposited to this fund’s appropriate account and disbursed by check according to established procedure. The only exceptions to this requirement are funds collected for approved outside organizations, approved events and the school cafeteria. The cafeteria receipts will be administered by the Child Nutrition Supervisor. Examples of outside organizations are school insurance and PTA dues. Each year the principal shall present to the Finance Office for approval a list of outside organizations and events for which building staff collect money but do not deposit the funds into the Trust and Agency Fund. Unless the outside organization and event is on this approved list, in no case will School District staff collect money from students, parents, or the general public and not deposit these funds into either a Trust and Agency Fund or the appropriate District fund.

Trust funds are monies held in trust for student or unincorporated parent clubs, or for collecting and making donations on behalf of a group or an individual. Student clubs have a faculty advisor. The monies are raised through various fund raising activities by the students, and decisions on how the money is spent are made primarily by the club. Any expenditure made from a club trust account must be authorized by the school principal and designated officer of the club.

Agency funds serve as clearing accounts before the monies are deposited into the proper District fund. No program expenditure shall be made out of an agency fund. However, costs associated with fund raising activities shall be from agency funds. The Business Manager or designee will identify which sub-funds are trust funds and which are agency funds.

The Trust and Agency Fund is to be set up and administered according to the following procedures.

  1. The School Board shall appoint a principal, faculty member, or other designated employee, as treasurer of the Trust and Agency Fund. An assistant treasurer may be appointed to carry on business in the absence of the treasurer. All references to the treasurer are binding upon the assistant treasurer. The treasurer shall be responsible for the proper care, handling and accounting for the fund, as required by law.
  2. The treasurer shall be bonded by the District as required by law.
  3. The Board shall authorize a depository for the fund, and the treasurer shall be authorized to establish a checking account in the authorized depository.
  4. The treasurer shall issue pre-numbered checks in payment of approved vouchers.
  5. The treasurer upon receipt of any money shall prepare a pre-numbered receipt in duplicate. Any money received shall be deposited in the authorized depository and recorded in the proper account.
  6. Funds should not be permitted to accumulate in the respective buildings in any amount greater than is needed for day-to-day operation.
  7. The fiscal year for Trust and Agency Funds shall begin on July 1 and end June 30.
  8. The Board shall authorize the Business Manager to establish the accounting procedures and forms that shall be used in conjunction with the operation of the fund.
  9. The overall fiscal policy shall be as follows:
    1. The principal shall be responsible for establishing accounts as he/she deems necessary within the fund.
    2. The principal shall be responsible for the approval of all purchases. A voucher to which invoices and statements have been attached shall support payment. Payments by the treasurer are contingent upon the receipt of a voucher that has been signed by a faculty advisor and approved by the assistant principal in the absence of the principal.
    3. To prevent accounts from becoming overdrawn, no purchase shall be made unless sufficient funds are on hand in the fund and appropriate account to pay the cost of the purchase. Any commitment which would create a debt in the fund and appropriate account shall be submitted by the Business Manager to the Board for prior authorization.
    4. All purchases of items greater than $1,000 each shall be submitted by the principal to the Business Manager or designee for prior authorization. All purchases of $15,000 or more shall be submitted to the Board for prior authorization.Prior authorization is not required for internal reimbursement of previously authorized expenditures.
    5. All obligations shall be submitted to the treasurer for payment by the end of the fiscal year in which the obligations were incurred.
    6. All receipts from the sale of admissions to athletic events or similar sources shall be reported on an admissions report form and signed by the faculty advisor and chief ticket seller. The report shall be made in duplicate to be filed with the principal and athletic director on the day following the event. NEPN Code: DIA-R Page 3 of 3
    7. The treasurer shall not transfer any money raised for a specific purpose or assigned to a particular account to another account without the approval of the principal. The approval shall be in writing and made a part of the files of the treasurer, subject to audit.
    8. The treasurer shall prepare a monthly financial report when the fund is on a non-suspended basis setting forth the assets and a list of account balances in the fund. Copies shall be filed with the principal and the Business Manager.
    9. The treasurer shall prepare a monthly financial report for the faculty advisor of each account. The report shall show monthly activity of the account and ending account balance.
    10. U.S. bonds or other investments shall be held in the office of the school making the purchase.
    11. With authorization from the principal, the treasurer may make loans from trust and agency funds to the school’s incidental account. All loans shall be reimbursed prior to the end of the fiscal year.
    12. A detailed audit shall be made at the close of each fiscal year by the auditor employed by the Board or by District personnel. Major findings of such audits will be reported to the Board.


Regulation   Board Action (formerly 3410)
Approved: 05-28-68 13052  
Revised: 11-10-86 23098  
Revised: 04-24-95 28044.3i  
Revised: 09-11-00 29683  
Revised: 06-28-04 33860  
Revised: 01-09-06 34304  
Revised: 10-27-08 35198  
Revised: 09-12-11 36163  
Reviewed: 10-10-16 37603