Contents

CHAPTER 20: Independent Activity Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20-1

Guiding Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-1
MCPS Policies and Regulations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-2
Other Important Materials and Links . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-2
Definition of Terms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-2
Contact Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-3
Roles and Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-3
Disbursement of IAF Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-5
Prohibited Disbursements of IAF Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-6
Denial of Reimbursement for Procurements Lacking Prior Approval. . . . . . . . . . . . . . . . . . . . . 20-6
Contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-6
Management of IAF Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-7
Financial Accounting Records and Reports. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-7
IAF Account Structure and Utilization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-10
Business Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-11
Miscellaneous. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-12
Retention, Disposal, and Removal of IAF Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-14
School-Affiliated Organizations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-14
Closing Schools. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-14
Opening Schools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-16
Frequently Asked Questions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-16
Appendix A: Chart of Accounts—EPES and Quicken. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-18
Appendix B: Bank Reconciliation Process—EPES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-25
Appendix C: Chart of Accounts—SFO. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-30
Appendix D: Posting Electronic Payment Receipts—SFO. . . . . . . . . . . . . . . . . . . . . . . . . . 20-35
Appendix E: Recording CIF Transactions—SFO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-37
Appendix F: Visiting Bookkeeper Checklist—SFO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-39
Appendix G: End of Month Checklist—SFO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-41
Appendix H: Guidelines for Student Athlete Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-43
Appendix I: Escheatment Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-45

Financial Manual CHAPTER 20 Independent Activity Funds March 2013

INDEX

CHAPTER 20
Independent Activity Funds
Guiding Principles
The following principles are general guides meant to
direct decision making and actions for administering
the Independent Activity Funds (IAFs) of Montgomery
County Public Schools (MCPS):
• The two basic purposes for raising and disbursing of
IAFs are to promote the general welfare, education,
and morale of students and to finance the recog-
nized extracurricular activities of the student body.
• The IAFs of a school belong to the student body
currently enrolled at the school unless specifically
designated for other ownership.
• The principal is the fiduciary agent for the IAFs
charged with determining the manner in which
funds are raised and expended.
• The principal is responsible for ensuring that IAFs
are administered in accordance with MCPS policies,
regulations, and procedures.
• All procurement of goods and services must adhere
to MCPS policies, regulations, and procedures.
• S
 taff-owned funds may be included in IAFs
provided that separate accounts are maintained
for these purposes. The source of staff social funds
must be derived entirely from staff contributions
and activities.
• Funds derived from the student body as a whole
should be used to benefit the student body as a whole
unless specifically designated prior to being raised.
• Gambling is prohibited at all times in school build-
ings and on school grounds except as permitted by
the Maryland Annotated Code of Criminal Law Title
13, Subtitle 18 with the appropriate licenses and/or
permits. Gambling includes bingo, raffles, and other
games of chance. Schools are discouraged from
using gambling as a means of raising IAF funds.
• The principal approves all school fund-raising activi-
ties conducted by staff and students, as well as those
conducted by organizations representing themselves
as affiliated with the school.
Financial Manual CHAPTER 20 Independent Activity Funds
20–1
• The principal will not approve any IAF fund-raising
activity that is prohibited by law, Board of Educa-
tion policy, MCPS regulation, or the provisions
of this chapter, or any activity that would bring
discredit upon MCPS or the school.
• Prices for field trips, admission events, and other
activities and items should be set whenever pos-
sible at levels that encourage broad participation by
students.
• The principal shall not approve the use of school
facilities and equipment for fund-raising purposes
unless the privilege is available to all school groups.
• The management of IAFs must be in accordance
with good business practices that include sound
accounting procedures and internal controls.
• Principals are encouraged to participate in the prep-
aration, modification, and interpretation of policies
and procedures for administering IAFs. Proposed
suggestions for improvement or clarification of cur-
rent policies and procedures should be forwarded to
the Office of Shared Accountability (OSA).
• Principals will perform a monthly review of IAF
account balances.
• Expenditure of IAF funds may not be used to
duplicate expenditure for similar items provided by
MCPS. For instance, an MCPS employee provided
a Blackberry communication device also may not be
provided a cell phone paid by IAFs.
• Those entrusted with MCPS resources are respon-
sible for establishing and maintaining effective
controls to ensure that programs meet the school’s
goals and objectives.
• Fees assessed to students will be set as nearly as
possible only to offset the costs incurred by MCPS
for the item. They will not be designed to create
profits for a school. That is the purpose of conducting
fund-raising activities. All course-related fees must
be approved by the Office of School Support and
Improvement (OSSI).
March 2013
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20–2
• Th
 e principal will not authorize any procurement
without having sufficient funds available in an
appropriate account to make the disbursement for
payment of the goods or services.
These principles provide a framework for sound deci-
sion making. When unsure of the applicable law, policy,
regulation, or procedure pertaining to an issue, it is
the responsibility of the decision maker to inquire in
advance. A list of contacts is provided for this purpose.
MCPS Policies and Regulations
Policy BBB Ethics
Policy CFB Public Charter Schools
Policy CND School-Related Fund Raising
Policy KBA Policy on Public Information
Regulation ABA-RC Vendors on or Near School
Property
Regulation COF-RA Intoxicants on MCPS Property
Regulation DAA-RB External Audits Requiring Board
of Education Approval
Regulation DIA-RA Accounting for Financial Opera-
tions/Independent Activity
Funds
Regulation DIA-RB  ayments for Personal Ser-
P
vices and Reimbursements for
Expenses from School Indepen-
dent Activity Funds (IAFs)
Regulation DIE-RA Travel for Montgomery County
Public Schools (MCPS) Purposes
Regulation DJA-RB Purchases of Materials and
Equipment using Nonappropri-
ated Funds and Acceptance of
Donated Items
Regulation DMB-RA Control of Admission Receipts
Regulation DNA-RA  isposition of Board of Educa-
D Definition of Terms
tion Property
Regulation ECG-RA Student Driving and Parking
Facilities
Regulation EDC-RA Control of Furniture and Equip-
ment Inventory
Regulation GCA-RA Employee Conflict of Interest
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Regulation GCB-RA Reporting and Handling Fraudu-
lent Actions by MCPS Employ-
ees, Agents, or Contractors
Regulation IGK-RB Career and Technology Educa-
tion Projects from Outside MCPS
Regulation IGK-RC Acquisition and Disposal of
Donated or Purchased Vehicles
for Career Development Educa-
tion Programs
Regulation IPD-RA 
Travel-Study Programs, Field Trips
and Student Organization Trips
Regulation JNA-RA Curricular Expenses for Students
Regulation JNA-RB Collection of Student Debts or
Obligations
Regulation KBA-RA Public Information
Regulation KGA-RA Community Use of Public Schools
Other Important Materials and Links
High School Athletics Handbook
Procurement Manual http://montgomeryschoolsmd.
org/departments/procurement
Purchasing Card http://montgomeryschoolsmd.
User’s Guide org/departments/procurement
Related Laws and Guidance
Gaming—Local Maryland Annotated Code §§
Provisions 13-1801 through 13-1815
Maryland PTA, Inc. Cash Encounters Guide for
Money Management
Public Ethics Maryland Annotated Code §§
15-811 through 15-817
Public Information Act Maryland Annotated Code §§
10-611 through 10-630
Activity Sponsor
An individual who has received principal approval to
plan and execute an event for students, such as a field
trip, student club, fund-raising event, etc.
Competitive Non-School Club
A group of students participating in an athletic activ-
ity that is supported by a private organization and is
not sanctioned by MCPS.
Montgomery County Public Schools

Designation or Delegation
A designation or delegation is specific authority con-
veyed from one person to the entrustment of another
person or persons. Any designation or delegation
impacting IAF actions shall be in writing, updated
each year, and filed in the school financial office, where
they will be available for examination at any time by
the OSA internal auditors.
Escheatment
Legal requirement for un-cashed checks and other
unclaimed accounts to be remitted to the state as
abandoned property.
Financial Agent
Elementary school administrative secretaries, sec-
ondary school financial specialists, school business
administrators, and central services fiscal staff.
Inactive Account
An account that has had no transactions recorded
in it for the entire current fiscal year with no future
revenue or expense anticipated to be recorded in it for
the following fiscal year.
MCPS Employee
Any person employed by MCPS in either a full-time,
part-time, or temporary part-time status.
Obligation
An obligation is an accounts receivable that a student
owes to the school for expenses incurred related to
school activities, or for the loss of or damage to school
property.
Petty Cash Item
An item of nominal cost usually not exceeding several
dollars purchased using petty cash funds.
Contact Information
Internal Audit Unit . . . . . . . . . . . . . . . . . . . . . . 301-444-8650
Department of Financial Services . . . . . . . . . . 301-279-7265
Department of Facilities Management . . . . . . 240-314-1060
Department of Materials Management. . . . . . 301-279-3348
Division of Controller. . . . . . . . . . . . . . . . . . . . 301-279-3115
Division of Procurement. . . . . . . . . . . . . . . . . . 301-279-3555
Division of School Plant Operations. . . . . . . . .240-314-1075
Maryland PTA, Inc. . . . . . . . . . . . . . . . . . . . . . 410-760-6221
Financial Manual CHAPTER 20 Independent Activity Funds
20–3
Roles and Responsibilities
Principal
A principal is the individual who has the overall fiduciary
responsibility for the IAF. Unless prohibited, a principal
may delegate in writing the authority to transact financial
business in his/her name to a subordinate individual;
however, the principal remains ultimately responsible for
that individual’s actions. Delegation should be considered
carefully so internal controls (separation of duties to have
multiple individuals involved with receipt of cash and rec-
onciliation of accounts) are not compromised by reducing
the oversight of fiscal management. Written delegations
pertaining to IAF shall be filed with the IAF records,
updated for each fiscal year.
Financial Agent
Each financial agent is responsible for being familiar with
MCPS rules and regulations as well as any applicable law,
communicating requirements to staff, and verifying that
procedures are followed. In the event that the financial
agent determines that a requirement is not being met, the
financial agent is obligated to inform the principal so that
appropriate action can be taken.
Visiting Bookkeeper
The visiting bookkeeper (VB) is a financial agent
assigned specifically to elementary schools for the
purpose of completing the monthly independent bank
statement reconciliation. Additionally, the VB provides
guidance and assistance to school administrative secretar-
ies who administer their respective school’s IAF.
Internal Auditor
The internal auditor evaluates controls designed to
assure the proper procedures for fiscal responsibility of
school funds and other assets are being followed. Dur-
ing evaluation, the internal auditor is concerned directly
with the prevention of fraud or improper use of MCPS
property in any form or extent in any activity reviewed.
The internal audit unit is authorized to conduct a count
of any school funds without advance notice given to the
principal, financial agent, or fund custodian.
Athletics Unit
The Athletics Unit provides guidance for administration
of the MCPS interscholastic athletic program. Included
in its guidance is the procedural control for event admis-
sion and gate receipts. The Athletics Unit also ensures
consistent standards for booster clubs that provide finan-
cial and/or non-financial support to MCPS schools.
March 2013
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20–4
Department of Infrastructure and Operations
The Department of Infrastructure and Operations
manages MCPS e-mail, user IDs, network connections,
internet access, online resources, telephones and mobile
phones, and ensures that all the applications running on
MCPS systems are working reliably and optimally.
Department of School Safety and Security
The Department of School Safety and Security is
responsible to ensure a safe and secure environment as
well as to coordinate the display of any federal or state
required material relating to safety and security within
MCPS buildings.
Activity Sponsor
An activity sponsor is designated by the principal to plan
and execute an event for students, such as a field trip,
fund-raising event, etc. Each activity sponsor is expected
to follow MCPS policies and procedures as well as any
additional applicable guidance provided by the financial
agent required for appropriate internal control proce-
dures for the specific activity conducted by the sponsor.
Authorization to Procure Goods and Services
Using IAF
The procurement of goods and services must adhere
to Board of Education policy, MCPS regulations and
guidelines, and the Division of Procurement’s Procure-
ment Manual. In addition, the procurement of goods and
services must be approved in writing by the principal
prior to staff proceeding with any intended purchase.
This prior approval may be granted by the principal’s
signature on any of the four following documents:
a. MCPS Form 280-54: IAF Request For A Purchase,
shall originate with and be signed by the requester
for an intended purchase of goods or services.
The form then shall be provided to the financial
agent to certify the availability of funds and then
presented to the principal for signature indicating
authorization to proceed with the purchase.
b. Memorandum designating certain school staff by
name with the authority to expend IAF not to
exceed a specified amount per transaction and not
to exceed a specified total amount per month. The
time period for which the memorandum grants
this authority cannot exceed a fiscal year, July 1
through June 30.
c. Budget prepared by the sponsor of a school activity
approved by the principal that indicates projected
revenue by source and projected expenditure by
March 2013
INDEX
type of item for a period of time not to exceed a
fiscal year. The sponsor cannot exceed the total
amount of expenditures in the approved budget
without receiving prior written approval of the
principal to amend the budget. The financial agent
is responsible for monitoring of any budget to
ensure revenues and expenditures conform to what
the principal has approved. Should revenues not
reach budgeted levels, sponsors are expected to
adjust expenditures to stay within budget.
d. MCPS Form 234-22: Purchasing Card: Approving
Official Acknowledgement. In addition to authoriz-
ing a staff member the privilege of using a pur-
chasing card, the principal also enters on this form
both per transaction and monthly dollar amount
limitations for expenditures as well as the school
account number to be charged for the purchase.
Detailed instructions for authorization and use of
the MCPS purchasing card are in the Purchasing
Card User’s Guide on the Division of Procure-
ment’s website at http://montgomeryschoolsmd.org/
departments/procurement.
Any request to procure goods or services entered into the
Financial Management System (FMS) and approved by
the principal within FMS is a valid principal authoriza-
tion to proceed with the procurement.
Additional Required Procurement Approvals
There are several instances in which the authorization to
procure certain goods and services require the principal
to obtain higher-level written approval in advance from
either the chief operating officer (COO), the Office of
School Support and Improvement (OSSI), the Depart-
ment of Facilities Management (DFM), or the BOE
ethics officer. Any procurement that requires higher-level
approval must cite the source of IAF to be used.
Procurements requiring the principal to obtain prior
written authorization from the COO include the
following:
a. Construction of building or other structures,
including alterations and attachments thereto. The
principal must submit proposals to the Depart-
ment of Facilities Management using the Facili-
ties Project Request Form and obtain prior written
authorization before construction or installation
of any playground equipment on school property
to ensure the specifications comply with safety
guidelines.
Montgomery County Public Schools

b. Aggregate school expenditures for the procure-
ment of refreshments in connection with meetings
and staff appreciation items that will exceed $60
per full-time equivalent (FTE) staff per fiscal year.
Refreshments (coffee, tea, doughnuts, cookies, etc.)
may be purchased with IAF and served at staff
meetings. The number of FTE staff for a school is
found in the Schools at a Glance document on the
MCPS website at http://montgomeryschoolsmd.
org/departments/regulatoryaccountability/glance.
c. Any procurement requiring the disbursement of
$7,500 or more, or any contract with an antici-
pated aggregate expenditure of $7,500 or more,
excepting disbursements and contracts for pictures,
yearbooks, field trips, proms, athletic uniforms, and
athletic equipment. This applies to the cost of any
single good or service as well as the total cost of
a similar good or service procured multiple times
during the same fiscal year.
d. Any contract with a period of performance
extending beyond 36 months, or with an aggregate
amount greater than $7,499, or involving liability/
risk of injury.
e. Essential/replacement equipment items that
cost more than $1,000 and less than $5,000, and
furniture to be procured with budgeted funds. In
the event that budgetary constraints prohibit the
purchase, the Department of Materials Manage-
ment should be contacted to determine if any
donated or used furniture and equipment is avail-
able to meet the school’s needs prior to the consid-
eration of using IAF funds. If IAF funds are used,
the principal must ensure compliance with appli-
cable procurement procedures and have sufficient,
non-restricted IAF funds available to purchase the
essential/replacement furniture or equipment.
f. Any contract involving liability/risk of injury that
could place MCPS, the school, or any MCPS
employee at risk for potential legal damages. (See
Contracts section, Liability Considerations, of this
chapter).
g. Promethean Boards.
Procurements requiring the principal to obtain prior
written authorization from OSSI include the following:
Any organizational membership for the purpose of either
enhancing school-community relationships or for staff
development paid by IAF must be in the best interest of
the school. Should a school require membership in more
Financial Manual CHAPTER 20 Independent Activity Funds
20–5
than one organization for staff development purposes the
principal should seek OSSI approval.
Procurements requiring the principal to obtain prior
written authorization from the BOE Ethics officer
include the following:
Any goods or services procured from any MCPS
employee, a member of any MCPS employee’s immediate
family, or any business entity (for profit or not-for-profit)
in which any MCPS employee or MCPS employee’s
immediate family has any amount of ownership in or
influence over decision making of the business entity.
Disbursement of IAF Funds
Prior to the disbursement of any IAF, the financial agent
will ensure that he/she has received the appropriate
authorization documentation to support the procurement
of the goods and services for which the disbursement is
to be made. The financial agent also will ensure adequate
documentation has been received to support payment
such as original itemized receipt or invoice and written
indication that goods and services were received in the
quantity and quality required. It is recommended that any
discrepancy in quantity and condition be resolved with
a vendor prior to payment. This documentation must be
marked or stamped as “Paid” upon processing for dis-
bursement and retained in the business office. Canceled
checks, vendor statements without invoices or delivery
tickets, or Request for a Purchase Form alone are not
considered adequate documentation to support disburse-
ments. The financial agent will ensure that a sufficient
dollar balance is available in the appropriate account(s)
prior to making a disbursement. One exception to this
rule is allowed if a transportation company requires
advance payment for a field trip prior to the sponsor of
the field trip collecting funds from all the participants and
remitting the funds to the financial agent. In this example,
the field trip account may have a temporary negative
balance. However, this disbursement is not allowed if it
would result in an overall deficit for the school’s entire
IAF. A second exception is allowed if the deficit created is
expected to be eliminated by a future reimbursement.
All disbursements from a school’s IAF, except those made
from a school’s petty cash fund, will be made by check
drawn on the school’s IAF bank account. Regardless of
the documentation that approved the procurement of
goods and services, all disbursements from a school’s IAF
other than for petty cash items will be approved by the
March 2013
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20–6
principal using MCPS Form 280-54: IAF Request For A
Purchase, prior to expenditure of funds.
The principal shall designate, in writing, school employees
who are authorized to sign checks. Their signatures and
that of the principal’s shall be entered on a signature card
filed with the financial institution with a copy on file at
the school. The number of school employees designated
should be limited but provide for the orderly conduct of
business based upon the amount of IAF activity. This
list of check signers should be updated when the school’s
authorized employees change position assignments within
the school or no longer are assigned to the school.
All checks will be completed with date, payee, and
amount prior to any signature. No checks will be signed
in advance of these completed items. Once written, a
check must not be altered or erased. If an error is dis-
covered, the word “Void” should be written in ink across
the face of the check, the signature section cut off, the
remainder of the check kept in the checkbook or stapled
to the stub, and a new replacement check written.
All checks issued will bear two signatures, one of which
must be that of the principal except for the following two
circumstances:
a. A bsence of the principal. The principal will desig-
nate by written memorandum an individual who has
IAF bank account signature authority to serve for
this purpose during any time period of absence. The
duration of authority conveyed by the principal will
not exceed one fiscal year.
b. Any check made payable to the principal also may
not be signed by the principal. Two other individu-
als who have IAF bank account signature authority
must sign any check payable to the principal.
c. Blank check stock not in use by the financial agent
to conduct daily business must be adequately
secured in a locked cabinet or safe. Each box of
blank check stock not currently in use should be
labeled and sealed so that any tampering would be
obvious.
Prohibited Disbursements of IAF Funds
a. Any disbursements that are primarily for the
benefit of school staff members or other MCPS
employees, unless the funds for these purposes are
derived solely from non-student generated sources.
Disbursements for meeting refreshments and staff
appreciation within the limitations authorized by
the COO are an exception.
March 2013
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b. Any disbursement that is prohibited by federal,
state, or county law, or by MCPS policy or regula-
tion such as reimbursement for intoxicants.
c. Meals for any MCPS employee should not be paid
for from IAF, unless it is in conjunction with previ-
ously approved overnight travel or in accordance
with staff appreciation policy.
d. Extension of credit or loans to MCPS employees
or to any person other than a student. Small emer-
gency loans for field trips and similar items may be
made to students at the discretion of the principal.
e. Contributions to charitable organizations, unless
funds have been raised by students for a specific
charity and advertised as such with full disclosure.
Appropriately raised contributions should be dis-
bursed to the designated charity as soon as possible
after conclusion of the collection time period for
the activity but no later than the end of the fiscal
year in which the funds were collected.
f. Direct payment for services to any MCPS
employee. All payments to MCPS employees for
services will be processed by the Employee and
Retiree Service Center (ERSC).
g. Purchase of gift cards for MCPS employees, unless
the funds used for purchase are derived solely from
staff contributions and disbursed from a staff-
owned account. As explained in IRS Publication
17, a gift card given to an employee is considered
as extra salary or wages regardless of the amount
involved and is, therefore, taxable. Purchase of gift
cards to be used as rewards to students is discour-
aged. Gift cards are fungible and susceptible to loss
or theft. Similar to cash, they must be secured and
controlled in like manner.
h. Purchase of gift cards such as grocery store cards
for classroom activity use.
Denial of Reimbursement for Procurements
Lacking Prior Approval
Any procurement of goods and services to be paid from
an IAF must have advance written approval from the
principal prior to making a purchase. Neither the princi-
pal nor the school IAF shall be held responsible for reim-
bursement of an expenditure made by a pupil, teacher,
or any other school employee who has not received prior
written authorization from the principal.
Montgomery County Public Schools

Contracts
Obligation Authority
Only the principal or acting principal may obligate the
school by contract for the purchase of equipment, sup-
plies, or services procured with IAF. All contracts must
be signed by the principal or acting principal and by an
authorized representative of the contractor.
Length
Any contract whose terms obligate the school for more
than 36 months in the future must be approved by the
COO. The principal will not commit the school to a
contract that contains a renewal clause that automatically
extends the contract beyond its original termination date.
Procurement Division Assistance
Principals are encouraged to seek the assistance of the
MCPS Division of Procurement before making a com-
mitment for a purchase approaching the $7,500 amount.
Principals must use the MCPS Division of Procurement
guidelines for any purchase costing $7,500 or more. These
guidelines are contained in the Procurement Manual on
the MCPS website at www.montgomeryschoolsmd.org/
departments/procurement/.
Cost of $1,500 or greater
Any contract for $1,500 or more must contain the fol-
lowing clause with regard to contract price: “The vendor
guarantees that, within the previous 90 days, he has not
offered the same product or service at a lower price or
better terms to any other school system in the Wash-
ington metropolitan area (District of Columbia, Prince
George’s County, Fairfax County, Alexandria, Arlington,
and Falls Church). The vendor agrees to adjust the con-
tract price and terms to any lower price or better terms
offered within such area during the following 90 days.”
Contractor Subsidies
Any commission, rebate, or free item provided by the
contractor, including free transportation provided to a
chaperone on a field trip, shall be stated specifically in the
written contract. No MCPS employee shall receive any
item or service free or at a reduced price in connection
with a contract without the knowledge and approval of
the principal. See MCPS Administrative Regulations
GCA-RA, Conflict of Interest, and IPD-RA, Travel-Study
Programs, Class and Student Organization Trips.
Financial Manual CHAPTER 20 Independent Activity Funds
20–7
Commissions and Bonuses
A contract such as those for yearbooks and student
pictures may include a provision for the payment of a
commission and/or bonus. If a contract has this provi-
sion, school staff must understand how the commission or
bonus is calculated and confirm that the school receives full
payment under the contract terms when due. Verification
is critical to ensure that the school receives all funds due.
Liability Considerations
Contracts that include activities such as a pool party,
moon bounce, dunking tank, vehicle towing, etc., may
appear to be without consequences but depending on the
contract’s terms, the school could have the potential to
cause personal injury or property damage liability claims
filed against MCPS. Prior to execution, any contract of
this type needs to be approved by the COO.
Contract File
The school financial agent will maintain a file with cop-
ies of all contracts for the period of time as stated in the
Retention, Disposal, and Removal of IAF Records section.
Management of IAF Funds
Principal’s Accountability
The principal is responsible for all monies received or dis-
bursed within the school as well as the implementation
of internal controls for achieving compliance with MCPS
policies, regulations, and procedures pertaining to these
funds. The principal has overall responsibility to ensure
the maintenance and timely preparation of monthly and
yearly financial reports.
Transparency
To provide transparency for the IAF, the principal shall
make available to the general public the school’s annual
financial statement and latest audit report. In accordance
with MCPS Policy KBA-RA, Public Information, a copy
of each document shall be placed in the school’s media
center for review by any interested person or organiza-
tion, and both students and parents will be advised of its
availability. Anyone from the general public who desires
a copy of the school’s annual financial statement or audit
report will be directed to contact the MCPS Public
Information Office using the procedures outlined in the
Maryland Public Information Act. The annual financial
statement is a mechanism for measuring and monitor-
ing a school’s IAF performance and reporting the results
to interested users. The documentation comprising
March 2013
INDEX
20–8
this statement is described in the Financial Accounting
Records and Reports section. Any personal informa-
tion and bank account numbers should be redacted on
any of the documentation included in the statement by
the financial agent prior to delivery of the copy to the
school’s media center. Beginning January 1, 2012, every
school audit report together with the respective princi-
pal’s response is uploaded to the MCPS website. Once
a school has a report uploaded to the MCPS website, it
is no longer necessary to maintain a copy in the school’s
media center. Anyone requesting a copy of the latest
audit report for these schools should be directed to access
it via the internet.
Purchase/Credit/Debit Cards
With the approval of the principal, the school may
establish credit with specific vendors as needed to
facilitate IAF operations. However, no general-purpose
credit card or debit card should be obtained in the name
of the school, except a card officially established by the
MCPS Purchasing Card Program. Guidance on using
the MCPS purchasing card can be found in the MCPS
Purchasing Card Users Guide.
The use of personal credit cards is discouraged because
purchases made with them are not exempt from sales tax
and may accrue unearned benefits to the cardholder. An
individual using a personal credit card will not be reim-
bursed for the sales tax portion of a purchase. The card-
holder should not profit from making a school purchase.
Therefore, the monetary value of any rewards such as fre-
quent flyer miles, rebates, etc., received by the cardholder
rightfully belong to the school that paid the expense and
should be turned over for deposit into the school’s IAF.
If the principal gave advance written approval as the only
option available for a personal credit card purchase, the
cardholder must provide the receipt and a copy of the
credit card statement on which the purchase is included
to the financial agent to substantiate reimbursement to
the cardholder.
Membership Cards
The Department of Materials Management (DMM) no
longer issues membership cards at no expense to MCPS
schools for discount shopping at COSTCO. However,
membership cards for a discount shopping club may
be purchased with IAF funds. The membership cards
should identify the school and be limited in the number
purchased per school. The cards also should be con-
trolled with usage monitored by the principal.
March 2013
INDEX
Financial Accounting Records and Reports
General
Financial records must be kept up to date at all times.
Delay in recording transactions significantly increases the
likelihood of error, loss of information, and loss of funds.
The financial transactions are recorded and maintained
using computerized double-entry bookkeeping software.
The financial records shall consist of a series of reports
and the files of supporting documents. In FY 2013,
MCPS will convert all school IAF software to a web-
based platform, School Funds Online (SFO).
Monthly Reports
The monthly reports shall be prepared as of the last day
of each month after all entries are recorded. At elemen-
tary schools using the visiting bookkeeper system, the
monthly reports preparation depends on the timing of
the visits. The monthly reports for schools once con-
verted to SFO are described in Appendix F, Visiting
Bookkeeper Checklist and Appendix G, End of Month
Checklist. The monthly reports for schools using EPES
and Quicken include the following:
1. General Ledger (EPES) or Cash Ledger and
Funds Ledger (Quicken), cumulative from July 1
through end of current month being reported
2. Sequential List of Receipts, for current month
3. Sequential List of Checks, for current month
4. Sequential List of Transfers (accounts 1-989), for
current month
5. Sequential List of Movements of Cash (accounts
990-999) (List of GL transfers in EPES), for cur-
rent month
6. Sequential List of Adjustment Journals Reports
for current month
7. Account Reconciliation (accounts 1-999, cur-
rent month) or Account Reconciliation—All
(Quicken), for current month
8. B
 ank Reconciliation computer generated and
manual, for current month
9. CIF statement from Escrow Manager Account for
each account
The monthly bank statement shall be delivered directly to
the principal, unopened. If the school uses online bank-
ing, the principal must independently access and review
Montgomery County Public Schools

the bank statement. The review is documented by a copy
of the bank statement, signed and dated by the principal,
signifying that the statement has been reviewed. This
copy may be kept electronically but must be available for
audit upon request. The principal shall review the state-
ment, the canceled checks if provided, and other docu-
ments and thereafter arrange for a reconciliation of the
statement by someone other than the school financial
agent (EPES users, see Appendix B, Bank Reconcilia-
tion Process–EPES, SFO users, see Appendix G). The
principal should have electronic access to cleared checks
through the bank’s online banking capacity in order to
identify the payee on any questionable check, and to
save/print the monthly bank statement if the school uses
online banking exclusively.
The checking account must be reconciled to the ledger
and the checkbook each month, as of the last day of the
month. If the bank statement indicates a cutoff date
other than the last day of the month, the school should
ask the bank to change the cutoff date. If the bank will
not do so, the school will prepare the reconciliation to
the end of the month by using the balance as of the last
day of the month shown on the bank statement.
The Federal Tax Identification Number to be used for
all MCPS IAF checking accounts is the MCPS ID #52
6000989. No other tax identification numbers should be
applied for from the IRS for a school.
The financial agent shall furnish the General Ledger Report
or Cash and Funds Ledger, cumulative from July 1 through
the end of the month to be closed, to the principal no later
than the 20th of the month following the close of each
month. The principal shall review this report, sign and
date it to indicate this review, and return it to the financial
agent to be filed with other monthly items. The princi-
pal also shall include review of the monthly Corporate
Purchasing Card Report Profiles, individual cardmember
reports, and logs to ensure purchases are in compliance
with MCPS policies and regulations.
A memorandum providing instructions for assembling
the documentation comprising the annual financial
report on IAFs and the due date (the third week of July)
to the Internal Audit Unit will be issued by the associate
superintendent for the Office of Shared Accountability
prior to June 30 of each fiscal year. The memorandum
will indicate those items the IAU can obtain directly
from SFO.
Financial Manual CHAPTER 20 Independent Activity Funds
20–9
Sponsor Records and Reports
The financial agent will provide to each sponsor a report
for each month in which any transaction was recorded in
that sponsor’s IAF account. The sponsor will verify the
report to ensure that the correct total of all remittances
submitted were credited to the account, all disbursements
from the account were in the amounts authorized, any
transfers into or out of the account were in the amount
authorized, and the ending monthly balance indicated on
the report by the financial agent agrees with that of the
sponsor’s records. If the sponsor agrees with the transac-
tion and ending balance amounts, the sponsor will sign
and date the report to indicate agreement, and return
within five days a copy to the financial agent for retention
in the finance records. If the sponsor does not agree with
any amount on the report, the sponsor immediately will
contact the financial agent to resolve the discrepancy and,
once resolved, sign and date the report. If the sponsor
and financial agent cannot resolve a discrepancy, they will
present the matter to the principal for resolution.
Activity sponsors should keep a detailed record of
receipts and disbursements for each activity showing the
number of units involved, the unit cost, the total cost,
the unit selling price, and the total selling price, together
with the opening balance and the balance to date in their
account in order to reconcile with the report received
from the financial agent. MCPS Form 281-21: Indepen-
dent Activity Funds Sponsor’s Record, also should be used
by sponsors to compute a continuous balance in their
accounts for assisting them with monthly reconciliation.
The financial agent shall maintain a control (for example,
a check-off list) to identify and follow up on those activity
account reconciliation reports not returned by sponsors.
Field Trips
MCPS Form 280-41: Field Trip Accounting, can be used
by sponsors to record field trip funds collected. Sponsors
should have a complete class or club roster of student
names to annotate how much each student paid, stu-
dents who did not attend the field trip, and students who
received waivers/scholarships or reduced fees. Sponsors
should keep the cost and fee information for each trip
and turn in the data to the financial agent when a trip is
completed. The data can be used to review the submis-
sion and recording of receipts and to estimate the pricing
of future trips. The financial agent should retain this data
until the next internal audit. If a field trip requires com-
mercial transportation, the Division of Procurement’s
March 2013
INDEX
20–10
website shall be used to select a carrier from the most
current listing of approved commercial carriers.
The calculation of the total cost of a field trip is the
responsibility of the sponsor. The sponsor also is respon-
sible for collecting an amount of funds that comes as
close as possible to the break-even point to pay for all
costs associated with a field trip that may include trans-
portation, admissions, food, substitute teacher, chaper-
ones, etc. A field trip is not designed to make a profit or
incur a loss. A student should not be expected to pay
more than his/her prorata share of the cost of the trip.
No student will be charged more than his/her prorata
share in order to subsidize any other student paying
either a reduced share or no share of the total cost of the
trip. If substitute teachers are used, the IAF must reim-
burse MCPS for the cost from field trip funds collected.
Sponsors will remit funds to the financial agent each day
that funds are collected.
Staff Development
Before the IAF is used to pay for staff development
expenditures, the availability of budgeted funds must
first be considered. If the principal determines that the
IAF is to be used for any staff development expenditure
including fees for organization memberships, training,
conferences, overnight travel, etc., the source of the funds
may not be student generated. The principal must docu-
ment with MCPS Form 280-54: Independent Activity
Funds Request for a Purchase which alternative sources of
funds were considered, what precluded their use in lieu
of IAF, and cite the source of IAF that clearly indicates
the funds being used are not student generated. For staff
out-of-town travel and local travel requiring lodging for
one or more nights, the approval requirements of MCPS
Regulation DIE-RA, Travel for Montgomery County Pub-
lic Schools (MCPS) Purposes, apply. Any overnight travel
request requires the additional submission of MCPS
Form 281-1: Request/Accounting For Overnight Travel
Funds.
Supporting IAF Records
Documents supporting the IAF reports are part of the
financial records and should be maintained in the school
office and filed in a logical manner (numerical, alphabeti-
cal, or chronological) in order to be readily available for
audit or other purposes. Supporting documents include
bank statements, canceled checks, deposit slips, receipts,
contracts, purchase requests, invoices, sales tax returns,
sponsor budgets approved by the principal, etc. See
March 2013
INDEX
“Retention, Disposal, and Removal of IAF Records” later
in this chapter.
IAF Account Structure and Utilization
The IAF general ledger consists of the cash ledger and
the funds ledger which details the specific accounts which
comprise the sum of the total cash balances. A standard
chart of accounts, which describes how transactions
affecting IAF are to be recorded, is at the end of this
chapter in Appendices A and C. In addition, the following
procedures shall be adhered to with respect to account
utilization:
Course Fees
Funds collected from approved course fees are to be
deposited into accounts based on the course number to
facilitate reporting and transparency. Regulation JNA-
RA, Curricular Expenses for Students, provides direction
on what may be included in the fee charged and the
process for approval. It is the expectation that funds from
course fees will be used for materials for that semester’s
course. Minimal residual funds may be transferred to
departmental accounts upon conclusion of the course.
Staff-Owned Accounts
Staff-owned accounts are used to record funds whose
source is generated directly from staff contributions
or indirectly from commissions of a vending machine
located in the faculty lounge or other area that is not
accessible to students. Staff-owned accounts may be
either included in or excluded from the school’s IAF.
If staff-owned funds are included in the IAF accounts,
they must be maintained in a separate fund account or
accounts. Staff-owned accounts must maintain a positive
balance. Student-owned funds must never be used to
offset deficits in staff-owned accounts.
At the discretion of the principal, staff-owned funds
may be maintained outside of the IAF records, provided
a separate bank account is maintained, the funds are
administered by someone other than the IAF financial
agent, the school name is not included as part of the
account name, and the IAF bank account is not used
to receive or disburse staff funds. Staff participating in
a separate staff bank account will establish their own
operating procedures independent of the IAF. Since a
school is authorized only one bank account, a separate
staff-owned account will not be afforded the same tax
exemption as the school’s IAF bank account or use of the
MCPS tax exemption ID number.
Montgomery County Public Schools

Sponsor Accounts
A sponsor may be assigned responsibility for an account
within the IAF general ledger to record the raising and
expenditure of student funds for the intended purpose
of the account. The principal shall not authorize any dis-
bursement or transfer of funds from a sponsor’s account
without the consent of the sponsor.
Memorial Accounts
Memorial accounts are used to account for funds donated
by persons or groups for specific educational purposes
such as student scholarships. Principals should seek legal
counsel from the Office of the Chief Operating Offi-
cer before accepting any restricted memorial funds. All
disbursements of memorial funds shall be in accordance
with the stipulated requirements of the donor. Memorial
funds shall be held in CIF savings accounts until dis-
bursed, and the memorial’s share of the interest income
shall be credited entirely to the memorial accounts. The
school must maintain the original documentation estab-
lishing the account and any legal amendments thereto for
internal audit to verify that the principal is administering
the funds in accordance with the agreement of the donor.
Schools should discuss alternate uses of funds with the
appropriate parties in the event funds raised do not reach
the anticipated levels. A memorial fund does not need to
have an additional CIF account separate from a school’s
general CIF account unless the memorial was established
based upon legal documentation restricting the use of the
funds or the amount of the funds received was significant
enough to justify creating a separate CIF account.
Class and Club Activities Accounts
Any balance remaining in the account of a graduating
class or an inactive club, after the class has graduated and
the class or club has had an opportunity to determine
the disposition of the balance, shall not be considered
as belonging to the graduated class or club and shall be
closed out to the general fund at the beginning of the
next year. Competitive non-school clubs, such as hockey,
shall not be permitted to carry accounts on the IAF
accounting records.
Negative Balance Accounts and Inactive Accounts
In reviewing the general ledger, the principal shall be
aware of any negative balances in IAF accounts that
continue to the end of the school year. The principal shall
investigate to determine the cause to preclude recurrence
and take timely corrective action to eliminate such nega-
tive balances.
Financial Manual CHAPTER 20 Independent Activity Funds
20–11
Inactive accounts with positive balances should be closed
out at fiscal year end and transferred to the benefiting
accounts or the general account, as appropriate. After
transfer, the inactive accounts should be deleted from the
general ledger that begins the new fiscal year.
Transfers Between Fund Accounts
The financial agent shall execute a transfer of funds
between fund accounts only after receiving a properly
executed transfer request, MCPS Form 281-46: IAF-
Transfer, at www.montgomeryschoolsmd.org/departments/
forms/pdf/281-46.pdf, signed by the account sponsor
and principal. Transfer requests shall be numbered and
entered individually in the ledger. Transfers may be
entered at any time during a fiscal year but all accounts
should be reviewed at the end of each fiscal year ( June
30) and transfers made to close accounts not needed for
the next fiscal year.
Escheat (uncashed check) Procedure
Effective in 2013, uncashed checks from schools that are
more than 180 days old must be reported to the Division
of Controller at the end of the calendar year, using the
process outlined in Appendix I. The Division of Control-
ler will contact the individuals and handle reissuance of
the checks following established procedures. Schools will
be billed for the escheat amount through the iReceivables
process. Unclaimed funds will be remitted to the state by
the Division of Controller in compliance with state law.
Schools are encouraged to contact payees who have not
cashed checks prior to 180 days. All questions regarding
uncashed checks should be directed to the Division of
Controller.
Business Activities
The business activities listed below provide the major
sources of revenue to support IAF activities. Because
these activities involve the handling of cash, it is impera-
tive that adequate internal controls are in place. Accord-
ingly, the principal and all personnel involved in such
activities should be aware of the existing regulations and
guidance established and the procedures that need to be
followed. At high schools, it is advisable that the princi-
pal assign the school business administrator to monitor
compliance with these requirements. All of these busi-
ness activities require approval of the principal prior to
implementation. Guidance on cash handling is provided
in Chapter 7 of the MCPS Financial Manual.
March 2013
INDEX
20–12
Vending Machines
The MCPS Division of Procurement has issued a
centralized contract for beverages and snacks. Schools
must operate under this full-service countywide con-
tract, which provides for periodic commissions based
on sales. The periodic commission payments received
should be reviewed to ensure that they agree with the
vendor’s statements and comply with the terms of the
contract. Vending machine accounts shall be established
in the #700 series of accounts for schools using EPES
and Quicken. Those schools using SFO use 0120.0000
for commissions generated by student purchases and
0130.0000 for commissions generated by staff purchases.
School Stores
It is recommended that school stores use the centralized
vending contract to order supplies to ensure compliance
with nutrition requirements and to take advantage of
on-site delivery. Detailed instructions and guidance for
operating school stores are contained in the Handbook
for the Operation of School Stores. This handbook can be
located on the MCPS website at www.montgomeryschool-
smd.org/departments/regulatoryaccountability/audit.
Fund-raisers
All fund-raising activities shall be in accordance with
Policy CND, School-Related Fund-raising. Detailed guid-
ance for sponsoring IAF fund-raisers is contained in the
MCPS publication, Guidelines for Sponsoring an IAF
Fund-raiser. All fund-raisers require principal approval
on the Request for Fund-raiser form and analysis of the
activity on the Fund-raiser Completion Report.
Fund-raising actions, in brief, performed by the sponsor
and financial agent include the following:
1. Determine purpose (how funds will be used).
2. Determine desired amount to raise.
3. D
 iscuss idea with financial agent for feedback and
feasibility.
4. Complete a Fund Raiser Request form including:
a. D escription of purposed fund raiser including
merchandise to be sold
b. Name of vendor (who is providing the goods
to be sold), if applicable
c. Budget—cost per item, sale price per item,
expected cost, expected profit
d. Intended use of proceeds
e. Proposed dates
March 2013
INDEX
5. O
 btain written approval from the principal prior
to advertising the fund raiser or ordering any
merchandise (Reminder – contracts must be
signed by the principal)
6. I f fund raiser includes selling tickets, follow
MCPS regulations DMB-RA and complete
MCPS Form 280-54: Independent Activities Fund
Request for a Purchase
7. Deposit funds each day that funds are collected
8. K
 eep deposits separate (for example, concession
sales must be deposited separately from ticket
sales in order to adequately determine profits/
losses)
9. C
 ompete a Fund Raiser Completion Report
using MCPS Form 281-25: Statement of Profit or
Loss on Sale of Merchandise
10. T
 ransfer funds to receiving account before dis-
bursing funds
Admission Events
Athletic and nonathletic admission events that generate
receipts shall be controlled in accordance with MCPS
Regulation DMB-RA, Control of Admission Receipts.
Such receipts are highly susceptible to improper diver-
sions and should be controlled carefully. The regulation
provides for internal controls through (1) the use of
serially numbered tickets, (2) separation of duties that
includes a ticket controller, admissions manager, and
report auditor, (3) preparation and signature of MCPS
Form 280-50: Tickets and Cash Report of Admissions
Manager, and (4) reconciliation to ensure that the value
of unsold tickets plus funds deposited equals the value of
tickets issued. The procedures for how these controls are
carried out are outlined in the regulation.
Student Parking Permits
The COO provides guidelines to high school principals
with information pertaining to parking permits. Park-
ing fee receipts should be recorded in the subaccount
#6091 of the Athletics Account #100 for schools using
EPES. Those schools that have converted to SFO will
use account #1000.6091. A record should be kept of all
numbered permits received by the school and unused
permits should be retained. Each semester, reconcilia-
tion should be made of the funds received and deposited
to the number of permits sold. Beginning in FY 2012,
all unused permits must be returned to the Office of
Montgomery County Public Schools

the Chief Operating Officer with copies of the school’s
permit sales records and EPES reconciliation reports for
the IAF account #100-6091. Further information is con-
tained in MCPS Regulation ECG-RA, Student Driving
and Parking Facilities.
Yearbook Sales
To identify and separate yearbook advertisement rev-
enues from sales receipts, two separate accounts shall be
established, Yearbook and Yearbook Advertising. Upon
receipt of the yearbooks, the sponsor should ensure that
the inventory is counted and adequately secured, distri-
bution is monitored, and a physical inventory is taken
at fiscal year end. The sponsor must maintain a record
of books ordered and received, all books sold at specific
prices, a record of advertising revenue, and a detailed
list of any yearbook giveaways and books returned to
the vendor for credit. At fiscal year end, MCPS Form
281-25: Statement of Profit or Loss on Sale of Merchandise,
at www.montgomeryschoolsmd.org/departments/forms/
pdf/281-25.pdf, should be prepared by the sponsor for
review by the school business administrator and the prin-
cipal to reconcile revenue, expenditures, and remaining
physical inventory to the accounting records.
Picture Sales
Commission statements received from vendors should
contain sales information so that the basis for commis-
sions received can be confirmed as correct easily.
Career and Technology Education
These business activities shall be conducted in accor-
dance with MCPS Regulation IGK-RB, Career and
Technology Education Projects from Outside MCPS.
Credit shall not be extended to any MCPS employee
or other person. When work is requested by customers,
they should be advised, and the order forms should so
state, that no work will be released until payment has
been made in full.
Payments for Career and Technology Education proj-
ects should be made to the school financial agent. If
the amount of cash received is small, however, and its
handling is part of the instructional program (cosmetol-
ogy shops, for example), the principal may approve the
receipt of cash in a particular shop. Whatever funds are
collected by the enterprise should be turned in daily to
the financial agent together with copies of the related
work orders or other receipts.
Financial Manual CHAPTER 20 Independent Activity Funds
20–13
Shop work shall be performed pursuant to a written
work order. Each shop shall have a set of prenumbered
work orders, with the names of both the school and
the shop printed thereon. Work orders shall be used
in numerical sequence within each shop. Voided work
orders shall be sent to the office for retention by the
financial agent.
When payment in full is received for work done under
a work order, each copy shall be stamped “Paid,” dated,
and marked with an indication of whether payment was
by cash or check. One copy is given to the customer, one
copy is retained by the Career and Technology Education
shop, and one copy is retained by the financial agent.
At the end of each month, the financial agent shall recon-
cile work orders and other receipt documentation used
with cash receipts. The Career and Technology Educa-
tion teacher shall provide the financial agent with a list
of work orders in process and other unused receipts as of
the end of the month so that all issued work orders and
receipts can be accounted for.
The Career and Technology Education teacher shall
maintain a detailed record of receipts and disbursements
of the enterprise he/she manages and shall reconcile it
monthly to the activity account reconciliation report
received from the financial agent.
Delegations by the principal of authority to purchase
shop equipment, tools, materials, and supplies shall be in
writing and shall be monitored carefully by the principal
and the school business administrator. All purchases
should be in compliance with MCPS procurement
practices.
Students shall not pick up or receive merchandise pur-
chased for the Career and Technology Education shop.
The Career and Technology Education teacher is respon-
sible for receiving all merchandise and for inspecting it
to ensure that it is the kind and quantity ordered and
is in good condition. If the results of the inspection are
satisfactory, the teacher shall sign and date the invoice or
receiving ticket to indicate acceptance of the merchandise,
and then forward it to the financial agent for payment.
Inventories of materials, parts, and supplies shall be kept
at the minimum necessary for efficient shop operation.
So far as practical, purchases should be limited to items
expected to be used within the school year. A physical
inventory, priced at cost, including the purchase date,
shall be taken as of June 30 each year and at such other
March 2013
INDEX
20–14
times as directed by the principal or the Office of School
Support and Improvement. All purchases of materials
and parts (except for items of nominal value) shall be
accounted for either as inventory or on itemized work
orders.
Donated vehicles and equipment shall be accepted and
recorded in accordance with the provisions of Gifts to
the School and Student Body and Equipment under the
Miscellaneous Section below.
Any use of the shop facilities outside of normal school
hours must be authorized in advance, in writing, by the
principal, specifying the date and hours of the approved
usage and naming the teacher or other MCPS employee
to whom the authorization is granted in accordance with
the requirements of MCPS Regulation KGA-RA, Com-
munity Use of Public Schools. The facilities never may be
used outside school hours by students without supervi-
sion. Under no circumstances shall equipment or tools be
removed from the premises without the written approval
of the principal.
Miscellaneous
Payment to Vendors and MCPS
Each school shall maintain a good credit rating by paying
all valid obligations promptly, by the due date established
by the vendor. Failure of one school to make prompt pay-
ments to a vendor could jeopardize the continued busi-
ness relationship with that vendor for all other MCPS
schools. Each school shall promptly (normally within 30
days) pay all amounts owed to MCPS. Failure of a school
to make prompt payments to MCPS could jeopardize
that school’s operating budget allocations as well as its
ability to continue using the MCPS purchase card.
Payments for Personal Services and Reimbursements
for Expenses
Guidelines and procedures for payments to employees,
students, and independent contractors from IAFs are
contained in MCPS Regulation DIA-RB, Payments for
Personal Services and Reimbursements for Expenses from
School Independent Activity Funds (IAFS). The following
is a summary of the requirements:
MCPS Employees
All payments for personal services to MCPS employees
must be processed through the MCPS payroll system
using MCPS Form 280-46: Report of Payments to MCPS
March 2013
INDEX
Employees for Personal Services. Payroll procedures are
published by the Employee and Retiree Service Cen-
ter. Schools will be billed monthly by the Division of
Controller for the payroll amounts incurred. An addi-
tional 7.65 percent of the amount of wages paid will be
included in the bill for the employer’s share of FICA.
Schools are expected to make complete payments when
billed. No school or activity should incur payroll costs
without having sufficient resources to make payment.
MCPS Students
The school shall report each student to whom payments
for personal services are made to the Division of Con-
troller using MCPS Form 280-47: Report of Payments to
MCPS Students for Personal Services, prepared in accor-
dance with the instructions on the back of the form.
Independent Contractors
Payments to independent contractors (non-employees
of MCPS) shall be made only after IRS Form W-9 has
been obtained. The financial agent may contact the Divi-
sion of Controller to determine if this form is already on
file for an independent contractor. Such payments must
be reported monthly to the Division of Controller using
MCPS Form 280-47A as described in MCPS Regula-
tion DIA-RB, Payments for Personal Services and Reim-
bursements for Expenses from School Independent Activity
Funds (IAFs) for payments made in 2013 prior to con-
version to the SFO system. Effective with the conversion
to SFO, data for payments in 2013 and beyond will be
used by the Division of Controller for 1099 preparation
directly from the system, eliminating the need for schools
to submit information on paper forms. It is important
that schools verify that an individual is not an MCPS
employee in any capacity (including substitute teacher
or temporary) prior to contracting. Schools can confirm
through ERSC.
Obligations
School staff issue financial obligations to students for the
replacement cost of unreturned or damaged books, mate-
rials, equipment, property damage, or uniforms as well
as any fees that have not been paid. Copies of financial
obligations are sent to the respective department resource
teacher and the financial office. Once issued, a teacher,
sponsor, or coach must not accept books, uniforms, etc.,
because the obligation will remain outstanding as it was
reported to the financial office. Only the financial agent
can clear a student from an issued financial obligation.
Montgomery County Public Schools

Obligations can be accounted for using methodology
similar to field trip record keeping. As an example, for
collection of class fees, class sponsors should have a com-
plete class roster of student names entered on a work-
sheet to annotate how much each student paid, students
who had fees waived or reduced, and obligations issued.
Sponsors will remit funds to the business office when
collected and provide a final accounting worksheet with
the entire class roster annotating fees collected, waived,
and reduced and obligations issued.
At the beginning of the school year, an elementary school
should transfer any uncollected obligation owed by any
prior-year fifth grade student to the MCPS middle
school where the debtor student matriculated. A middle
school should transfer any uncollected obligation owed
by any prior-year eighth grade student to the MCPS
high school where the debtor student matriculated. At
the beginning of the school year following the graduation
of a debtor high school student, the high school should
consider writing off any uncollected debt still owed.
Gifts to the School and Student Body
Gifts of material and/or equipment, whether donated by
a club, a class, or a group or person outside the school,
may be accepted only in accordance with the provisions
of MCPS Regulation DJA-RB, Purchases of Materials
and Equipment Using Nonappropriated Funds and Accep-
tance of Donated Items. All such gifts must be approved
by the principal before being accepted. Additional
approvals may be required by the regulation.
Equipment
Any equipment that a school acquires by gift or IAF pur-
chase shall become the property of MCPS. Procedures
for controlling such property are contained in MCPS
Regulation EDC-RA, Control of Furniture and Equip-
ment Inventory.
Retention, Disposal, and Removal of IAF
Records
The following IAF records shall be retained for a period
of five years after the close of the year to which they
apply and until all audit requirements have been met,
whichever is longer, and then destroyed:
• End-of-year annual financial report
• Audit reports and correspondence
• Records of investigations
Financial Manual CHAPTER 20 Independent Activity Funds
20–15
• Monthly reports ( July 1 through June 30) listed
in the section Financial Accounting Records and
Reports
• Maryland retail sales tax returns, together with sup-
porting documents
• Authorizations and delegations by the princi-
pal, deputy superintendents, and community
superintendents
• Bank statements, reconciliations, canceled checks,
and deposit slips
• Documentary evidence of investments in which the
investment is liquidated
• MCPS Form 280-54: Request for a Purchase, with
supporting documents
• Invoices from vendors with supporting documents;
these go with MCPS Form 280-54 or purchase card
documentation
• Invoices to debtors for amounts owed the school
with supporting documents
• Petty cash vouchers with supporting documents
• Receipts with supporting documents
• MCPS Form 280-45: Record of Funds Transmitted
to MCPS, with supporting documents
• MCPS Form 280-50: Tickets and Cash Report of
Admissions Manager
• MCPS Form 281-46: Independent Activity
Funds—Transfer
• Contracts
• Corporate Purchasing Card Report Profiles and
individual cardmember reports
Removal of Records from School Premises
IAF financial records must not be removed from the
school premises except as indicated by the retention peri-
ods above. This applies both to formal records such as
the monthly reports and to supporting documents such
as bank statements, canceled checks, paid invoices, check
stubs, and receipt books.
In the event that unusual circumstances require an excep-
tion to this rule, the principal must authorize in writing
such removal in advance, specifying the dates to which
the authorization applies. In any event, all records must
be returned to the school at the start of the next working
day so that they are available during all working hours.
There should never be a circumstance when financial
records are unavailable during normal working hours.
The COO may authorize the Internal Audit Unit to
remove IAF records and MCPS equipment containing
IAF records or related data from a school to conduct an
audit.
March 2013
INDEX
20–16
School-Affiliated Organizations
School-affiliated organizations such as booster clubs
and PTA/PTSAs must follow school and school system
guidelines and procedures with respect to fund-raisers,
including gaining approval from the principal or designee
for all fund-raisers and following approved school system
accounting procedures.
School-affiliated organizations may use the name of the
school in their organizational name as long as it is clear
that the organization is the [School Name PTA] or
[School Name Boosters] to clarify that the organization
is not the school itself. These organizations never are
permitted to use the MCPS tax identification number on
their bank accounts.
Booster Clubs
Additional information pertaining to booster clubs is
found in the High School Athletics Handbook published by
the MCPS Athletics Unit.
Booster Clubs are not permitted to pass funds through a
school IAF.
PTA/PTSAs
Information pertaining to PTA/PTSA resource guide-
lines is found in Cash Encounters published by Maryland
PTA, Inc., Glen Burnie, MD. This document includes
a section pertaining to items for which PTAs can and
cannot provide funds and is available in the members
only section of their website at www.mdpta.org. Refer any
additional PTA/PTSA questions not answered in this
document to Maryland PTA, Inc., via e-mail or tele-
phone at 410-760-6221.
PTA/PTSAs are not permitted to pass funds through a
school IAF.
Closing Schools
General Instructions
During the year preceding the closing, inventories of
salable merchandise should be reduced to a minimum
by limiting purchases, as far as practicable, to quantities
that can be sold before the closing date. The principal is
responsible for the disposition of unsold merchandise.
If possible, it should be returned to vendors for credit or
refund. If credit or refund cannot be obtained, the mer-
chandise may be transferred to the receiving school(s). A
record must be kept, for audit purposes, of the quantities
and cost of all items transferred to receiving schools or
otherwise disposed of other than by sale to students.
March 2013
INDEX
Sometime prior to the closing date (recommend at least
120 days in advance), the principal will contact the Divi-
sion of Procurement to coordinate the removal of vend-
ing machines and cessation of product deliveries.
Every effort must be made to collect all accounts receiv-
able before the closing date. Schools with postage meters
or permits should settle their accounts with the post
office before closing.
Every effort must be made to resolve all accounts pay-
able due to vendors and MCPS before the closing of the
school. Vendors should be notified to submit their bills
by a specified date. School personnel also must be noti-
fied to submit any claims they have for reimbursement of
expenses promptly so that they may be paid before the
closing date.
During the last four months (120 days) before closing,
it is suggested that all checks written on the IAF bank
account be accompanied by a statement requesting that
the check be cashed promptly. If any checks have been
outstanding more than 60 days, the payees should be
contacted and requested to cash them.
The closing school must not transfer any cash or invest-
ments to the receiving school or schools. The transfer will
be made by the Office of Shared Accountability (OSA),
in conjunction with the Office of Teaching, Learning, and
Programs and/or the Office of the Chief Operating Offi-
cer, after the closing audit of the IAF accounts has been
completed. At that time, the remaining funds (including
the value of inventory of salable merchandise already
transferred) will be allocated to the receiving schools in
accordance with the procedures detailed below.
During the year of closing, any excess funds available may
be invested in the MCPS Centralized Investment Fund.
Before the closing date, new signature cards must be filed
with the financial institutions to authorize signatures
on checks and withdrawals by employees of the Office
of School Support and Improvement and the Office of
Teaching, Learning, and Programs after the school is
closed. This is necessary in order to facilitate payment
of any late bills and the transfer of funds to the receiving
schools after the accounts have been audited. Specific
names and procedures for the new signature cards will be
provided by OSSI prior to the closing date.
The financial institutions must be notified to address
future bank statements and correspondence to OSSI
after the closing date.
Montgomery County Public Schools

Staff must prepare the regular annual financial state-
ments at closing to reflect the June 30 closing. The finan-
cial statements must be submitted to OSA, together with
the record of disposition of unsold merchandise referred
to above.
The financial records for the current fiscal year should
be boxed, appropriately labeled, and delivered to OSA.
Financial records for earlier years should be sent to
Central Records for storage. Guidance as to which
records may be destroyed after five years and which must
be retained permanently is provided above. Permanent
records should be boxed separately, and other records
should be boxed, labeled, and arranged chronologically to
facilitate their removal and destruction when the reten-
tion period is completed. Standard storage boxes and
labels, available from Central Records, must be used.
The school shall provide OSA with the summer
addresses, telephone numbers, and the new assignments
(if still with MCPS) of the principal and the financial
agent who maintained the IAF financial records during
the year of closure.
The principal shall notify the Maryland Comptroller’s
Office that sales taxes no longer will be collected. A copy
of the letter will be forwarded to OSA for record-keeping
purposes.
Disposition of Residual Independent Activity Funds
The following procedures will be followed in the alloca-
tion of the residual IAFs of closed schools:
IAFs will be transferred between schools only when a
school is closed. The gain or loss of grade, or the gain or
loss of students due to boundary changes, will not result
in the transfer of IAFs between schools, unless a school
closing also is involved. OSSI shall provide instructions
for the disposition of any funds donated for a specific
purpose in a manner that will preserve the integrity of
each fund and continue the purpose for which it was
established under the terms of the donor.
The policy for allocating the funds (other than specific-
purpose donated funds) of closed schools is based on
replicating, as closely as possible, the situation that would
have prevailed if the school had not closed. The funds will
be allocated to the receiving schools in proportion to the
number of students to be newly assigned to each, in the
school year following closing these students would have
attended the closed school had it remained open. In the
case of a high school, graduating seniors will not be consid-
ered in the allocation formula because they do not retain
Financial Manual CHAPTER 20 Independent Activity Funds
20–17
ownership of any part of the IAFs. However, since incom-
ing freshmen become part owners of the IAFs, they will be
considered in determining the entitlement of the receiving
schools, even though they never attended the closed school.
The projected enrollment figures to be considered by the
Board of Education in its decision to close the school will
be used to compute the allocation formula.
When the closing of a school is phased over a period of
two or more years, any changes in grades or boundaries
which occurred prior to its final year of operation will
be ignored for purposes of the computation. The grades
and boundaries of the school at the date of final closing
will govern, and the students in those grades from within
those boundaries during the following school year will
determine the allocation of funds to receiving schools. As
noted, however, this will not be based on actual enroll-
ment but rather on the projections considered by the
Board of Education in its decision to close the school.
Only those schools that receive students from within
the boundaries of a closed school shall be entitled to any
portion of the closed school’s funds. The fact that, at the
time of closing, some of the receiving school’s students
are reassigned to a third school, does not entitle the third
school to any portion of the funds of the closed school.
The retention of students in an elementary school who
would otherwise have graduated to a closed middle
school does not entitle the elementary school to any por-
tion of the funds of the closed school.
All other circumstances that may cause a school to
be closed and that are not mentioned above must be
referred to the deputy superintendent of school support
and improvement and/or the chief operating officer for a
decision.
Opening Schools
Generally, the COO will authorize the controller to issue a
nominal amount of start-up funds to a new school in order
for the principal to open an IAF checking account with
a bank. The COO may require the school to reimburse
MCPS for these start-up funds after a period of time.
The principal will open a checking account with a bank
in accordance with the procedures outlined in Chapter 7,
Cash Control of School Funds, in this manual.
If training has not been received already by the principal
and financial agent(s) prior to the opening of the new
school, they will schedule themselves for School Finance
Basic Training as soon as possible.
March 2013
INDEX
20–18
Frequently Asked Questions
My school conducted fundraising for a charity. Since we
didn’t collect as much money as expected, can I increase
the amount of the check I send to the charity if the
sponsor of another account within the IAF agrees to do so?
No. You only can send to the charity the exact
amount of money collected; no more and no less.
Can a car wash be conducted on school property?
Car washes may not use school water supplies. The
Washington Suburban Sanitary Commission (WSSC)
requires the rental of a meter to connect to a fire
hydrant to record the amount of water used, for which
WSSC will request reimbursement. County environ-
mental groups consider car washes as being detrimen-
tal to the Chesapeake Bay and other water ways due to
the resulting run off, so car washes are discouraged.
My school wants to sell coupon books to raise funds. Do we
need to collect sales tax?
No. Sales tax is not collected at the time the coupon
book is sold. Sales tax is collected by the retailer at
the time a coupon from the book is redeemed by the
purchaser of the coupon book. For more information
on sales tax, see Chapter 18, Taxes.
Can I use IAF funds to purchase flowers to give to another
MCPS employee to recognize his/her accomplishment such
as a promotion?
No. You either may use your personal funds or staff
contributed funds maintained as a convenience in the
IAF. You may not use student funds for this purpose.
Can I sell or give to another school any furniture or
equipment for which my school no longer has a need?
No. You must contact the Department of Materi-
als Management for disposition of any furniture or
equipment that your school no longer needs even if
it was purchased with your school’s IAF. For more
information, refer to MCPS Regulation DNA-RA,
Disposition of Board of Education Property.
My school received notification in the mail from a company
that stated we would be in violation of federal and state
Occupational Safety and Health Administration (OSHA)
legal requirements if we failed to purchase for display the
posters the company was selling. What should I do?
Look closely at what you received. Sometimes adver-
tising materials are made to look like official notices.
Any OSHA requirements are coordinated by MCPS
Systemwide Safety Programs.
March 2013
INDEX
I received a letter from the Maryland Office of the Secretary
of State that said the Charities and Legal Services Division
had not received my school’s annual submission required by
organizations raising charitable contributions in Maryland.
What do I do?
A school’s PTA/PTSA often uses the school’s mail-
ing address for its correspondence. Therefore, the
letter may be addressed to your school but it is meant
for your PTA/PTSA. It is the responsibility of your
PTA/PTSA, not your school, to file the Annual
Update of Registration form and other associated
documentation with the Maryland Office of the Sec-
retary of State. Forward the letter and attached form
to your school’s PTA/PTSA representative. Public
schools do not have this requirement.
My school received an invoice for internet service from
Comcast. Do I use my school IAF funds to pay it?
No. All schools are provided internet service but some
need additional bandwidth or are in locations with
deteriorating service from Verizon not yet providing
FIOS in these areas. Therefore, these invoices are paid
centrally and should be sent to the Department of
Infrastructure and Operations, 45 W. Gude Dr., Ste.
3300, for payment. Questions should be directed to
240-453-2446.
My school was given a stock certificate from a donor. What
should I do with it?
Whether the stock certificate was in paper or elec-
tronic form, it should be sold so that the proceeds
can be used to benefit the students of your school.
Contact the Department of Financial Services for
assistance with the conversion process of any market-
able security. Questions may be directed to either the
chief financial officer at 301-279-7265 or the chief
investment officer at 301-517-5822.
A staff member requested reimbursement without
presenting a receipt for a school purchase for which the
business office has documentation that the principal
approved the procurement in advance. Can the staff member
be reimbursed if the receipt was lost?
Yes, if this is approved by the principal with the fol-
lowing conditions. The financial agent must verify
that the item(s) approved for purchase were received
in good condition, obtain a written statement from
the staff member as to the circumstances of the lost
receipt listing description of item(s) and cost of each,
verify the reasonableness of the amount requested
for reimbursement, and attach the statement to the
MCPS Form 280-54.
Montgomery County Public Schools

A new principal was appointed to my school and wants
to forgive all prior recorded student obligations. Is this
allowed?
No. Obligations are debts owed to MCPS and the
principal’s fiduciary responsibility is to take reason-
able measures to collect the debts. A debt may be
forgiven on a case-by-case basis depending on the
principal’s consideration of a student’s financial
circumstances.
Can the principal deny reimbursement to a staff member
who presents a receipt for a school-related purchase?
Yes. If the staff member did not receive prior approval
from the principal before making the purchase, the
principal is under no obligation to reimburse the staff
member.
How do I calculate the maximum amount that my school can
spend for staff refreshments and appreciation for the fiscal
year?
At the beginning of each fiscal year, calculate the
maximum amount that your school can spend for the
combined total of staff meeting refreshments and staff
appreciation for that fiscal year, July 1st through June
30th. This calculation is based on full-time equivalent
(FTE) staff rather than the number of individual staff
members assigned to a school. From the most recent
Schools-at-a-Glance on the MCPS website, find the
number of FTE for your school on the page with the
Staff Positions section. Add the total professional and
total supporting services numbers together. Multiply
that sum by $60 to get the maximum dollar amount
you can spend for that fiscal year.
Does sharing the cost of refreshments with other high school
for hosting an all high school athletic directors meeting
at Carver Educational Services Center convened by the
director of Systemwide Athletics count towards my fiscal
year $60 per FTE calculation?
No. The cost of refreshments for these meetings is
an exception to the $60 per FTE rule. The School
Funds Online chart of accounts has an account in
the athletic series to record these costs. However, any
meeting your school athletic staff convenes separately
does count against your $60 per FTE per fiscal year
maximum amount.
Financial Manual CHAPTER 20 Independent Activity Funds
20–19
Can a school fund-raising activity be conducted to benefit
staff-owned accounts?
No. However, fund-raising may be conducted to
provide supplemental support for staff to participate
in professional development activities that contribute
toward student success.
My PTA is requesting me to give them the Box Tops for
Education funds I deposited into my school IAF. Should I
do this?
No. The funds received from Box Tops for Education
and other similar programs are meant to enhance
student education. The mission of PTAs is providing
support to schools.
Can the social committee buy gift cards?
Yes. If the funds are entirely contributed by the staff,
gift cards may be purchased to recognize a special
event of a staff member, such as the birth of a baby,
marriage, retirement, or other similar milestone. Gift
cards are not to be used to reward staff members.
How do I know whether to charge/collect sales tax for my
fund raiser sale? How do I know how to calculate sales tax?
How do I know how to remit it?
Please see chapter 18 of this manual, Taxes.
When we are setting student obligations and the amount is
not a whole number, can we round up?
Student obligations should be for the exact amount
of the damage or lost item if possible. If rounding is
needed, the amount should be rounded down to the
nearest whole dollar.
Questions related to Athletics
Can student athletes be required to pay for uniform items?
Yes. Athletic purchases fall into the following three
different categories:
1) Required Uniform Items—Inventory is main-
tained by the school; items are issued to students.
• These items are required for participation in
interscholastic athletic competitions
• If a student damages or loses an assigned item,
the student incurs a financial obligation for
repair or replacement costs.
2) Required Personal Items—Student purchase is
required for participation; items are retained by
students.
INDEX March 2013
20–20
• The items become the personal property of the
student for reasons of personal hygiene or safety
requirements.
• Ideally, these items are made available for stu-
dent purchase directly from the vendor.
• Alternatively, schools may coordinate these
student purchases as a pre-sale activity, with stu-
dents placing orders and paying for items (plus
sales tax) in advance.
If offered for sale through the school, the cost of the
item to students (rounded to the nearest dollar for
ease of accounting) must be calculated with sales tax
and no profit to the school’s athletic program. No
overcharge may be assessed to paying students to off-
set the costs absorbed by the school for students who
are unable to pay.
The coach would be responsible for coordinating
orders and collecting funds from students. Checks
should be made payable to the school (not to an
individual) and funds collected should be remit-
ted to the school financial specialist on a daily basis.
The order should be transacted according to MCPS
procurement guidelines and paid through the school’s
independent activity fund.
3) Optional Personal Items—Student purchase is
optional; items are retained by students.
• Students may choose to purchase personal
items/team gear not required for participation
in sports.
• Coaches must emphasize that purchasing
the item is an option, not an expectation or
requirement.
• If offered for sale through the school, the cost
of the item to students (rounded to the nearest
dollar for ease of accounting) must be calculated
with sales tax.
• If the principal has approved the sale of optional
team gear as a fund-raising activity, the cost to
students may be calculated to profit the school’s
athletic program.
• The sale of optional team gear may be coordi-
nated by parent booster groups if approved in
advance by the principal.
March 2013
INDEX
o Parent/booster groups should have their
own bank account with their own federal tax
identification number, totally separate from
the school’s IAF.
Can athletic teams fund raise?
Yes, but athletic fund-raising should conform to the
following guidelines:
• All fund-raising activities shall be in accordance
with Policy CND, School-Related Fund Raising.
• The principal must authorize in advance and in
accordance with Policy CND all fund- raising
activities.
• Booster clubs must follow school and school
system guidelines and procedures with respect to
fund-raisers, including gaining approval from the
principal or designee for all fund-raisers and fol-
lowing approved school system accounting proce-
dures. Such activities should be planned/scheduled
collaboratively with the school administration to
minimize conflicts with the instructional program
or previously planned school-sponsored fund-
raising activities.
• Fund-raising activities may not be conducted for
the purpose of raising funds to purchase personal
items retained by student athletes or to support
out-of-season activities such as camp or clinic fees,
meals, apparel for coaches or participants, summer
league-related expenses, or coaches’ compensation.
• Fund-raising activities may be conducted to
defray the cost of optional activities such as travel
expenses for out-of-area tournaments and athletic
competitions.
Can student athletes be required to generate a minimum
amount of fund-raising profit (e.g. sale of merchant coupon
books)?
No. Participation in school fund-raising activities
shall be on a voluntary basis, and no student shall be
compelled to participate or contribute.
This chapter maintained by the
Internal Audit Unit
Last update: March 2013
Montgomery County Public Schools
 20–21

APPENDIX A
Chart of Accounts
EPES and Quicken
In order to provide uniform reporting, the following account numbers should be used. Additional numbered accounts
may be added as needed.
FUND ACCOUNTS
1–99 GENERAL SCHOOL 209–Class of 2019, 2029 600–699 EXCHANGE
ACTIVITIES 210–Class of 2010, 2020, 2030 ACTIVITIES*
010 General 211–258 Available to Secondary Schools 600 Exchange
011 Meeting Refreshments 259 Testing Support Community Service Activities
013 Staff Development 260 Choral Music Red Cross
015 Principal’s Student Assistance Creative Foods Disaster Relief
020 Staff Appreciation 265 Instrumental Music 690–699 Change Funds
025 PTA Art
030 Cellular Phone Time for Kids 700–749 BUSINESS ACTIVITIES
036 Postage Scholastic News 700 School Store
040 Media Center/Library Weekly Reader 701 Cell Tower Commissions
045 Lost–Damaged Texts (obligations) 270–299  Student Fees/Student Workbooks 709 Student ID’s
050 Checking Interest or Lab Fees by Subject 710 Picture Commissions
055 CIF Interest & Expense 275 Preschool Education Program (PEP) 720–729 Vending Machine
060 MCPS Reimbursement 730–739 
067 Principal’s Supplemental 300–399 G
 RANTS AND Auto Shop
070 SERT DONATIONS Cosmetology & Tech Ed. Revenues
075 ICB 300–369 Grants 750–799 Summer School
090 Guidance/Transcript Fees 310–319 Recognition Awards
091–094 Exam Fees/Expenses 370–399 Donations 800–899 FUND-RAISERS
095 Sales Tax 380 Giant Bonus Bucks 800 Fund-raiser
099 CIF Transfers 381 Target Rebate
382 Box Tops for Education 900–919 PUBLICATIONS
100–198 ATHLETICS 383 Safeway/eScrip 900 Yearbook
100 Athletic Department 901 Yearbook Ads
105 PE Uniforms 400–499 CLUB ACTIVITIES Newspaper
Cheerleaders 400 Student Council/Government Literary Magazine
Pom Pons Activities (SGA)
190 Middle School Athletics 410 Patrols 930–959 M
 EMORIAL/
191 Middle School Intramural Program 411–499 Other Club Activities SCHOLARSHIP
199 K–8 425 Drama Club 930 Memorial
Boys/Girls Phys. Ed.
200–299 CLASS ACTIVITIES 500–599 FIELD TRIPS 980–989 STAFF-OWNED
201–209 Kindergarten 500 Field Trips – General 980 Social Committee
210–219 1st Grade or 6th Grade 501–509 Kindergarten FT Staff Hospitality/Sunshine
220–229 2nd Grade or 7th Grade 510–519 1st Grade FT Refreshments
230–239 3rd Grade or 8th Grade 520–529 2nd Grade FT Retirements
240–249 4th Grade 530–539 3rd Grade FT
540–549 4th Grade FT CASH (ASSET) ACCOUNTS
250–259 5th Grade
550–559 5th Grade FT 990 Petty Cash
or
501–559 Available to Secondary Schools 991 Cash On Hand
201–Class of 2011, 2021
560–569 Additional FT 992 Checking Account
202–Class of 2012, 2022
570–579 Grade Combinations FT 993 Centralized Investment Fund
203–Class of 2013, 2023
204–Class of 2014, 2024 580 All School FT
205–Class of 2015, 2025 590–594 Additional FT
206–Class of 2016, 2026 595–599 Outdoor Ed.
207–Class of 2017, 2027
208–Class of 2018, 2028

* Exchange Accounts year–end balances should equal zero or have an anticipated reimbursement carried as an accounts receivable.
Those accounts without numbers can be assigned by the school as needed.

Financial Manual CHAPTER 20 Independent Activity Funds March 2013

INDEX
20–22
Chart of Accounts—EGES and Quicken
The Independent Activity Fund (IAF) chart of accounts is standardized for consistent reporting, auditing, and visiting
bookkeeper accounting assistance.
1–99 GENERAL SCHOOL ACTIVITIES
Account Name
010 General Fund. For all school activities not
listed elsewhere in the chart of accounts.
011 Meeting Refreshments. There is a fiscal
year spending limit for the combined total
of meeting refreshments and staff appre-
ciation equal to $60 per staff full-time
equivalent (FTE). To determine the fiscal
year total for a school using the per FTE
amount, refer to the previous year’s Schools
at a Glance document and locate the staff
positions section to find the number of FTE
to use as a multiplier.
013  taff Development. This account records
S 045 Lost-Damaged Texts (obligations). Funds
staff development activities. Funding for staff
development must come from sources that
clearly are not student-generated funds.
015  rincipal’s Student Assistance Fund. Used
P 050
by the principal to assist a student in need
under emergency circumstances for any
reason (lunch, school supplies, clothing).
020 Staff Appreciation. This account includes
items such as lanyards, T-shirts, and hats
purchased during the year for the staff as
morale boosters. There is a fiscal year spend-
ing limit for the combined total of meeting
refreshments and staff appreciation equal to
$60 per FTE. Parent Teacher Association
(PTA), sponsors, and/or other sources can
donate money into this account, but that
does not allow a principal to exceed the fis-
cal year spending limit of $60 per FTE.
025  TA. Funds donated by the PTA, not
P is for a disbursement posted to another
designated for a specific purpose, should be
recorded in this account.
030  ellular Phone/Wireless Communica-
C chasing Card system will eliminate the need
tion. Maintaining a separate cell phone
March 2013
INDEX
account is the preferred method to track the
costs for cell phone usage. Reimbursement
by staff members for personal calls should
be posted to this account as well. Accounts
031 to 035 can be used, as needed, if the
school has multiple cell phones. This is a
negative balance account that will be closed
by transfer from the general account 010 at
year end.
036 Postage. A negative balance account that
is reimbursable from Montgomery County
Public Schools (MCPS).
040 Media Center/Library. To track purchases
and income for the media center/library.
collected from students/teachers for lost
or damaged textbooks and other school
obligations.
 hecking Interest. Monthly interest pay-
C
ments received from the school’s checking
account are recorded in this account. This
account is closed to the general fund at year
end.
055  entralized Investment Fund (CIF)
C
Interest and Expenses. Monthly interest
and expenses distributed from the Cen-
tralized Investment Fund are recorded in
this account. This account is closed to the
general fund at year end.
060  CPS Reimbursement. For tracking
M
amounts paid and received for reimbursable
expenses paid from IAF funds, much like
an exchange account. If the reimbursement
account, then the reimbursement needs to
be posted to that account. Using the Pur-
to request MCPS reimbursement.
Montgomery County Public Schools

067 Principal’s Supplemental. For tracking allo-
cations received and expenses paid that high
schools encounter for academic supports,
support for student success, community
outreach, building and grounds improve-
ment, as well as purchasing of items such
as replacement band uniforms and equip-
ment upgrades not included in allocations
to schools. This account is to record only
transactions identified in the April 29, 2008,
memorandum from the chief operating
officer.
070 SERT Rebate. An energy rebate grant pro-
gram awarded for energy conservation in the
schools. This account is unique. The amount
of the grant received is recorded in this
account and as funds are expended, they also
are recorded in this same account. The SERT
office recommends expenditures that further
the environmental goals of the program.
075 I nteragency Coordinating Board (ICB).
The ICB is responsible for the community use
of schools during nonschool hours. The ICB
reimburses schools once a year for mainte-
nance impact due to community use, using
a formula based on hours of community use
scheduled from the preceeding fiscal year.
The annual award is to be used for equip-
ment/maintenance. The ICB directs that each
school must maintain records and receipts
and submit a year-end report to the ICB prov-
ing that the money received was used only
for repairs, improvements, and replacements
or new purchases which positively impacted
community use of schools. This account
is unique in that the amount of the award
received and the funds that are expended are
both recorded in this same account.
090 Guidance/Transcript Fees. This account
records the receipts and disbursements
for activities related to the guidance office,
including transcript fees.
091–094 Exam Fees/Expenses. Use these accounts
to record receipts and expenses related to
external examinations such as International
Baccalaureate (IB), Advanced Placement
(AP), SAT, etc.
Financial Manual CHAPTER 20 Independent Activity Funds
20–23
095 Sales Tax. Record sales taxes collected
on items sold such as yearbooks, work-
books, PE uniforms and other garments,
athletic resale items, school store items,
and fund-raising items. Collected amounts
are to be remitted to the Maryland State
Comptroller.
099 CIF Transfers. Checks written to transfer
funds to the CIF will be recorded in this
account and then voided.
100–199 ATHLETICS
100 Athletic Department. This account is a
consolidation of all expenditures that per-
tain to funding the school’s athletic depart-
ment. Sub-accounts are used to track pur-
chases of equipment and supplies for each
sport, as well as income such as gate receipts,
sales of uniforms, booster clubs, and parking
fees. The MCPS Athletics Unit publishes
these standard four-digit subcodes.
105 Physical Education (PE) Uniforms. Sec-
ondary schools that require use of a stan-
dard uniform record the purchase and sale
of these items in this account.
190–191 Middle School Athletics and Middle
School Intramural Program. These
accounts are used to record receipt of
middle school allocations and expenditures
against them.
199 Boys and Girls PE for Grades K–8. This
account is for all expenditures that pertain
to the school’s PE program. Sub-accounts
are strongly encouraged.
200–299 CLASS ACTIVITIES
(Elementary and Middle Schools) Use these account
numbers, as needed, to record receipts and disbursements
for class activities and for approved supplemental class-
room materials such as Weekly Reader and Time For Kids.
201–209 Kindergarten
210–219 1st Grade or 6th Grade
220–229 2nd Grade or 7th Grade
230–239 3rd Grade or 8th Grade
240–249 4th Grade
250–259 5th Grade
March 2013
INDEX
20–24
(High Schools)
201 Class of 2021
202 Class of 2012
203 Class of 2013
204 Class of 2014
205 Class of 2015
206 Class of 2016
207 Class of 2017
208 Class of 2018
209 Class of 2019
210 Class of 2020
211–258 Available to Secondary Schools. May be
used to record fees and related expenses
for class activities such as food labs, other
Family and Consumer Science (FACs)
projects, and other fees that have been
approved by the Office of School Support
and Improvement.
259  esting Support. Record expenditures
T accept donations that have donor restric-
for assistance to students unable to pay for
SAT, AP, and other external examinations.
Schools may request reimbursement from
MCPS for funds used for exam fee assis-
tance when this account balance is negative.
A detailed tracking record and account
reconciliation is required when requesting
reimbursement of expenditures for exam fee
assistance after MSDE and College Board
fee reductions have been utilized.
260 Choral Music
265 Instrumental Music
270–299 Student Fees. Available for use to record
fees that have been approved by the Office
of School Support and Improvement.
275  reschool Education Program (PEP). Used
P
only by elementary school site locations to
record fees that have been approved by the
Office of School Support and Improvement
and other related expenses for PEP Program
activities.
March 2013
INDEX
300–399 GRANTS AND DONATIONS
300–369 Grants. Maintain a separate grant account to
track the revenue and costs associated with
each grant. Copies of the grant application
and award detailing requirements for the
use of the funds should be on file with the
financial agent. MCPS Form 280-71A: Infor-
mation on School-Based Small Grant Awards,
must be completed at year end for each small
grant. See MCPS Regulation DDA-RA,
Seeking and Securing Federal, State, and Pri-
vate Grants.
310–319 Recognition Awards. Elementary schools
record funds received from the Maryland
State Department of Education (MSDE)
for marked improvement in testing. Trans-
fer funds to the account from which you
want to make expenditures.
370–399 Donations. Maintain a separate donation
account to track the revenue and expendi-
ture associated with each donation. Do not
tions without first seeking counsel from
the Office of the Chief Operating Officer
or the chief financial officer. Do not accept
gifts other than cash. If stocks or bonds are
offered, ensure that they can be sold imme-
diately prior to accepting them. Transfer
funds to the account from which you want
to make expenditures.
380 Giant BonusBucks. Funds from Ahold
Finance based upon parents and others
registering with Giant. The use of the Giant
BonusCard and registering a school pref-
erence earns points for the school. Ahold
Finance distributes the checks directly to
the school. Transfer funds to the account
from which you want to make expenditures.
These are student funds.
381  arget Rebate. Funds are distributed to
T
schools based upon a percentage of use of
the Target credit card by parents and others
who register their school preference with
the store. Transfer funds to the account
from which you want to make expenditures.
These are student funds.
Montgomery County Public Schools

382  ox Tops for Education. Funds are distrib-
B 500–599 FIELD TRIPS
uted to the schools based on the number of
box tops, can labels, and Universal Product
Codes (UPC) from different products, such
as General Mills cereals, Pepperidge Farm
products, and Campbell soups. Transfer
funds to the account from which you want to
make expenditures. These are student funds.
383 Safeway/eScrip. Funds from Safeway based
upon parents and others registering with
Safeway. The use of the Safeway BonusCard
and registering a school preference earns
points for the school. Safeway distributes the
checks directly to the school. Transfer funds
to the account from which you want to make
expenditures. These are student funds.
400–499 CLUB ACTIVITIES
400 Student Council/Government Activities
Account (SGA). This account is used for
SGA activities. Any fund-raising activity
should be recorded in a separate fund-rais-
ing account in the 800 series and a fund-
raiser request and completion report should
be created for each fund-raiser. At the con-
clusion of a fund-raiser, the balance in the
fund-raiser account is then transferred back
to the SGA account using MCPS Form
281-46: Independent Activity Funds-Transfer.
Funds from dances should be accounted for
using the MCPS Form 280-50: Ticket and
Cash Report of Admissions Manager.
410 Patrol Activities. This account is used for
school patrol activities.
411–499 Other Club Activities. These accounts
are used to track expenditures in Home-
work, Art, Math, Photography, and other
activity clubs. If there are any fund-raising
activities, they should go into separate
fund-raising accounts in the 800 series and
a fund-raiser request and completion report
should be completed for each fund-raiser.
Any money earned or any losses from the
fund-raiser are then transferred back to the
club account using MCPS Form 281-46:
Independent Activity Funds-Transfer.
425 Drama Club. This account is used for
drama club activities.
Financial Manual CHAPTER 20 Independent Activity Funds
20–25
500 General Field Trips. This account is used
to close out completed field trips during
the current year. The field trip accounts can
have positive or negative balances. At year
end, individual field trips (501-599) that are
completed with all outstanding bills paid have
their balances closed to this account. At no
time should a field trip that is not complete be
closed to this account, not even at year end.
501–599 Field Trip by Grade. Each field trip should
have its own account number and should
be accounted for by grade/trip. A file for
each trip is kept by the school administra-
tive secretary or financial assistant with
the following records: Field-Trip Approval
Form, worksheet for the cost of the field trip,
completed MCPS Form 280-41: Field Trip
Accounting, Activity Reports signed by the
sponsor, and Reconciliation Reports for the
General Ledger account corresponding to the
field trip account.
570–579 Grade Combination Field Trips. These
accounts are used to track expenditures
for field trips involving multiple grades at a
school and follow the same procedures as
those used for accounts 501–559.
580 All School Field Trips. This account is
used to track expenditures for field trips
involving all grade levels at a school and fol-
lows the same procedures as those used for
accounts 501–559.
595–599 Outdoor Education. Outdoor Education
is considered a field trip. Track any extra
fees for optional activities and supplies not
provided by the Outdoor Education office
in a separate account.
600–699 EXCHANGE ACTIVITIES
600 Exchange Activities. This account is used
strictly for one-time only transactions with
receipts equaling disbursements and normal
year-end balance of zero. For example, funds
collected for a charity are disbursed in their
entirety to the charity. Other examples
include checks erroneously made payable
to a teacher rather than the school or a staff
member erroneously purchases a personal
March 2013
INDEX
20–26
item included with an order for the school
and must reimburse the school for the per-
sonal item. If this account should have a bal-
ance at year end, the amount will be listed
as either an account receivable or payable
depending on the nature of the transaction.
690–699 Change Funds. May be established to
track separate change funds for activities
(athletics, drama productions, or school
stores) that will be closed out at the end of
the activity year. These accounts will have
a negative balance indicating the amount
of the change fund issued, and a balance of
zero when the funds are returned for close
out of the activity.
700–749 BUSINESS ACTIVITIES
700 School Store. This account records the
income and expenses of operating a school
store. The expenses should be limited to
only purchases for resale and the sales tax
paid on merchandise sold. No salaries or
stipends should be paid from this account.
701  ell Tower Commissions. This account
C
is used for recording funds received by the
host school and other schools within a clus-
ter as part of the commissions from the Cell
Tower Program.
709  tudent Identification (ID) Cards. Stu-
S type activity. The principal executes a con-
dents are charged for a replacement ID card.
The revenue to replace the ID cards for
students will go into this account.
710  ictures Commissions. Only the com-
P beyond three years duration. Yearbooks
mission revenue derived from the contract
with the portrait vendor should be recorded
in this account. The income may be trans-
ferred during the year to other accounts
that directly benefit students as necessary
such as yearbooks to reduce the cost of the
yearbook to students.
720–729  ending Machines (Beverage and Snack).
V for the purpose of completing the Profit and
Only the commission revenue derived from
the central contract with the beverage and
snack vendor should be recorded in these
accounts. Separate accounts should be
maintained for beverage and snack vend-
ing. Sub-accounts may be used to record
March 2013
INDEX
revenue from staff machines separately from
that of other machines, or separate accounts
can be maintained. The income may be
transferred to other accounts during the
year as necessary. Vending machine income
is not to be used to support staff unless
the revenue was generated from machines
located in the school staff lounge.
750–799  ummer School. These accounts will be
S
used to keep track of income and expenses
related to summer school programs.
800–899 FUND-RAISERS
800 Fund-raiser. Each fund-raiser will be
assigned a new account number between
800 and 899. The Guidelines for Sponsoring
an Independent Activity Fund Fund-raiser
contains the instructions for a successful
fund-raiser. Each account will have recorded
the income and expenses related to one
fund-raiser. The financial agent should make
sure that the money that has been collected
reconciles to what was purchased and sold.
Any salable inventory remaining at the end
of the fiscal year will be reported as inven-
tory on the IAF year end report.
900–929 PUBLICATIONS
900 Yearbook. This is considered a business-
tract from the publisher for the production
of the yearbook. The contract never should
be renewable automatically or extend
sales and expenses are accounted for in
this account. It is recommended that a new
account be set up for the next year’s year-
book if the current year is not closed yet.
This suggestion is helpful when sponsors
send students to workshops for the follow-
ing year, or the yearbook bill is received late.
It is much easier to track expenses and sales
Loss Statement if the years are not com-
mingled. Losses will need to be offset by
transfer of funds from the General Account
or other accounts.
Montgomery County Public Schools

901 Yearbook Ads. This account is to track
income from yearbook advertisements.
 chool Newspaper. This is considered to be
S
a business-type activity. Since the newspa-
per is not sold, the sale of advertisements is
usually the only source of revenue. Expen-
ditures for operating the school newspaper
are recorded in this account. The newspaper
usually operates at a loss if the school is not
aggressive with advertising sales. A profit
and loss statement at year end should be
completed. Losses will need to be offset by
transfer of funds from the General Account
or other accounts.
Literary Magazine. This is considered to be
a business-type activity. Since the magazine
is not sold, the sale of advertisements is
usually the only source of revenue. Expen-
ditures for operating the literary magazine
are recorded in this account. The magazine
usually operates at a loss if the school is not
aggressive with advertising sales. A profit
and loss statement at year end should be
completed. Losses will need to be offset by
transfer of funds from the General Account
or other accounts.
930–959 MEMORIAL/SCHOLARSHIP
930 Memorial. A separate account should be
established for each memorial or scholar-
ship fund maintained by a school. Original
documentation indicating the donor’s intent
for expenditures from a memorial or schol-
arship fund must be retained by the school
to substantiate that the donor’s directives
are being followed. Before accepting any
restricted funds, please seek counsel from
the Office of the Chief Operating Officer.
Schools should discuss alternate uses of
funds with the appropriate parties in the
event funds raised do not reach the antici-
pated levels.
Financial Manual CHAPTER 20 Independent Activity Funds
20–27
980–989 STAFF-OWNED
980–989 Staff Committee Funds. These funds are
to be self-sufficient with revenue derived
from dues paid by the school staff for the
purpose of sending flowers or cards and
funding other staff activities. The funds pass
through the IAF, but they are not supple-
mented from the IAF. The use of the IAF
checking account is for convenience of the
staff and to avoid the expense of opening
their own checking account.
CASH (ASSET) ACCOUNTS
990 Petty Cash. Schools may need small
amounts of cash for reimbursement pur-
poses to eliminate writing checks for small
amounts. See Chapter 7, Cash Control of
School Funds, for guidance on cash handling.
991  ash on Hand. This account is the holding
C
account for your cash receipts. After making
a deposit, the account should equal zero. If
there is still a balance in the Cash on Hand
account after making a deposit, there is a
problem in your cash reconciliation. This
account must equal zero at month end and
year end.
992  hecking Account. This is the account
C
that is used to record the bank deposits and
disbursements for the school’s checking
account.
993  entralized Investment Fund (CIF). This
C
is the account where transfers into and
withdrawals out of the CIF are recorded.
The activity for this account is done via a
transfer and not as a check or a receipt. See
Chapter 22, Centralized Investment Fund, for
more information regarding the CIF.
March 2013
INDEX
20–28
APPENDIX B
Bank Reconciliation Process—EPES
Independent Bank Reconciliation in EPES. A staff
member other than the financial specialist (FS) must
perform the bank reconciliation independent (manual)
from the IAF accounting software.
The monthly bank statement is opened and reviewed
by the principal, with any unusual transactions noted.
After review, the principal gives the original statement
to the school staff member who will perform the manual
reconciliation. A copy of the bank statement also is given
to the school FS. All separate notifications received from
the bank (ex: fees, interest, adjustments/corrections,
ACH deposits, and NSF checks) should be recorded in
EPES (IAF accounting system) before the reconciliation
is performed.
Materials
Financial specialist (FS) provides to staff member:
• Original bank statement
• List of outstanding checks (before canceling any for
the month)
• General Ledger (GL) Report (highlight account
992, Checking, to assist staff member)
• GL Transfers for current month (this is the list of
deposits)
• List of GL Journal Adjustments (if used by school
to record bank statement activity)
• List (sequential) of receipts for current month
(return to FS to retain in Monthly Report file)
• List (sequential) of disbursements for current month
(return to FS to retain in Monthly Report file)
• Folder(s) with voided checks/receipts
Procedure
Staff member verifies the following:
• GL Transfer amount equals total receipts (+ or -
bank adjustments, if Journal Adjustments not used).
• Checks or receipts that have been voided should
have a zero balance indicated on the List of Checks/
Receipts, and all three parts of each document must
be present. Voided, lost, or stale checks should have
a negative balance.
March 2013
INDEX
Staff member using the bank statement:
• Places a check mark next to deposits and checks on
EPES GL Transfers and outstanding checks lists
that appear on the bank statement. Marks these
same items on the bank statement, as well.
• I f Journal Adjustments are used, places a check mark
next to transactions recorded to GL Account 992
(ignore transactions recorded to other accounts).
Marks these same items on the bank statement.
• Items remaining unchecked on outstanding checks
list become the new outstanding checks list. Runs
an adding machine tape or spreadsheet with check
number and amount to calculate the total. Attach to
the reconciliation.
• Items remaining unchecked on the GL Transfer list
are Deposits in Transit. Calculate the total.
• If any items on the bank statement other than bank
fees or credit memos do not have a check mark next
to them, they are reconciling items to EPES that the
staff member must resolve immediately with the FS.
Entries may need to be recorded in EPES. Calculate
the total of any bank fees and credits that remain
unmarked.
Using the back of the bank statement:
• Follow the instructions provided on the bank state-
ment and, using the totals calculated in the prior
step, reconcile the bank statement balance to the
EPES checking account balance as reported on the
last page of the Ledger Report.
• If there are any bank fees and credits that have not
been recorded in EPES yet, these are reconciling
items that will have to be recorded in EPES to
reconcile EPES to the bank statement. (Adjust the
EPES checking account balance first, and then com-
pare the result to the bank statement balance.) This
should be done after the manual reconciliation. This
is the purpose of the manual reconciliation (manual
preparer should not have access to adjust EPES).
Montgomery County Public Schools
 20–29

• Staff member signs and dates the bank statement to

indicate the account balance reconciles to the IAF
General Ledger Report checking account balance.
Meanwhile, the FS completes the same tasks in EPES,
using a copy of the bank statement, and prints the bank
reconciliation and final outstanding check list from
EPES. The financial specialist signs and dates the copy of
the bank statement to indicate the account balance recon-
ciles to the IAF General Ledger Report checking account
balance. The principal compares the results of the two
reconciliations; any differences must be resolved. The
principal signs/dates both reconciliations, which become
part of the Monthly Report file. All the materials used in
the preparation of the manual bank reconciliation also
become part of the Monthly Report file.
These tasks must be completed before the final monthly
reports can be reviewed by the principal. The principal’s
final review of all reports is due the 20th of the follow-
ing month. Completing the bank reconciliation by this
deadline enables the school to adjudicate any bank errors
in a timely manner.

Financial Manual CHAPTER 20 Independent Activity Funds March 2013

INDEX
20–30

APPENDIX C
APPENDIX C
CHART OF ACCOUNTS (COA)
March 2013

Chart of Accounts—SFO
SchoolFunds Online (SFO)

NOTE: The purpose of the Independent Activity Fund (IAF) Chart of Accounts (COA) is to provide uniformity for accounting and reporting of IAF
transactions. This COA is intended as a reference for the various account series and does not display all accounts available in SFO as they are too
numerous to publish in the Financial Manual. The entire COA for each school level is available in the SFO software.
Account # Series Account Name Account Description
0010 - 0130 GENERAL SCHOOL
Revenue or expense for activities not listed elsewhere in the COA. If there is an account that better
0010.0000 0 General
describes an expenditure, transfer funds to that account prior to making the disbursement.
0013.0000 0 Staff Devel Staff development activities. Source of revenue cannot be account #10 or any other student funds.
Assistance to students in need for emergency circumstances to provide items such as lunch, school
0015.0000 0 Studnt Assist
supplies, clothing, etc.
0017.0000 0 Studnt Recognition Student recognition expenditures.
Staff appreciation recognition for items of nominal dollar value such as lanyards, T-shirts, hats, etc. The
0020.0000 0 Staff Apprec fiscal year total amount expended in this account plus that of account #21 cannot exceed $60 per FTE. A
school's number of FTE is found in the current Schools at a Glance document on the MCPS website.
Light refreshments for staff meetings. The fiscal year total amount expended in this account plus that of
0021.0000 0 Staff Food account #20 cannot exceed $60 per FTE. A school's number of FTE is found in the current Schools at a
Glance document on the MCPS website.
0024.0000 0 Studnt Food Student food expenditures.
0025.0000 0 PTA/PTSA Funds received from PTA or PTSA. Transfer funds to appropriate account(s) prior to disbursement.
0026.0000 0 Volunteer Apprec Volunteer appreciation expenditures.
0027.0000 0 Beautification School expenditures to enhance the appearance of the building or grounds.
Cellular phone expenses for authorized school purposes. Since MCPS issues principals a Blackberry or cell
phone and pays all expenses, no payments for this service will be made from the IAF for a principal. The
0030.0000 0 Cell Phone
negative balance accumulated in this account will be eliminated at fiscal yearend by transfer of funds from
the general account.
0035.0000 0 Technology Computer-based equipment or software license.
0036.0000 0 Postage Postage expenditures. The negative balance in this account is reimbursable from MCPS.
0040.0000 0 Media Ctr Revenue or expense for the media center.
0043.0000 0 Media Ctr Oblig Funds received to reimburse the school for lost or damaged media items.
0044.0000 0 Cafeteria Oblig Funds received to reimburse the school for cafeteria obligations.
0045.0000 0 Textbook Oblig Funds received to reimburse the school for lost or damaged textbooks.
0047.0000 0 Calculator Oblig Funds received to reimburse the school for lost or damaged calculators.
Funds received for which there is no other COA account to better describe the loss of or damage to school
0048.0000 0 Loss/Damage Oblig
property.
Monthly interest received as indicated on bank statement. Transfer of balance at fiscal yearend may be
0050.0000 0 Checkng Interest made to account(s) that do not record student generated funds. Transfer to #9800 series staff accounts
is prohibited.
Monthly expense charged as indicated on bank statement. Transfer negative balance at fiscal yearend to
0051.0000 0 Checkng Expense
the general account.
Monthly interest received as indicated on Escrow Manager statement. Transfer of balance at fiscal yearend
0055.0000 0 CIF Interest may be made to account(s) that do not record student generated funds. Transfer to staff accounts is
prohibited.
Monthly expense charged as indicated on Escrow Manager statement. Transfer negative balance at fiscal
0056.0000 0 CIF Expense
yearend to the general account.
Expenditure or receipt of funds for reimbursable expenses previously paid from IAF funds. If the
0060.0000 0 MCPS Reimb reimbursement is for an expenditure recorded in another account, transfer the reimbursement to that
account. Use of the Purchase Card will eliminate the need to request for MCPS reimbursement.
Positive Behavioral Interventions and Supports is a framework for creating safer and more effective
0065.0000 8 PBIS Reimb schools. Reimbursement requests for PBIS expenditures are submitted to the Department of Student
Services.
Incentive funds schools receive from the SERT office for conserving energy, reducing waste, and increasing
recycling. Funds can be used to educate students and staff about the importance of conservation,
0070.0000 0 SERT
environmental stewardship, and sustainability. Contact the SERT program manager for additional guidance
on use of funds.
Interagency Coordinating Board (ICB) award paid to schools for community use. The ICB will not release an
0075.0000 0 ICB Annual Award
award to a school for the next fiscal year until the prior-year documentation is received.
User groups pay the ICB Community Use of Public Facilities (CUPF) office for use of school equipment.
0076.0000 0 ICB Equip Use
CUPF reimburses high schools quarterly, and elementary and middle schools semiannually.
User groups pay the ICB CUPF office for outside use premium (OUP) overtime hours worked by MCPS
0080.0000 0 ICB Payables
employees.
Independent Activity Payment (IAP) for hours worked at a school event. School submits hours worked at
0085.0000 0 MCPS Payables
premium (SEP) overtime rate to ERSC. School is invoiced by controller division for MCPS reimbursement.
Sales taxes due on items sold such as yearbooks, PE uniforms and other garments, school store items, fund-
0095.0000 0 Sales Tax
raising items, etc. Account balance at yearend is paid to the Maryland Comptroller annually in July.
Checks written to transfer funds from checking to CIF are recorded in this account. Checks are then
0099.0000 0 CIF Transfers voided as these transfers between checking account and CIF savings account neither increase nor decrease
the total amount of a school's asset accounts.
Cell tower commission revenue. Revenue is based on a sharing formula for consortium and host schools
with towers. Consortium schools receive two payments; one of which is to be shared with schools within
0100.0000 0 Cell Tower_Comm
their respective consortium. Transfer of balance at fiscal yearend may be made to account(s) that do
not record student generated funds. Transfer to staff accounts is prohibited.
Commission and bonus revenue received from the portrait vendor. Prior to making any expenditure,
0110.0000 0 Stdnt Pictures_Comm
transfer funds to account(s) that benefit only students.
Vending machine commission revenue identified as generated by student purchases. Funds are transferred
0120.0000 0 Vendng_Studnt_Comm
into student benefiting account(s) prior to expenditure.

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APPENDIX C March 2013

CHART OF ACCOUNTS (COA)
SchoolFunds Online (SFO)

Account # Series Account Name Account Description

Vending machine commission revenue identified as generated by staff purchases. Funds are transferred
0130.0000 0 Vendng_Staff_Comm into benefiting account(s) prior to expenditure. Benefiting accounts may be in the 9800 - 9850 number
range.
1000 - 1910 ATHLETICS
Consolidation of all revenue and expense that pertain to a school's athletic department. Sub-accounts are
1000.0000 1 Athletic Dept used to record purchases of equiment and supplies for each sport, as well as income such as gate receipts,
sales of uniforms, booster clubs, and parking fees.
1000.1001 - 1000.1710 1 Boys Team Sports
1000.2001 - 1000.2710 1 Girls Team Sports
1000.3101 - 1000.3910 1 Coed Team Sports
1000.4001 - 1000.4110 1 Support Groups
1000.5011 -
1 All Sports Expenses
1000.5023
1000.5050 -
1 Misc Athletic Expenses
1000.5061
1000.6000 1 ATH__MCPS Allocation
1000.6091 1 Stdnt Parking Fees Receipts received from sale of student parking passes.
1000.6093 1 ATH__MCPS Supplement
1000.6094 1 ATH__Corollary Supplement
1000.7050 -
1 Gate Rcpts Required
1000.7062
1000.8063 -
1 Gate Rcpts Optional
1000.8066
1000.9050 1 ATH Dept FR
1000.9051 1 ATH Concessions
1000.9052 1 ATH Dept Resale
1000.9053 1 Stdnt Purchase_Uniform
1000.9054 1 Host Tourn/Invit/Relay
1000.9055 1 MPSSAA Playoff_Gate
1000.9056 1 MPSSAA MCPS Reimb
1000.9057 1 ATH_Booster Club
1000.9058 1 ATH_Donations
1000.9059 1 ATH_Other Income
1000.9087 1 ATH_School Store Rev
1900.0000 1 ATH_Middle School
1910.0000 1 ATH_MS.Intramural Prog
2010 - 2930 BUSINESS ACTIVITIES Receipts and disbursements associated with the respective business activity account name.
2010.0000 2 Guid/Transcript Fees Receipts and disbursements related to the guidance office, including transcript fees.
2100.0000 2 Exam Fees AP Receipts and disbursements related to Advance Placement (AP) exams.
2110.0000 2 Exam Fees IB Receipts and disbursements related to International Baccalaureate (IB) exams.
2120.0000 2 Exam Fees PSAT Receipts and disbursements related to Preliminary Scholastic Assessment Test (PSAT) exams.
2130.0000 2 Exam Fees Other Receipts and disbursements related to other external exams.
This account may have a negative balance until allocations are received for reimbursement of the
2150.0000 2 Exam Waiver/MCPSReimb
expenditures.
2175.0000 2 Testing Receipts and disbursements related to testing for which there is no other COA descriptive account.
Receipts and disbursements from purchase and resale of merchandise operating a school store. The
2200.0000 2 School Store portion of revenue from the resale of merchandise attributed to Maryland sales tax will be transferred to
account 0095.0000, Sales Tax.
2210.0000 2 PE Clothing Receipts and disbursements related to PE clothing.
Receipts and disbursements related to agenda books. It is a violation of MCPS fiscal policy to sell agenda
2220.0000 2 Agenda Books
books to students if the agenda books were purchased with operating budget funds.
2240.0000 2 Stdnt ID's Receipts from replacement of student ID cards.
2300.0000 2 Subscript_Classroom
2300.0010 2 Time for Kids
2300.0015 2 Scholastic News
2300.0020 2 Weekly Reader
2400.0000 2 Subscript_Staff
2500.0000 2 Trades/Technical
2900.0000 2 LSP_Instructnl Receipts and disbursements related to Local School Summer Program - curriculum related
2910.0000 2 LSP__Camp Receipts and disbursements related to Local School Summer Program - recreational
2915.0000 2 SS_Reg Summer School Receipts and disbursements related to Summer School Regional.
2920.0000 2 SS_ELO
2925.0000 2 ESY-Extend School Yr
2930.0000 2 SS_MS Orientation Receipts and disbursements related to Middle School Orientation.
3001 - 3950 CLASS ACTIVITIES Receipts and disbursements associated with the respective class activity account name.
3001.0000 3 Grade_1
3002.0000 3 Grade_2
3003.0000 3 Grade 3
3004.0000 3 Grade 4
3005.0000 3 Grade 5
3006.0000 3 Grade 6
3007.0000 3 Grade 7
3008.0000 3 Grade 8
3009.0000 3 Kindergarten
3010.0000 3 Pre K
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APPENDIX C March 2013

CHART OF ACCOUNTS (COA)
SchoolFunds Online (SFO)

Account # Series Account Name Account Description

3030.0000 3 Headstart
3040.0000 3 Title I
3050.0000 3 PEP Preschool Education Program
3011.0000 3 Class of_2011 Prior to graduation, class sponsor obtains written directive of the class for expending any account balance.
3012.0000 3 Class of_2012 Prior to graduation, class sponsor obtains written directive of the class for expending any account balance.
3013.0000 3 Class of_2013 Prior to graduation, class sponsor obtains written directive of the class for expending any account balance.
3014.0000 3 Class of_2014 Prior to graduation, class sponsor obtains written directive of the class for expending any account balance.
3015.0000 3 Class of_2015 Prior to graduation, class sponsor obtains written directive of the class for expending any account balance.
3016.0000 3 Class of_2016 Prior to graduation, class sponsor obtains written directive of the class for expending any account balance.
3017.0000 3 Class of_2017 Prior to graduation, class sponsor obtains written directive of the class for expending any account balance.
3018.0000 3 Class of_2018 Prior to graduation, class sponsor obtains written directive of the class for expending any account balance.
3019.0000 3 Class of_2019 Prior to graduation, class sponsor obtains written directive of the class for expending any account balance.
3020.0000 3 Class of_2020 Prior to graduation, class sponsor obtains written directive of the class for expending any account balance.
3250.0000 3 Class Activity/Other
3300.0000 3 NHS Receipts and disbursements related to National Honor Society.
3350.0000 3 NJHS Receipts and disbursements related to National Junior Honor Society.
3400.0000 3 Honor Soc/Other Receipts and disbursements related to Other Honor Society.
3500.0000 3 SGA Receipts and disbursements related to Student Government Association.
3505.0000 3 It's Academic
3507.0000 3 AcademicTeam/Other
3510.0000 3 Patrols
3515.0000 3 Drama Club
3520.0000 3 Key Club
3525.0000 3 SADD
3530.0000 3 Club/Other
3531.0000 3 Promotion
3535.0000 3 Graduation
3900.0000 3 YRBK_Current Yr
3905.0000 3 YRBK_Ads/Current Yr
3910.0000 3 YRBK_Prev Yr
3920.0000 3 Newspaper/Current Yr
3930.0000 3 Newspaper/Prev Yr
3940.0000 3 Literary Mag
3950.0000 3 Publication_Othr
Receipts and disbursements associated with the respective curricular fee account name. OSSI must
4010 - 4105 CURRICULAR FEES
approve of each activity fee before a student is required to pay it. These accounts should not accumulate
4010.0000 - 4018.9999 4(01) Art
4020.0000 - 4027.9999 4(02) Band
4030.0000 - 4037.9999 4(03) Choral Music
4040.0000 - 4047.9999 4(04) Career and Tech Education
4050.0000 - 4054.9999 4(05) FACS
4060.0000 - 4064.9999 4(06) Foods
Instrumental Music /
4070.0000 - 4076.9999 4(07)
Orchestra
4080.0000 - 4087.9999 4(08) ROTC
4093.0000 - 4095.9999 4(09) Science
4100.0000 - 4105.9999 4(10) Trades
5000-5200 FIELD TRIPS Receipts and disbursements associated with the respective field trip account name.
5000.0000 5 Gen_Field Trip
5010.0000 5 FT_Kindergarten
5011.0000 5 FT_GR_1
5012.0000 5 FT_GR 2
5013.0000 5 FT_GR 3
5014.0000 5 FT_GR 4
5015.0000 5 FT_GR 5
5016.0000 5 FT_GR 6
5017.0000 5 FT_GR 7
5018.0000 5 FT_GR 8
5019.0000 5 FT_Combo GR
5020.0000 5 FT_All School
5030.0000 5 Outdoor Ed_Fees
5031.0000 5 Outdoor Ed_Other Exp
5033.0000 5 College Fair
5035.0000 5 FT_Course Related
5040.0000 5 FT_JROTC
5045.0000 5 FT_Clubs
5050.0000 5 FT_Other
5100.0000 5 FT_Magnet Program
5200.0000 5 FT_Signature Program
6010-6300 DEPARTMENT ACCOUNTS Receipts and disbursements associated with the respective department account name.
6005.0000 6 DEPT_Guidance
6010.0000 6 DEPT_English
6011.0000 6 DEPT_Math
6012.0000 6 DEPT_Science
6013.0000 6 DEPT_Social Studies
6014.0000 6 DEPT_Foreign Lang
Page 3 of 5

March 2013 Montgomery County Public Schools

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APPENDIX C March 2013

CHART OF ACCOUNTS (COA)
SchoolFunds Online (SFO)

Account # Series Account Name Account Description

6015.0000 6 DEPT_Music General
6016.0000 6 DEPT_Music Choral
6017.0000 6 DEPT_Music Band
6018.0000 6 DEPT_Music Inst
6019.0000 6 DEPT_Art
6020.0000 6 DEPT_Bus Ed
6021.0000 6 DEPT_Drama
6022.0000 6 DEPT_Tech Ed
6023.0000 6 DEPT_PE
6025.0000 6 DEPT_Special Ed
6027.0000 6 DEPT_SCB
6030.0000 6 DEPT_ESOL
6050.0000 6 DEPT_Dept Acct/Others
6100.0000 6 DEPT_GR LVL TEAM
6010.0000 6 DEPT_Kindergarten
6011.0000 6 DEPT_GR_1
6012.0000 6 DEPT_GR_2
6013.0000 6 DEPT_GR 3
6014.0000 6 DEPT_GR 4
6015.0000 6 DEPT_GR 5
6016.0000 6 DEPT_GR 6
6017.0000 6 DEPT_GR 7
6018.0000 6 DEPT_GR 8
6019.0000 6 DEPT_Combo Grades
6200.0000 6 MAGNET PROGM
6300.0000 6 SIGNATURE PROGM
Receipts and disbursements associated with the respective fund raiser account name. Refer to the
Guidelines for Sponsoring an Independent Activity Fund Fund-Raiser for instructions for conducting a
successful fund-raiser. At the conclusion of a fund-raiser, the sponsor will provide a profit and loss
7000-7560 FUND RAISERS
statement to the financial agent to reconcile the money collected with what was purchased and sold. Any
profit from a fund-raiser will be transferred to the benefiting account prior to expenditure. Any salable
inventory remaining at the end of the fiscal year will be reported as inventory on the IAF yearend report.
7000.0000 7 FR_General
7010.0000 7 FR_Class
7020.0000 7 FR_Club
Receipts received from fund-raiser activities conducted with prior principal approval by non-athletic booster
7021.0000 7 Boosters/Non_Athletic
organizations.
7030.0000 7 FR_All School
7035.0000 7 FR_Book Fair
7040.0000 7 FR_SGA
7043.0000 7 FR_Key Club
7045.0000 7 FR_Staff
7050.0000 7 FR_Other
7100.0000 7 FR_Athletics
7200.0000 7 FR_Magnet Program
7300.0000 7 FR_Signature Program
Receipts and disbursements related to concession activities. Transfer profits from these fund-raising
7400.0000 7 FR_Concessions
activities to the benefiting account.
Receipts and disbursements related to drama production activities. Transfer profits from these fund-
7500.0000 7 Drama Productions
raising activities to the benefiting account.
Receipts and disbursements related to homecoming activities. Transfer profits from these fund-raising
7525.0000 7 Homecoming
activities to the benefiting account.
Receipts and disbursements related to prom activities. Transfer profits from these fund-raising activities
7530.0000 7 Prom
to the benefiting account.
Receipts and disbursements related to club activities. Transfer profits from these fund-raising activities to
7540.0000 7 Club Event
the benefiting account.
Receipts and disbursements related to all-school events. Transfer profits from these fund-raising events to
7550.0000 7 All School Event
the benefiting account.
Receipts and disbursements related to other events for which there is no other COA account description.
7560.0000 7 Other Event
Transfer profits from these fund-raising events to the benefiting account.
8100-8500 GRANT / DONATION Receipts and disbursements associated with the respective award, grant, or donation account name.
8100.0000 8 Recog Awards Awards received that recognize school achievement.
A small grant is a grant that is less than $20,000, does not require restricted annual financial reporting,
does not require cash or in-kind match nor a commitment of MCPS resources, and is not used to employ
personnel, other than substitutes, in the schools during the regular school day. Upon receipt of a small
8200.0000 8 Small Grants
grant, the financial agent will submit a copy of completed MCPS Form 280-71A, Information on School-
Based Small Grant Award, to the Internal Audit Unit and retain the original in the school finance office. See
MCPS Regulation DDA-RA, Seeking and Securing Federal, State, and Private Grants.
Do not accept restricted donations without the advice of legal council from the Office of the Chief
Operating Officer. Do not accept gifts other than cash. If stocks or bonds are offered, ensure that they
8300.0000 8 Donations
can immediately be converted to cash prior to accepting them. Transfer funds to the account from which
you want to make expenditures.
These are student funds received from Ahold Finance based upon parents and others registering with
Giant. The use of the Giant BonusCard and registering a school preference earns points for the school.
8310.0000 8 Giant Bonus Bucks
Ahold Finance distributes the checks directly to the school. Transfer funds to the account from which you
want to make expenditures. Page 4 of 5

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APPENDIX C March 2013

CHART OF ACCOUNTS (COA)
SchoolFunds Online (SFO)

Account # Series Account Name Account Description

These are student funds distributed to schools based upon a percentage of use of the Target credit card
8320.0000 8 Target Rebate by parents and others who register their school preference with the store. Transfer funds to the account
from which you want to make expenditures.
These are student funds are distributed to the schools based on the number of box tops, can labels, and
8330.0000 8 Box Tops for Ed Universal Product Codes (UPC) from different products, such as General Mills cereals, Pepperidge Farm
products, and Campbell soups. Transfer funds to the account from which you want to make expenditures.
These are student funds from Safeway based upon parents and others registering with Safeway. The use
of the Safeway BonusCard and registering a school preference earns points for the school. Safeway
8340.0000 8 Safeway/eScrip
distributes the checks directly to the school. Transfer funds to the account from which you want to make
expenditures.
8350.0000 8 MerchDonatn/Othr
An account should be established for each memorial fund maintained by a school. The school will obtain
written documenation from the donor indicating the intent for expenditures as well as alternative uses of
8400.0000 8 Memorial Accts the funds in the event that the amount raised during a fiscal year no longer reaches anticipated levels for
the memorial to continue for the purpose as originally established. The school will retain the donor's
original documentation for auditors to verify that the donor's directives are being followed.
An account should be established for each scholarship fund maintained by a school. The school will obtain
written documenation from the donor indicating the intent for expenditures as well as alternative uses of
8500.0000 8 Scholarship Accts the funds in the event that the amount raised during a fiscal year no longer reaches anticipated levels for
the scholarship to continue for the purpose as originally established. The school will retain the donor's
original documentation for auditors to verify that the donor's directives are being followed.
9000-9200 EXCHANGE
For charitable activities, exchange accounts are used to record activity transactions in which the total
amount of receipts collected equals the total amount of the disbursement at the conclusion of the
collection period. Change funds are exchange accounts in which the amount issued by the financial agent
9000.0000 9 Exchange is the exact amount returned to the financial agent at the conclusion of the need for the change fund. An
exchange account may also be used if a check is erroneously made payable to a staff member rather than
to the school, or if a staff member erroneously purchases a person item included in a school order and
must reimburse the school for the personal item.
9010.0000 9 Community Service Activty
9020.0000 9 Pennies for Patients
9025.0000 9 Hoops4Hearts
9030.0000 9 Red Cross
9035.0000 9 Disaster Relief
9040.0000 9 March of Dimes
9050.0000 9 Charity Drive/Other
An amount of funds issued to make change at an admission event or business activity. Change funds will
9200.0000 9 Change Funds be returned to the financial agent to be closed out at the conclusion of one-time events and at the end of
the activity year for all other change funds.
Accounts funded by receipts contributed or generated by school staff members to include donations made
to staff. These funds are included in the school's IAF for the convenience of staff to avoid the expense of
9800-9850 STAFF maintaining their own individual checking account. However, the principal must approve expenditure of
these funds in accordance with IAF procedures. Staff vending commission receipts may be transferred into
these accounts.
Receipts contributed or generated by staff activity and disbursements from this account for staff social
9800.0000 9 STAFF_Social Cmttee
committee purposes.
Receipts contributed or generated by staff activity and disbursements from this account to recognize
9810.0000 9 STAFF_Hosp/Sunshine
personal staff events.
Receipts contributed or generated by staff activity and disbursements from this account for staff wellness
9820.0000 9 STAFF_Wellness
purposes.
Receipts contributed or generated by staff activity and disbursements from this account to recognize staff
9830.0000 9 STAFF_Retirements
retirements.
Receipts contributed or generated by staff activity and disbursements from this account for other staff
9850.0000 9 STAFF_Accts/Other
purposes.
9900-9930 ASSET ACCOUNTS
Small amount of cash, usually no more than $100, used in lieu of writing checks to reimburse for purchases
9900.0000 9 PETTY CASH
of nominal amounts. The amount of petty cash is included in a school's cash holding authority.
Account into which funds received are deposited and from which disbursements are made by writitng
9920.0000 9 CHECKING ACCT
checks. Receipt and disbursement of funds may also occur via ACH.
Centralized Investment Account (CIF) is a savings account where excess funds are deposited to earn
interest. Deposits into the CIF are made by check and return of funds from the CIF occur via ACH into a
9930.0000 9 CIF
school's checking account. Transactions between the checking account and CIF are recorded as transfers.
These transfers neither increase nor decrease the combined total of a school's asset accounts.

Page 5 of 5

March 2013 Montgomery County Public Schools

INDEX
 20–35

APPENDIX D
Posting Electronic Payment Receipts—SFO
Independent Activity Fund (IAF) Accounting With

Posting Electronic Payment Receipts

Entries other than checks and receipts that need to be posted to the books are entered as JOURNAL ENTRIES. By
using the Journal Entry functions, you are guaranteed to post the correct “debit” and “credit” entries because
SchoolFunds Online posts these entries automatically! After saving each journal entry, a Journal Entry Proof Sheet
will print providing printed documentation for each journal entry posted.

Journal Entries for Bank Interest/Other Credits

This journal entry may be used to post interest earned on a checking account and/or any interest earned on CDs or
other investment accounts. It may also be used to post other credits.
Field Name: Explanation (All fields are required except Additional Comments).
Transaction Date: Automatically inserts the statement ending date from the bank reconciliation screen (Step #1).
Change this date if necessary.
Amount: Enter the amount of the bank interest or other credit, ACH payment, etc.
Post to Account: Select the account number to which the funds should be posted.
Offset Account: Automatically inserts the correct cash (checking) account number to be used as an offset. This
account may be changed if posting savings or investment account interest.
Reference: Specify the source of the funds (e.g., Safeway, MCPS Reimb, etc.)
Additional Comments: Enter any additional comments/description for this JE not entered in the reference field. This
information will only print on the proof sheet.
Bank Name and Account: Automatically inserts the bank name and account number previously entered on the My
Profile screen. The bank name and account number can be changed on this screen if needed.

Once the screen is completed, click on the Preview button to display the preview entry. Verify all information is correct -
do not be concerned that the amount is labeled “Interest Amount.” Click on the Post and Generate Final Proof button.
The entry has now posted. When the proof sheet appears, click on the printer icon to print a copy of the entry for
documentation. Note: Be sure to print the proof sheet.

1
Montgomery County Public Schools, MD 12/2012

Financial Manual CHAPTER 20 Independent Activity Funds March 2013

INDEX
20–36

2
Montgomery County Public Schools, MD 12/2012

March 2013 Montgomery County Public Schools

INDEX
 20–37

APPENDIX E
Recording CIF Transactions—SFO

Independent Activity Fund (IAF) Accounting With

RECORDING CIF TRANSACTIONS

RECORDING CENTRALIZED INVESTMENT FUND TRANSFERS

1) To transfer funds from checking to savings

To transfer funds from the school’s checking account to savings in SFO, it is possible to
write a check payable to the Centralized Investment Fund (Sandy Spring Bank) directly from
the 9930.000 CIF asset account. It is no longer necessary to void CIF chec ks and record
general ledger transfers to move funds. Checks written to the CIF in this manner will appear
on the outstanding check list and can be cleared in the normal bank reconciliation process.

A. Enter the check in SFO

 Click <Check>, <New Check>
 Use the current date
 Allow the check number to default to <Print>
 The vendor is <Centralized Investment Fund>
 The description is <Move funds to savings>
 Enter account <9930.0000>
 Enter the amount that you want to move
 Save the transaction

B. Print the check

 Click on <Preview Checks>
 If the check is correct, click on the <Print> button at the top of the preview window to
print the check

C. Post the check

 After the check has printed correctly, click the <Post Checks> button

Note that when transferring funds from checking account to savings account the transaction will
appear as a negative disbursement in the CIF 9930.0000 account history report.

Financial Manual CHAPTER 20 Independent Activity Funds March 2013

INDEX
20–38

2) To transfer funds from savings to checking

Funds will be transferred electronically from Sandy Spring Bank to your school’s
checking account. When the funds appear in your checking account, the movement of
funds is recorded as an Asset Transfer between the savings and checking accounts. This
transfer will appear as a negative transfer in the CIF account histo ry report.

 Click <JE’s>, <Transfers>, <Asset Transfer>

 Transaction date is the date the bank posted to the checking account
 Record the amount of the transfer
 The “Take-From” account is 9930.0000 CIF
 The “Add-To” account is 9920.0000 Checking Account
 Reference <Move funds to checking>
 Add any additional comments as necessary
 Click the <Preview> button to view the transfer
 Click the <Post and Print Final Proof> button
 Maintain proof with CIF transfer authorization signed by the principal

3) RECORDING CENTRALI ZED INVESTMENT FUND INTEREST AND EXPENSE

A. Access monthly Centralized Investment Fund (CIF) statement online and print a copy.

B. Record CIF interest and CIF expense as journal adjustments. For interest, click <JE’s>,
<Bank Interest/Other Credits>, Post to Account <0055.0000 CIF Interest>, Offset Account
<9930.0000 CIF>, and Reference <CIF Interest>. For expense, click <JE’s>, <Bank
Charge/Other Debits>, Post to Account <0056.0000 CIF Expense>, Offset Account
<9930.0000 CIF>, and Reference <CIF Expense>. Information entered in “Additional
Comments” will appear only on the proof sheet.

C. If your school has additional CIF accounts set up for endowment funds, memorial accounts
etc. you will need to record the interest and expense for each separate account in the fund’s
activity account and corresponding general ledger account.

D. Transaction Date
a. The date recorded should be the date interest/expense was posted to your CIF account by
Sandy Spring Bank (SSB) and should be recorded in the general ledger in the month
received. If for any reason interest/expense is not posted in the month received before that
month is closed (reports have been completed and signed), interest/expense should be
recorded as soon as possible with a transaction date in the month currently open. All
interest/expense must be recorded prior to closing the fiscal year and completing year-end
reports.

E. After recording the monthly interest and expense, compare the CIF statement to account
9930.0000 to ensure that all transactions have been correctly recorded in the general ledger.
Resolve any discrepancies.

4. Include the CIF statement, with the journal adjustment proof sheets, in the month-end report
forwarded to the principal for review.
Page 2 of 2

March 2013 Montgomery County Public Schools

INDEX
 20–39

APPENDIX F
Visiting Bookkeeper Checklist—SFO

Independent Activity Fund (IAF) Accounting With

VISITING BOOKKEEPER CHECKLIST (revised)

1. Review prior month account history (sponsor) reports.
• Which sponsors have not returned reconciliation reports?
• What strategies have been used to ensure all sponsors have reviewed,
signed, and returned account history reports?

2. Review Time & Effort Certification forms to ensure that forms are
completed and on file for all grant funded positions.

3. Review records of all IAF transactions - receipts, disbursements, and

transfers through current date.

4. Perform Independent Bank Reconciliation In SFO software (reference SFO

User Guide, Section 7, page 56)
• Print and Sign/Date the following:
 Completed bank reconciliation report
 List of outstanding checks

5. Print additional Monthly Reports for principal’s review and signature.

Signed reports should be kept in a notebook in the main office. A divider
should be prepared for each month and items filed in the following order:
A. Receipts & Disbursements Report (formerly F u n d s Ledger Report)
• Enter the last day of the month in the field for “Report Ending
Date”
• Select “Detail” and “Exclude Encumbrances, Exclude Accounts
with Zero Balance” then “Generate Report Data”
• Check your report for the following:
• Total Regular Accounts equals Total Asset Accounts
• Transfer column equals $0
• Click “Finish” then print the report for principal’s review and
signature
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Montgomery County Public Schools, MD Rev. January 2013

Financial Manual CHAPTER 20 Independent Activity Funds March 2013

INDEX
20–40

END OF MONTH CHECKLIST, continued

B. Account History Reports (formerly Account Sponsor Reports)

Account History Reports should be run for all accounts (exclude accounts with zero
balance), regardless of activity, for the current month, in sponsor order, with page
breaks (these reports are for sponsors to review, sign, date, and return to the
financial agent); file signed Account History Reports in separate binder or folders.
▪ Enter the first day of the month as the “Start Date;” enter the last day of the
month as the “End Date”
▪ Set report parameters to “Select All” accounts and “Run by account sponsor”
▪ Click on “Generate Report”
▪ Print

C. Centralized Investment Fund (CIF) online statement for current month

D. FMS iReceivable Account Summary Report (as of Month End Date)

5. Principal’s Review of Receipts and Disbursements Report and Bank Reconciliation

The financial agent and principal should meet to review and the Receipts and
Disbursements Report and the Bank Reconciliation Report, including all monthly and
year to date activity in accounts.

A. Look for the following:

▪ Note the beginning, ending balances, monthly, and year-to-date activity. What is
the purpose of each account? Which accounts are restricted use?
▪ Which accounts have negative balances? Why? How will the negative balances
be resolved?
▪ Note account activity for the current month – Which accounts show the most
activity? Which accounts are inactive? Why? Do any accounts need to be closed
out?
▪ Make sure the “Reconciled Bank Balance” on the Bank Reconciliation equals
“Checking Account” balance on the Receipts and Disbursements Report.
B. The principal should sign and date the Receipts and Disbursements Report and the
Bank Reconciliation Report, and then return the signed reports to the financial
agent to retain for audit records.

6. Collect Reports
For completed activities, have sponsoring staff members prepare the following
reports:
A. Fund Raiser Completion Reports (available on myMCPS Business Center/tools)
B. Final Field Trip Accounting Forms (MCPS Form 280-41 or equivalent)
C. Inventory lists (MCPS Form 281-22) for activities with salable merchandise. This
form should be completed even if there were no items left.
D. Monthly Account History Reports – reviewed, signed and dated by sponsor

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APPENDIX G
End of Month Checklist—SFO
Independent Activity Fund (IAF) Accounting With

END OF MONTH CHECKLIST

FOR THE MONTH OF_________________, Year ________

1. Record All of the Following:

A. Receipts (including interest earned and ACH transactions)
B. Disbursements (including bank charges and ACH transactions)
C. Transfers
D. Movements of cash (including deposits)
E. CIF Interest/Expense/Transactions

2. Record Any of the Following:

A. Voided checks/receipts
B. Old checks written off
C. Bank corrections
D. Adjusting entries

3. Complete Bank Reconciliation in the School Funds Online (SFO) software

A. Who does the bank reconciliation?
 High Schools – to be done by the school business administrator
 Middle Schools – to be done by a designee, trained by school financial
specialist (send name of bank reconciliation designee to Sue DeGraba for
access to be set up in software)
 Elementary Schools – to be done by visiting bookkeeper
B. How is the bank reconciliation done? (Ref: SFO User Guide, Section 7 – pg 56)
C. The person doing the bank reconciliation should Print and Sign/Date the
following:
 Completed bank reconciliation report
 List of outstanding checks

4. Print Monthly Reports

At the end of each month, the following reports must be printed and kept in a
notebook in the school financial office. A divider should be prepared for each
month and items filed in the following order:
A. Receipts & Disbursements Report (formerly General/ F u n d s Ledger Report)
▪ Enter the last day of the month in the field for “Report Ending Date”
▪ Select “Detail” and “Exclude Encumbrances, Exclude Accounts with Zero
Balance” then “Generate Report Data”
▪ Check your report for the following:
1) Total Regular Accounts equals Total Asset Accounts
2) Transfer column equals $0
▪ Click “Finish” then print the report for principal’s review and signature
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END OF MONTH CHECKLIST, continued

B. Account History Reports (formerly Account Sponsor Reports)

Account History Reports should be run for all accounts (exclude accounts with zero
balance), regardless of activity, for the current month, in sponsor order, with page
breaks (these reports are for sponsors to review, sign, date, and return to the
financial agent); file signed Account History Reports in separate binder or folders.
▪ Enter the first day of the month as the “Start Date;” enter the last day of the
month as the “End Date”
▪ Set report parameters to “Select All” accounts and “Run by account sponsor”
▪ Click on “Generate Report”
▪ Print

C. Centralized Investment Fund (CIF) online statement for current month

D. FMS iReceivable Account Summary Report (as of Month End Date)

5. Principal’s Review of Receipts and Disbursements Report and Bank Reconciliation

The financial agent and principal should meet to review and the Receipts and
Disbursements Report and the Bank Reconciliation Report, including all monthly and
year to date activity in accounts.

A. Look for the following:

▪ Note the beginning, ending balances, monthly, and year-to-date activity. What is
the purpose of each account? Which accounts are restricted use?
▪ Which accounts have negative balances? Why? How will the negative balances
be resolved?
▪ Note account activity for the current month – Which accounts show the most
activity? Which accounts are inactive? Why? Do any accounts need to be closed
out?
▪ Make sure the “Reconciled Bank Balance” on the Bank Reconciliation equals
“Checking Account” balance on the Receipts and Disbursements Report.
B. The principal should sign and date the Receipts and Disbursements Report and the
Bank Reconciliation Report, and then return the signed reports to the financial
agent to retain for audit records.

6. Collect Reports
For completed activities, have sponsoring staff members prepare the following
reports:
A. Fund Raiser Completion Reports (available on myMCPS Business Center/tools)
B. Final Field Trip Accounting Forms (MCPS Form 280-41 or equivalent)
C. Inventory lists (MCPS Form 281-22) for activities with salable merchandise. This
form should be completed even if there were no items left.
D. Monthly Account History Reports – reviewed, signed and dated by sponsor

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APPENDIX H
Guidelines for Student Athlete Purchases
(February, 2013)
General Guidelines—The following general guide-
1) 
lines apply to all team and student purchases.
• Coaches must have approval from the principal or
designee before initiating any purchases for their
team or for students on their teams.
• School teams may not have their own bank
accounts. Personal checks may not bear the name
of the school or school team.
• Students must purchase all equipment, uniforms,
apparel, and items that they do not return to the
school at the end of the season.
• If the school is involved with the purchase of an
item that will become the personal property of
students, sub account codes 9053/5053 (student
purchases) should be used, unless the purchase
is conducted as a fundraiser. Sales tax must be
included. If conducted as a fundraiser, appropriate
school system fundraiser standards and proce-
dures should be utilized.
Required School Inventory Items—Uniforms
2) 
and equipment owned by the school and issued to
students for a particular season. Items are returned to
the school after the season.
• These items are required for participation in inter-
scholastic athletic competitions.
• If a student damages or loses an assigned item, the
student incurs a financial obligation for repair or
replacement costs.
Required Personal Items—Items required for par-
3) 
ticipation, but items are purchased and retained by
students.
• The items become the personal property of the
student.
• Examples include mouthpieces, socks, baseball
hats, swimsuits, practice jerseys, girdle pads,
shoes, etc. Examples may also include uniforms.
• Required personal items may be purchased in one
of three fundamental ways:
Financial Manual CHAPTER 20 Independent Activity Funds
20–43
A. Items purchased directly by the student from
a vendor, without school involvement (for
instance, student purchases cleats, socks, etc.,
directly from Sports Authority).
B. Items purchased directly by the student from a
vendor, with school involvement (for instance,
working with an approved vendor, school
designs a T-shirt, or designates a particular
color of socks, etc., and negotiates a price.
Then, student purchases the T-shirt directly
from the vendor, either online or otherwise).
C. Items purchased from a vendor by the school,
and students purchase the items from the
school, using athletic sub accounts 9053/5053.
• If offered for sale through the school, the cost
of the item to students (rounded to the nearest
dollar for ease of accounting) must be calculated
with sales tax and no profit to the school’s athletic
program. No overcharge may be assessed to pay-
ing students to offset the costs absorbed by the
school for students who are unable to pay.
• The coach is responsible for coordinating orders
and collecting funds from students. Checks
should be made payable to the school (not to an
individual) and funds collected should be remit-
ted to the school financial specialist on a daily
basis. The order should be transacted according to
MCPS procurement guidelines and paid through
the school’s independent activity fund.
4) Optional Personal Items—Items are not required
for participation; items are retained by students as their
own personal property.
• Purchasing options and procedures for optional
personal items are the same as required personal
items.
• Coaches must emphasize that purchasing the item
is an option, not a requirement.
• The sale of optional team gear may be coordinated
by parent-team support groups; however, parent
groups may not have checking accounts bearing
the school name.
March 2013
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20–44
Guidelines for Athletics Fund-Raising
• All fund-raising activities shall be in accordance with
Policy CND, School-Related Fund Raising.
• The principal must authorize in advance and in
accordance with Policy CND all fund raising
activities.
• Booster clubs must follow school and school system
guidelines and procedures with respect to fund-
raisers, including gaining approval from the principal
or designee. Such activities should be planned/sched-
uled collaboratively with the school administration
to minimize conflicts with the instructional program
or previously planned school-sponsored fund raising
activities.
• Fund-raising activities may not be conducted for the
purpose of raising funds to purchase personal items
retained by student athletes or to support out-of-
season activities such as camp or clinic fees, meals,
apparel for coaches or participants, summer league-
related expenses, or coaches’ compensation.
• Fund-raising activities may be conducted to defray
the cost of optional activities such as travel expenses
for in-season tournaments and athletic competitions.
Questions and Answers
Meetings
Does sharing the cost of refreshments with other high
schools for hosting a systemwide athletic directors meeting
count towards my fiscal year $60 per FTE calculation?
No. The cost of refreshments for these meetings is
an exception to the $60 per FTE rule. The School
Funds Online chart of accounts has an account in
the athletic series to record these costs. However, any
meeting your school athletic staff convenes separately
does count against your $60 per FTE per fiscal year
maximum amount.
March 2013
INDEX
Fundraising
Can student athletes be required to generate a minimum
amount of fund raising profit (e.g. sale of merchant coupon
books)?
No. Participation in school fund-raising activities
shall be on a voluntary basis, and no student shall be
compelled to participate or contribute.
Purchases by Parent Groups
Parents of a particular team want to establish a means
whereby team members, or parents of team members, may
work with a vendor to design and sell spirit wear, or items
of apparel, associated with the team. The parents want to do
this independent of the school. Is this permissible?
Yes, if some fundamental guidelines are followed,
including that purchase of the spirit wear is optional.
Pressure may not be exerted on students or their
parents to purchase the optional spirit wear. Other
guidelines are addressed in Q2, Q3, and Q4.
Can a parent open a special checking account for the purpose
of collecting and distributing funds for the purchase of spirit
wear for team members and their parents?
Yes, but it must be clear that the group is separate
and distinct from the school. The account, including
the checks associated with the account, may not bear
the school or team name or initials. A check with the
school name or initials may suggest to some vendors
that the group is representing the school, for tax pur-
poses or otherwise.
Do parents organizing or initiating spirit wear purchases
have to use vendors approved on the MCPS bid list?
No, not if the items are exclusively optional spirit
wear, and not a part of the school uniform. Schools
are obligated to purchase equipment and uniforms
from vendors on the approved bid list.
Montgomery County Public Schools
 20–45

APPENDIX I
Escheatment Process

Independent Activity Fund (IAF) Accounting With

Escheatment Process
The escheatment process defines the MCPS procedures to comply with
the Maryland regulation for unclaimed checks.
1. School Financial Agents begin the escheatment process by:
 Preparing the December bank reconciliation.
 Generating and verifying the outstanding check list for checks
over 180 days as of December 31
 Under Bank Recon > Bank Recon, click Step #4 Checks to mark
checks as reconciled.

 Under JE’s > Transfer, click Asset Transfer to establish the

holding.

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Field Name: Escheatment MM/YYYY, (All fields are required except Additional
Comments).
Transaction Date: Automatically inserts the current date. Update this to reflect the actual
posting date. The transaction date cannot be outside the current fiscal year.
Transfer Amount: Enter the amount to be escheated (total amount of checks over 180
days).
Take From Account: Holding account (9925-0000).
Add to Account: Checking account (9920-0000).
Reference: Enter a description for this entry.
Additional Comments: Enter any additional comments/description for this JE not entered
in the reference field. This information will print only on the proof sheet.
Once the screen is completed, click on the Preview button to display the preview entry. Verify all
information and click on the Post and Generate Final Proof button. The entry has now posted.
When the proof sheet appears, click on the printer icon to print a copy of the entry for
documentation. Note: Be sure to print the proof sheet. If you need to “reverse” this entry,
reenter the exact same entry again, except enter the amount as a negative.

 Send the approved memo to the Division of Controller with

detail for checks to be escheated.
o The memo requires approval by the Principal.
o The memo contains the following information:
check number, check date, amount to pay, SFO vendor
number, SFO vendor name, and vendor address for each
check escheated.
2. Once the Division of Controller reviews and verifies the information
in the memo, an invoice is issued to the school, and the
escheatment process to the State starts.
3. When the school receives the invoice request through iReceivable
application, initiate the payment process through iReceivable as
soon as possible.
 The school must record the electronic payment through the
SFO Manual Check process by charging the holding account
(9925‐0000).
4. The Division of Controller starts the district wide escheatment
process. After receiving the money from the schools, the Division
of Controller will send the funds to the State in October.
5. Refer any calls /inquiries about escheated checks to the Division of
Controller, at 301‐279‐3115, or via fmsmaint@mcpsmd.org.
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Index

A D
Absence of the principal 6 Denial of Reimbursement 19
Activity Sponsor 2, 4 Designation or Delegation 3
Admission 2, 12 Direct payment 6
Advanced Approval of Purchases 6 Disbursement of $7,500 or more 5
Annual Financial Report 8 Disbursement of IAF Funds 5, 17
Athletics 2, 3, 12, 15, 19-21, 43, 44 Disposition of Equipment 2, 16, 17
Audit Reports on the Web 7 Disposition of Funds 16
Authorization 4 Doing Business with MCPS Employees or Their Family 5

B E
Bank Reconciliation 8, 26, 41-42 Electronic Receipts 35-36
Bank Reconciliation Process 8, 26 Employee 2, 3, 6, 14
Bank Statement 8, 26, 27 Equipment 1, 2, 4, 5, 6, 12, 13, 14, 15, 17
BOE Ethics Officer 5 Escheat 3, 11, 45
Booster Clubs 16 Exchange Activities 21, 25
Box Tops for Education 21, 25
Business Activities 11, 21, 26 F
Federal Tax Identification Number 8
C Field Trips 2, 9, 19, 25
Career and Technology Education 13 Financial Accounting Records and Reports 7, 8, 15
Cash (Asset) Accounts 21 Financial Agent 3
Cell Tower Commissions 21, 26 Flowers 18, 27
Cellular Phone 21, 22, 28 Forgiveness of Obligations 19
Centralized Investment Fund (CIF) 20, 25, 37-38 Fundraisers 12, 19, 26
Change Funds 21, 26 Fund raising 1, 2, 4, 11, 18
Charities and Legal Services Division 18 Furniture 18
Chart of Accounts 21-34
Checking Account 9, 21, 27 G
Checking Interest 20, 21 General School Activities 22-23
Check made payable to the principal 6 Giant BonusBucks 24
Check Signing 5 Gift 17
Class Activities 21, 23 Gift Cards 6, 19
Class and Club Activities Accounts 11 Gifts 14, 15
Closing Schools 16 Grants and Donations 21, 24
Club Activities 21, 25 Guidance/Transcript Fees 23
Commercial Transportation 9
Commissions and Bonuses 7 I
Competitive Non-School Club 2 IAF Account Structure 10
Construction 4 Inactive Accounts 3, 11
Contract File 7 Independent Contractors 14
Contractor Subsidies 7 Interagency Coordinating Board (ICB) 23
Contracts 5, 6, 7, 14 Internal Audit 3, 9, 18
Contributions to charitable organizations 6 Internet Service 18
Course fees 10
L
Liability Considerations 5, 7
Loans to MCPS Employees 6
Lost Receipt 19

Financial Manual CHAPTER 20 Independent Activity Funds March 2013

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20–48

M S
MCPS Employees 1, 2, 5, 6, 7, 12, 13, 14, 17 Safety 4, 17
MCPS Reimbursement 19, 20 Safeway/eScrip 21, 25
Media Center/Library 21 Sales Tax 7, 10, 14, 18, 21, 23
Meeting Refreshments 22 School-Affiliated Organizations 16
Membership Cards (COSTCO) 8 School Newspaper 25
Memorial Accounts 11 School Stores 12, 26
Memorial/Scholarship 21, 27 SERT Rebate 23
Monthly Reports 8 SFO 8
Music 21, 24 SGA 21, 25
Sponsor Accounts 11
N Sponsor Records 9
Negative Balance Accounts 11 Staff Appreciation 19
Staff Development 10, 19
O Staff-Owned Accounts 1, 10, 19, 25
Obligation 3, 6 State of Maryland 17
Obligations 14, 15, 19 Stock Gift 18
Opening Schools 17 Student Identification (ID) Cards 24
Outdoor Education 25 Student Parking 12
Ownership 1 Students 2, 12, 14, 24
Summer School 19, 24
P Supporting IAF Records 10
Patrol 25
Payments for Personal Services 2, 14 T
Payment to Vendors 14 Target Rebate 21, 24
Petty Cash 3, 19, 25 Testing Support 21, 24
Picture Sales 13 Transfers 8, 11, 19, 21, 26
Pictures Commissions 26 Transparency 7
Principal 3, 7, 19, 21, 22
Principal’s Student Assistance Fund 22 V
Prior Approval 4, 5, 18 Vending Machines 12, 26
Prohibited Disbursements 6 Visiting Bookkeeper 3, 39-40
Promethean Boards 5
PTA 2, 3, 16, 18, 19 Y
PTA/PTSAs 16 Yearbook 13, 21, 26
Publications 19, 26 Yearbook Ads 21, 27
Purchase/Credit/Debit Cards 7
Purchasing Card 2, 4, 7, 8, 14, 20
Purpose 1

R
Refreshments 4, 6, 19
Removal of Records 15
Responsibilities 3
Retention of Records 15

March 2013 Montgomery County Public Schools