Christian Heritage Academy

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====== ADMINISTRATIVE PROCEDURES ======

===== FINANCE (Section 300) =====

==== 300 Petty Cash ====

The primary purpose of the petty cash fund is to create cash boxes for making change during the sale of items at events. The use of petty cash should typically be avoided; if at all possible, arrangements should be made with the Business Office in advance of events to use non-cash payment methods. The school petty cash fund will be maintained at a level of $450 and stored securely.

Cash boxes may only be distributed by the Business Office to school faculty/staff or registered volunteers. The person to whom the cash box is distributed will be responsible for the cash at the event, for ensuring the cash is correctly counted, and for returning the cash/box. When a cash box is issued, it may contain no more than $150. The individual given the cash box will be responsible for returning the cash to the Business Office, where they will count the funds being returned for deposit with a Business Office employee. If a Business Office team member is not available, a counter can be chosen from among school staff/faculty or registered volunteers who is not part of the event where the cash was used. The deposit can be dropped in the locked box in the school mailroom. Cash used or not returned will be expensed to the cost center for that event. The representative will need to clearly note why any cash was not returned.

//Approved by Administration Team 
01/2025
//

==== 301 Purchase Cards ====

**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
//

==== 302 Accounting Standards ====

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//

==== 306 Cash Management ====

There must be a segregation of duties in order to safeguard the school’s assets. The responsibilities of receiving cash, recording cash, depositing cash, and the reconciliation of the deposit must be separated and performed by different individuals.  In no instance shall the individual accepting the cash be the same individual responsible for performing the reconciliation.  Responsibility over transaction proceeds must be clearly delineated and assigned to specific individual(s) to ensure accountability. 

Cash receipts must be reconciled to the schools Veracross system weekly (>$5,000) or bi-weekly (<$5,000) basis. The reconciliation should be reviewed by someone independent of the cash handling or recording functions and their approval evidenced by their signature and date.

The following responsibilities should be distributed among personnel so that one individual is not responsible for all aspects of the cash collection cycle:

  * Opening mail
  * Endorsing checks
  * Preparing deposits
  * Reconciling payments in the system(s) of record

//Approved by Administration Team 
01/2025//

==== 308 Authorization ====

**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//

==== 310 Line Item Fidelity ====

Expenses must be in alignment with the basic purpose of the line-item. Revenue may not be placed in expense line items (artificially reducing expenses), nor may expenses be made from revenue line items artificially reducing them. Receipts that are restricted in nature will need to be placed in the corresponding fund 05 account. No new 05 funds should be created without approval from the Head of School and the Board Finance Committee. 

//Approved by Administration Team 
01/2025//


==== 312 Accounts Payable ====

**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//


==== 327 Space Sharing ====

**Space Use Guidelines for Employees**

CHA is delighted to be able to share its school facilities with current CHA employees within the following parameters.

//CHA Authorized Use: No Charge//

Employees should contact the Front Office Coordinator for availability. Once dates, times, locations have been identified as available, they should be put on the calendar and marked as confirmed. Such use must be for events conducted by employees that have a specifically authorized purpose to support and enhance the programs and mission of CHA. 

Typical events might include such things as:
  * Class potlucks and socials
  * Prayer meetings
  * Board, Committee, and Commission meetings
  * Hospitality
  * CHA events and related preparations
  * After-school tutoring and private music lessons
       * Tutoring/music lessons must be conducted in the teacher’s classroom. 
       * Classroom doors, curtains, and/or blinds should remain open to ensure clear visibility by others. 
       * Students must remain in the teacher’s classroom for the duration of the tutoring or lesson.
       * Teachers are responsible for ensuring that students have been picked up by an approved adult after the session.
       * Room usage is free of charge before 5:30 pm. For usage after 5:30 pm, follow Personal Use guidelines below.

//Personal Use: With Charge//

Employees should contact the Facilities Manager for availability and rates. Once dates, times, locations have been identified as available, employees should complete and submit the Space Sharing Reservation Inquiry Form and the Facilities Manager will reach out to discuss terms and seek confirmation of your reservation.

Employees receive a 50% discount off the current rack rate for all space rentals, except for the Auditorium, which is offered at a 25% discount off the current rack rate.

Required Action Steps:
  * In advance, obtain instructions for door unlock/lock instructions (request from the Facilities Manager)
  * Any room used should be returned to its original condition prior to the event. 
  * Coffee Service from the kitchen coffee station is unavailable for personal use.
  * Setup/breakdown tables and chairs
  * Place all debris in garbage cans
  * Clean kitchen thoroughly (if using)
  * Bring in your own disposable products, i.e. plates, cups, napkins, and tablecloths
  * Clean any borrowed servicing items and return them to the original storage location
  * Return kitchen storeroom, refrigerator, or any other keys to the front office 
  * Report any Items that break or malfunction to the Facilities Manager (CHA use)

//Additional Guidelines//

  * Students are to be under adult supervision (within sight of adult) at all times
  * No one should roam the building, but stay only in reserved areas
  * Exterior doors must never be propped open or left open unattended
  * Any use of CHA’s tech equipment must be pre-approved by CHA
  * Animals are not permitted, except for service dogs
  * No alcoholic beverages, cigarettes or other drugs, or weapons are allowed in buildings or on campus

//Approved by Administration Team 
9/2026//
==== 332 Fees and Charges ====

School fees are published on the school website or intranet prior to April 1 of each school year. Nominal fees may be added throughout the year as approved by the Administration. For example: milk fee, transportation fee, broken computer fee. As much as possible, the Administration should include fee charges within school tuition. 

Each new student will be charged an application fee of $125 and an enrollment deposit, to be returned after graduation minus any applied penalties, of $500.

The Enrollment Deposit will be refunded to the family upon Upper School graduation or timely notification (by the Re-Enrollment Deadline) of an intention not to return to CHA the following academic year, minus any outstanding fines or fees. If the family notifies the school of withdrawal after the Re-Enrollment Deadline, the tuition deposit is forfeit and non-refundable.

Fee and tuition payments are invoiced through VC Pay, which is the preferred method of payment.

Application and re-enrollment fees are non-refundable.

The only exception to the non-refundable enrollment fee will be for families who have paid their enrollment fee contingent upon receiving financial aid, and then subsequently learn that they do not qualify for financial aid. These families will receive a full refund of their enrollment fee as long as they do not attend Christian Heritage Academy in the Fall. (See Tuition, Discount, and Refund Policy)

//Approved by Administration Team 
01/2025//

==== 335 Penalties for Early Withdrawal for an Upcoming School Year ====

Re-enrolled and enrolled students who withdraw after re-enrollment/enrollment and prior to the start of the upcoming school year will be charged the value of one eleventh of tuition as a fine in addition to both (a) any owed tuition/incidental/trips/invoice items  and (b) the forfeiture of the enrollment deposit (where applicable), as a process of Early Withdrawal. Untimely withdrawal causes the school to incur significant costs. CHA can withhold grades and transcripts from parents until fines and outstanding invoice items are paid. 

//Approved by Administration Team 
01/2025//
==== 336 Penalties for Delinquent Payments ====

For accounts that are 30-45 days past due, the CHA Business Director will issue a written note to the parent (or guardian) advising them that their account must be immediately paid. The parent (or guardian) must make full payment of the past due balance within 10 days. This will start the process of charging a 2% deferment. Parents receive a 2% deferment fee on the 10th of the following month for any overdue tuition or fees.  

For accounts that are 46-75 days past due, the CHA Business Director will request a face-to-face meeting or phone call with the parents (or guardian) to explore ways to bring their account into compliance. Options included would be use of the special assistance fund, payment plans, or potential withdrawal of students from the school.

For accounts that are more than 75 days past due, the steps discussed in paragraph 2 above will continue to be in effect, and that student’s principal must be discreetly notified. If there has not been any response to the letter or requests for a face-to-face meeting/phone call, a certified letter will be issued to the parents (or guardian) advising that their child(ren) will not be permitted to return to school until a satisfactory payment plan has been agreed to with the CHA Business Director.

If any payment becomes more than 90 days past due, students may be restricted from attending classes until an agreement is reached with the school administration (Head of School and Business Director) on payment terms (See Parent-School Agreement). In order for a student to be admitted to class on the first day of any semester, all past due accounts for the prior school years must be paid in full, all accounts must be current or an agreement reached with the school administration made to bring them current (See Parent-School Agreement). Student transcripts, report cards and other student-related information will be withheld until account balances are paid in full.

At the discretion of the CHA Treasurer, the family will be required to bring the account balance to zero before the next school year begins. This would normally be required in situations where the family’s late payment occurrences happen towards the end of a school year (e.g., April-June). Exceptions may be given to agreed-upon payment plans that span two school years.

A family’s probationary account status with the school will be returned to normal at the discretion of the Business Director, provided that the family was in compliance with the terms discussed above.

//Approved by Administration Team 
01/2025//

==== 337 Tuition and Tuition Payment Plans ====

Annual tuition is determined by the Board of Directors (See Tuition, Discount, and Refund Policy). Tuition must be publicly posted on the school website. 

Parents may select to pay the full year of tuition in full by August 28th or one of two payment plans:

11-Month Payment Plan. Eleven equal payments due on the 8th of each month, from July 8 to May 8 of each school year. Payment should be made through VC Pay unless special permission is given by the Business Director.

11-Month Payment Plan. Eleven equal Payments due 28th of each month, July 28th thru May 28th. 

//Approved by Administration Team 
01/2025//

==== 338 Continuous Enrollment ====

CHA practices Continuous Enrollment, meaning that, per the Enrollment Contract, parents are automatically re-enrolled if the school is not notified of withdrawal prior to the Re-Enrollment Deadline (March 15). 


//Approved by Administration Team 
01/2025//


==== 342 Tuition and Fee Schedule ====

Administration should publish no later than December 1st of each year the tuition and fee schedule for the following school year. The schedule should be posted in the appropriate accessible location on the public and internal websites.

//Approved by Administration Team 
3/2025//

==== 344 Partial Semester Attendance Billing ====

**Late Enrollment**

If a new student enrolls before the 15th of the month after the start of a school year, a full month’s tuition is due, based on the 11-month tuition schedule. If a student enrolls after the 15th, a half month tuition fee is due, based on the 11-month tuition schedule. 

**Early Withdrawal**

Students will be charged for the entire month’s tuition regardless of the number of days attended during the month. For example, if a student attends class from October 2-5 and then withdraws from school, he/she will be charged tuition for the entire month of October. No partial month refunds will be issued.

Early withdrawals prior to the end of a semester will also incur an Early Withdrawal Fee, calculated according to the following chart. In addition to the Early Withdrawal Fee indicated below, the Enrollment Deposit will not be returned for withdrawing students who do not withdraw during the annual withdrawal window between February 1st and March 15th (see [[300_finance#332_Fees and Charges|Procedure 332 Fees and Charges]]).

|**Withdrawal during…**|**Early Withdrawal Fee**|
|March 15 to semester start|One eleventh of annual tuition (see [[300_finance#335_Penalties_for_Early_Withdrawal_for_an_Upcoming_School_Year|Procedure 335 Penalties for Early Withdrawal for an Upcoming School Year]])|
|Semester start through September|$1,000|
|October|$750|
|November|$500|
|Semester start through February|$1,000|
|March|$750|
|April|$500|

**PreK and Kindergarten Section Transfers**

Any PreK or Kindergarten students who switch from full day to half day enrollment or from full week to partial week enrollment at any point between March 15 (re-enrolling students)/enrollment (new students) and the end of the following school year will incur a $125 Transfer Fee. Students who switch from half day to full day will incur no fee. 

The Business Director may grant a partial or prorated refund for tuition and relevant fees if extenuating circumstances exist such as moving outside a 30-mile radius, family death or severe health situation, or job transfer. Requests and approvals must be made in writing. 

//Approved by Administration Team 
01/2025//

==== 352 Accounting of Fixed Assets ====

The purpose of this procedure is to ensure consistent tracking and reporting of school assets while supporting responsible stewardship of resources. A fixed asset is a tangible item with a cost of $2,000 or more (per item) and a useful life of 3+ years. Items not meeting both criteria are expensed when purchased.

**Capitalized Assets (with Depreciation Time)**

  * Land (does not depreciate) & Land Improvements (5-40 Years)
  * Building (40 years) & Building improvements (5-40 years)
  * Furniture & equipment (5-40 years)
  * Vehicles (5 years)
  * Technology infrastructure (5-7 years)

**Non-Capital Items**

Routine repairs, maintenance, supplies, subscriptions, and lower-cost technology items are expensed.

**Recording & Tracking**

All fixed assets are recorded in the school’s school management system and include description, cost, purchase date, useful life, and location. Assets are to be depreciated using the straight-line method over standard useful lives (typically 3–40 years, depending on asset type).

**Approval**

Purchases must fall in line with the approved budget or authorized by the Head of School and Business Director. Administration will follow appropriate procedures for spending when purchases go beyond their approval level. 

**Inventory & Disposal**

Assets are reviewed periodically and removed from records when disposed of. Disposal requires administrative notification.

**Donated Assets**

Donated assets are recorded at fair market value at the time of donation.

//Approved by Administration Team 
09/2026//


==== 355 Vendor Payment ====

**Wire/ACH Transfer Payment Verification** 

Independent verification is required for all new wire instructions and any changes to existing payment details.

  * //Phone Verification:// Payment information must be verified directly with the vendor, client, or internal executive using a known, trusted phone number on file. Phone numbers provided in an email requesting the change may not be used for verification.
  * //No Email Verification:// Changes to payment information may not be verified by replying to the requesting email. If an email account has been compromised, an unauthorized party may confirm fraudulent payment details.

**Wire/ACH Transfer Financial Control Workflow**

  * //Segregation of Duties:// Responsibility for initiating, approving, and executing cash disbursement transactions should be separated whenever practicable. An employee who establishes a new vendor should not independently approve payments to that vendor.
  * //Dual Authorization:// Wire/ACH transfers require two authorized signatures or system approvals. CHA may establish a specific dollar threshold above which dual authorization is mandatory.
  * //Vendor Verification://  Business Office staff must verify the identity and legitimacy of the vendor before the vendor is added as an approved payee.

//Approved by Administration Team 
09/2026//

==== 364 Budget Preparation and Calendar ====

**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**

  * September: The Board Finance Committee provides recommendations and/or budget goals to the administration for the following school year.
  * October: The Business Director and Head of School recommend tuition amounts to the Board Finance Committee.
  * October/November: 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//