The district uses authorized bank and investment accounts to pay its obligations (accounts payable and payroll), while at the same time, provide for investment earnings on idle cash. Electronic transfer of funds between these accounts should use the following procedures:
1. A record of all electronic funds shall be kept and periodic reports be provided to the Board of Education and district Audit Committee. This may be done by reporting through electronic e-mail or included in regular meetings. The report may be something as simple as providing an actual copy of bank and investment account statements. All electronic transfers shall be reported to both the Board & Audit Committee.
2. The report shall include the following:
Date
Amount
Purpose of transfer
Name of requester and individual authorizing the transfer
3. The Board and Audit Committee may request copies of bank and investment account statements to verify the transfers on the transfer report.
4. Authorization & Notification--Transfers from PTIF Account(s) to Main Checking Account. These transfers are done to ensure sufficient cash balances are in place to cover payments from the district's main checking account--i.e. payroll and accounts payable. There must be two individuals who authorize the transfer of funds--1) the person who is making the request and processing the transactions in the accounting system, and 2) an authorizing administrator. At least one of the following administrators shall authorize each transfer, and the authorizations (signatures) must be documented. The authorization may be verified by an actual signature or e-mail from the administrator. The authorization must include a comparison of the amount being requested in conjunction with a report being generated from the accounting system that validates the amount--i.e. accounts payable check run report, payroll check run report, cash receipts/deposits report, etc. Notification of each transfer must be given to the Business Administrator, Superintendent, and Board President; notification can be accomplished using electronic mail if needed. Any one of the following individuals may serve as an authorizing administrator:
Business Administrator
Superintendent
Board President
5. Authorization & Notification--Transfers from Main Checking Account to PTIF Accounts. These transfers are done to move deposits made in the checking account to PTIF investment accounts where interest earnings can occur. These transfers may be done by the Business Administrator, but the Business Administrator must notify the Superintendent and Board President of the transfers. Notification can be done using electronic mail if needed.
6. Electronic Transfer Processing. The Business Administrator or one other district office designee (separate from primary accounts payable and payroll function personnel) are authorized to process electronic cash transfers with financial institutions after proper authorization has been obtained. The person processing the transfer with the financial institution(s) shall obtain documentation of the transfer request with the financial institution(s), and the documentation shall be obtained with the appropriate accounting records. The person who is processing the transfer with financial institution(s) shall also communicate the planned date of the transfer with internal personnel to ensure account balances are not overdrawn.