FINANCIAL MANAGEMENT FOR - Georgia Department of …财务管理部-格鲁吉亚….docVIP

FINANCIAL MANAGEMENT FOR GEORGIA LOCAL UNITS OF ADMINISTRATION Date Issued Effective Date Section Title: August 2008 August 2008 II Financial Reporting Revision No. Date Revised Chapter Title: N/A N/A 43 School Activity Accounts (Principal Accounts) HISTORY Most school districts have cash funds or bank accounts at individual schools under the control of school principals or club advisors. In the past, these funds may have been excluded from the districts level financial statements and accounting controls. These funds present a unique control challenge to school districts given their decentralized nature and the production of financial records and reports by non-accounting personnel. Historically, little attention has been given to accounting for activity funds in school districts. The nature of activity funds, however, makes them especially vulnerable to error, misuse, and fraud. In addition, activity funds often total to large sums of money, especially when capturing the amounts that flow through an educational organization in the form of school board funds, student-generated funds, receipts and disbursements related to athletics, and the myriad co-curricular and extracurricular events sponsored by school districts. As a result, policies and procedures for improving controls over these funds and to promote the capturing all student activity-related monies in the districts financial records should be implemented. Georgia law recognizes the importance of School Activity Accounts by requiring the following: OCGA 20-2-962. Quarterly Reports by principals; audits by local boards. The principal of each public school shall make a quarterly report to the local board of education immediately upon the end of each quarter of the fiscal year, and such report shall contain an account of all receipts and expenditures of such funds during the past quarter. The principal shall also make an annual report of the complet