Card Issuance

Administration of the school, along with those designated by administration, will be issued a PCard. Administrators and Directors can submit a request to the Business Director to add cards under their division of the school. No employee is authorized to open a credit card account in the school’s name.

Card Usage

Detailed receipts or clear pictures must be retained. PCards are to be used for school business purposes only. PCards should not be shared. Please consult the Business Director if a purchase is needed outside of the PCard procedure. PCards should be used for supplies, expenses, small equipment, inventory, and school related travel (lodging, meal and transportation). When possible, cardholders should make every effort to ensure that purchases do not include state sales tax. Tax-exempt certificates are available in the Business Office. Individuals to whom a PCard has been issued should not use personal credit cards for school purchases. Cash advances on PCards are not allowed.

Purchases made on PCard are the responsibility of the individual to whom the card has been assigned. Users of the PCard shall maintain the safety and security of the card like any other card. Treat the card as if it was cash. Users must agree that at no time should a photocopy or any other duplication of the card number and security code be distributed to any other individual. Users must agree to not use the PCard if it causes actual expenses to exceed the budget allocated to the user or department for which a budget is assigned.

The following types of items are prohibited items regardless of dollar amount: cash advances, personal transactions, alcoholic beverages, capital assets (any item costing more than [$2500], any goods or services not directly benefiting CHA.

The user of the PCard is responsible for dealing with any disputed charges. Any monthly subscriptions / charges need to be approved by the Business Director. Theft or loss of a PCard should be immediately reported by the cardholder to the credit card company and as soon as possible to the Business Director. It is the responsibility of the direct manager of the cardholder to retrieve PCard from individuals upon termination or transfer and deliver to the Business Director. A comprehensive list of issued PCards is maintained in the Business Office.

Card Billing (and Card Custody)

The Business Office will receive the monthly credit card billing statements. To avoid late fees, the bill will be paid. A reminder email will be sent to card holders to check for new transactions. Reviewing this weekly is very important to ensure timely substantiation of the charges on the billing statement, account number designations of those charges, and approvals.

Once notified, the PCardholder should review the billing charges for correctness. In the case of meals and entertainment, the following must be indicated on the report in accordance with IRS regulations: the date/time of the event, names of all persons included, and a brief description of the business purpose of the purchase.

Within 5 business days, the PCard report must be submitted via the PCard portal. It is important that the report is routed by the 5th business day to ensure their manager has time to review by the 8th business day. It is the responsibility of the PCard holder that the report is submitted to the Business Office on time.

Cardholder Acceptance of Policy and Procedures

Individuals that do not adhere to these policies and procedures will risk:

• Revocation of PCard privileges;
• Personal liability for improper card usage;
• Disciplinary action.

Holders of PCards will be required to sign a copy of this document as evidence of their understanding and acceptance of the policies and procedures contained herein.

PCard issuer will need to read, understand, and accept the policy and procedures contained in Procedure 301 by signing Procedure 301’s content and regulations. This will be sent to them via the Business Office.

Approved by Administration Team 07/2024

Accounting standards are reviewed as part of the annual financial audit. Financial statements should be reviewed monthly for proper accounting treatment, and unusual items must be questioned and investigated.

To ensure that record keeping is in accordance with Generally Accepted Accounting Principles (GAAP) and appropriate internal controls are maintained, the following procedures shall be followed:

• Standard accounting procedures, in accordance with GAAP, will be utilized for all financial functions
• The school will use the accrual basis of accounting, recognizing revenues when earned and expenses when incurred.
• A Chart of Accounts will be utilized, reviewed annually, and updated as required.
• An annual audit will be conducted by an independent auditor.
• All financial transactions must be recorded promptly and accurately in the school's accounting system Veracross.
• A Chart of Accounts will be maintained to categorize financial transactions.
• Unannounced, internal audits will be performed by a member(s) of the Finance Committee of the Board to ensure that the stated operating guidelines have been followed.
• To ensure optimal internal controls, when possible CHA will separate functional responsibilities as recommended by GAAP, to the extent possible based on staffing resources.
• All Accounts Payable records will be stored by fiscal year and organized by disbursement date.
• All Accounts Receivable and Payroll records will be stored by fiscal year.

Approved by Administration Team 10/2024

Authorized Signers

The following individuals are to be legal Authorized Signers on each of the bank and/or investment accounts:

• Business Director
• Board Treasurer
• Board Chair

Expenditure Authorization

All expenditures must be authorized by the appropriate administrator or governing body according to the procedures listed below. It is the responsibility of the school administration to ensure that purchases are aligned with the intent of each account, that adequate documentation is maintained, and that purchases fall within the approved budget.

• Only delegated authorities may bind/commit the school in contractual agreements, guarantees, and duties to perform. Such arrangements are authorized at the following levels:
  • For amounts over $200,000: full board approval
  • For amounts between $100,000-200,000: Board Chair & Board Treasurer approval
  • For amounts between $20,000-$100,000: Board Treasurer approval
  • For amounts under $20,000: Business Director and Head of School approval
  • The delegated authority extended to budget managers may only be extended to the amount of the budget that is approved by the Board.
• No employee of the school may spend over $5,000 without prior approval from the Business Director and Head of School.
• All proposals or agreements for grants, sponsored projects and programs gifted to the school require the signature/approval of the Head of School and Business Director.
• All proposals or agreements for grants, sponsored projects and programs received by the school that are not receipted as a gift due to the nature of the individual or organization extending the funds, require the signature of the Head of School or Business Director if designated to do so.
• All school agreements for construction or architectural/engineering design services above $15,000 require Board approval before entering into contract.
• Any lease of school facility or space use requires the approval of the Business Director and Head of School when the space sharing contract exceeds entering into a lease of greater than $5,000.

Approved by Administration Team 10/2024

Vendor Management

All vendors must be approved and set up in the accounting system before any purchase is made.

• Vendor information must be verified, including tax identification number via a W-9 and contact details.
• Vendor records should be reviewed and updated regularly.

Invoice Processing

• Invoices must be submitted directly to the Business Office.
• CHA’s tax exempt certificate should be presented at time of purchase.
• Each invoice must be reviewed for accuracy, completeness, and compliance with the terms of the purchase order or contract.
• Invoices must be matched with the corresponding purchase order and receiving documents (3-way match) where applicable.
• Discrepancies must be resolved before payment is processed.

Approval and Payment Authorization

• Invoices must be approved by the appropriate department head or designated approver.
• Approval signifies that the goods or services were received as ordered, the invoice amount is correct, and the expenditure is within budget.
• Payment authorization limits should follow Procedure 308.

Payment Processing

• Payments should be scheduled to take advantage of any early payment discounts and to ensure payments are made by the due date to avoid late fees.
• Payments can be made by check, electronic funds transfer (EFT), or other approved methods.
• All payments must be recorded in the accounting system immediately upon issuance.

Internal Controls

• Segregation of duties must be maintained to ensure that no single individual has control over all aspects of a financial transaction.
• Regular audits of the accounts payable process should be conducted to identify and address any discrepancies or inefficiencies.
• Access to accounts payable systems and records should be restricted to authorized personnel only.

Accountability of Accounts Payable Checks

• Blank check stock is to be physically restricted and kept in a locked cabinet in the Business Office. A check log will be mainted to track when a check or checks are produced. The individual printing check(s) can not update the log.

Approved by Administration Team 10/2024

Budget Preparation

Budgets are prepared yearly for CHA and are to be monitored on a monthly basis. The budget is proposed by the school administration, approved by the Board of Directors, and finally the Association at the spring Association meeting.

In the budgeting process, revenue amounts will be estimated conservatively. Enrollment should be estimated using data calculations from the last four year's September enrollment, but factors that may influence enrollment to depart from a hard calculation should also be considered. Recommendations for tuition, fees, scholarships, and discounts will also be determined.

An efficient pupil-FTE ratio will be maintained in contracting personnel. Salaries and benefits will be reviewed annually.

Budget requests will be prepared by each administrator. It is the responsibility of the administrators and supervisors in various departments to involve staff in the formulation of the budget and to advise them of what is finally approved.

Budget Timeline

• October: The Board Finance Committee provides recommendations and/or budget goals to the administration for the following school year.
• November: The Business Director and Head of School recommend tuition amounts to the Board Finance Committee.
• December: The Board approved tuition for the following school year.
• November/December: Business Director and Head of School meet regularly to start drafting the following year's budget. During this time the Business Director will meet with key budget owners to hear their needs for the following school year budget.
• January: The Business Director and Head of School will seek key inputs from the Finance Committee. Final budget worksheets from key budget owners are due by the end of the month.
• February: A draft budget is sent to the Finance committee for feedback by the end of the month.
• March: Preliminary budget for the following school year is submitted to the Board for consideration. The Board provides feedback to the administration.
• April: The Board votes to approve the final budget. The Association meets to approve the final budget.
• May / June: Preliminary budget is input into the accounting system.
• September / October: The budget is updated after annual enrollment is finalized each year.

CHA Leadership has regular meetings to discuss important issues, including finances. The CHA Leadership Team meets several times / month, and CHA office staff meets on a monthly basis. Association meetings are held 2x / year and include financial updates.

Approved by Administration Team 10/2024