Page 26 - The Edge - BTS 2021

Tips on Handling Cash from Fundraisers, Student Activities

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items, and logs were created for distributing good enough because procedures change.
cards or items to students. Finally, weekly cash
collections are mandatory.” Questions to consider: What types of activities
does the district collect funds for; what methods of
In addition, budgets are required and the purpose payment will be accepted; what are the collection
of the fundraiser must be clear and it must be points; how frequently; who is doing the collecting;
for the benefit of current students, McGovern and what is the fundraiser for?
said. It’s also vital to have the support of the
district administration for any fundraisers. Kirk emphasized: “Accountability must be
maintained. Monies should not be placed in
Looking to the future, McGovern sees a shift the drawer until the transaction is completed.
from cash collections to electronic payments. The register drawer should be closed between
He mentioned the pros and cons. The pros are – transactions. Establish a limit for the amount that
there is no cash to worry about, paper receipts can be in the register at one time. Also, ensure the
are not collected, the ease of payment collection, district has controls in place over the processing
and it saves time. of register voids. Is management reviewing the
frequency and nature of voids for each cashier?”
One of the cons is the additional fees. “Who
pays for credit card transactions? McGovern For the process of cash handling, Kirk strongly
said. He quickly added: “Not the students.” recommended that “different individuals should
handle each of the key responsibilities.” She said
Also, there is the possibility of cyber crime, so the various steps include receiving, cashiering and
new controls need to be established. Another counting cash; counting of cash in comparison

problem may involve hybrid collections. to initial cash count; making a cash deposit; and
McGovern said they can be confusing if, for finally comparing cash deposits recorded in the
example, someone buys a $20 card, but pays general ledger to deposit amounts appearing on
more for it, with the additional money considered copies of the cash collection forms and deposit
a gift. That’s part fundraising and part donation. slips.

Kirk provided AASBO members with what she “Operating and accounting functions should be
called tips and reminders for handling cash. She separated so one employee does not have both
recommended establishing solid processes and recordkeeping and custodial duties,” Kirk said.
procedures before having a training program. “In small organization where limited personnel
prohibit such segregation of duties, school
“The best practice is to train all employees at management should review the work of employees
the beginning of each school year,” Kirk said. performing both duties. A lot is common sense –
“Consider recording an on-demand webinar for separation of duties.”
employees to review as they come on board
throughout the year.” Sara Kirk can be reached at: sara.kirk@heinfeldmeech.com
It should be targeted training specific to Kenneth McGovern can be reached at: kenneth.mcgovern@
cafeteria, student activities, etc. If an employee svps.k12.az.us
says they took the training years ago, that’s not

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26 THE EDGE BACK TO SCHOOL 2021