BUSINESS OFFICE

PROCEDURES MANUAL
2022-2023
 South Texas ISD

Table of Contents

Table of Contents................................................................................................................. 1

Administration ...................................................................................................................... 2

Business Office Staff ......................................................................................................... 3

General Information/Introduction ......................................................................................... 4

Acknowledgement Form ........................................................................................................ 5

Payroll .................................................................................................................................. 6

Accounts Payable ................................................................................................................ 13

Purchasing ....................................................................................................................... 14

Account Codes………………………………………………………………………………….40

Cash Handling Procedures…………………………………………………………………….48

Fixed Assets .................................................................................................................... 53

Student/Campus Activity Funds ..................................................................................... 57

Forms……………………………………………………………………………………………72

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 South Texas ISD

Administration

Marco Antonio Lara, Jr., Ed.D. – Superintendent

Efrain Garza - Deputy Superintendent

Marla R. Knaub - Assistant Superintendent for Finance & Operations

Lissa Frausto, MBA, SPHR Assistant Superintendent for Human Resources

Nereyda Trevino, Ed.D. – Chief Academic Officer

Amanda Odom – Administrator for Public Relations & Marketing

Marcos Flores – Principal of South Texas ISD Health Professions

Criselda Rodriguez Flores – Principal of South Texas ISD Medical Professions

Marco A. Zamora – Principal of South Texas ISD Preparatory Academy

Reynaldo Rodriguez, Ed.D. – Principal of South Texas ISD Rising Scholars Academy

Eric Gutierrez – Principal of South Texas ISD Science Academy

Maribel Valdez - Principal of South Texas ISD Virtual Academy

Cynthia Chairez, Ed.D. – Principal of South Texas ISD World Scholars

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 South Texas ISD

Business Office Staff

Marla R. Knaub
Assistant Superintendent for Finance & Operations

Jaime Faz – Finance Director

Luis Flores – Accountant
Marissa Vaiz – Accountant
Reynaldo Cantu – Purchasing Agent/Accountant
Brenda Lopez – Payroll/Insurance Clerk
Ermelinda Regalado – Payroll/Attendance Clerk
Samantha Rodriguez – Payroll Clerk
Miriam Jimenez – Accounts Payable Clerk
Yolanda Olivo – Accounts Payable Clerk
Sonia Sanchez – Accounts Payable Clerk
Ramon Longoria – Technology/Purchasing Support Specialist

Estefana Saldivar
Secretary to the Assistant Superintendent for Finance & Operations

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 South Texas ISD

General Information

Introduction
This Business Office Procedures Manual has been prepared to clarify district
procedures for the purchasing of goods and services and to provide assistance in the
proper handling and accounting of district funds. The procedures and guidelines outlined
in this manual provide both administrative and accounting internal controls to safeguard
district assets and ensure reliability of the financial records. It is a compilation of state and
federal laws as well as local board policies and procedures.

The policies and procedures outlined in this manual apply to the expenditures of all local
and state funds, state grants, and federal funds and grants. Please refer to the guidelines
for specific state and federal grants to determine allowable use of funds and other
reporting requirements.

Each section of this manual includes adopted board policies, district guidelines, and
instructions. Please refer to the South Texas Independent School District website for
downloadable forms: https://www.stisd.net/facultystaff/resources-logins

Upon receiving and reading the Business Office Procedures Manual, please sign and
return the attached acknowledgement form to Marla Knaub, Assistant Superintendent
for Finance & Operations. The campus/department secretary/purchasing clerk in
charge of purchasing and the campus/department administrator who will be authorizing
purchases should sign the form. We also recommend that these procedures be reviewed
with any other teachers/staff members who will be initiating purchases. All personnel
with financial duties are responsible for the contents of this manual. We recommend
printing one copy for reference; the manual will be posted on
https://www.stisd.net/facultystaff/business-office

This manual will be continually updated and improved with more detailed guidelines and
up-to-date information. While no manual can address every situation that may arise, this
manual does provide general information to assist district personnel with routine financial
transactions.

If you have any questions or would like to schedule a training session for your staff on
any Business Office function, please feel free to contact me.

Marla Knaub

Assistant Superintendent for Finance & Operations

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 South Texas ISD

Acknowledgement Form

2022-2023

I have received and reviewed the Business Office Procedures Manual for the 2022-

2023 school year. I agree to follow all district policies and procedures, local board

policies, state laws, and federal laws for all financial transactions.

Campus/Department

Print Name

Signature

Date

Please email completed form to Marla Knaub, Assistant Superintendent for Finance &
Operations, by e-mail at [email protected]

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 South Texas ISD

Payroll Introduction
The Payroll Department ensures that employees are paid correctly and on a timely
manner. South Texas ISD processes and procedures are in accordance with Board
Policy and Procedures. We are guided by the Financial Accountability System Resource
Guide (FASRG) in all processes.
For information on Payroll or Insurance Services contact the following:
Payroll Staff
Brenda Lopez Payroll/Insurance (Monthly) Ext 4215

Samantha Rodriguez Payroll (Monthly) Ext 4261

Ermelinda Regalado Payroll/Attendance (Semi-monthly) Ext 4251

Applicable Board Policy

CFEA (LEGAL) PAYROLL PROCEDURES – SALARY DEDUCTIONS AND
REDUCTIONS
CRD (LEGAL) INSURANCE AND ANNUITIES MANAGEMENTS –HEALTH
AND LIFE INSURANCE
CRE (LEGAL INSURANCE AND ANNUITIES MANAGEMENT –
W ORKERS’ COMPENSATION
DEA (LOCAL) COMPENSATION AND BENEFITS – W AGE AND HOUR LAW S
DEC (LOCAL) COMPENSATION AND BENEFITS LEAVES AND ABSENCES

The above policies are not all inclusive; others may apply to payroll services.

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Payroll - General
Proper payroll procedures are based on calendar days worked. South Texas ISD utilizes
a Time Clock system for recording hours worked for non-exempt employees. Payroll
is based on attendance.
Employees are paid based on their own employment type and category. Salaries are
calculated based on District’s yearly approved Compensation Schedule.
All payrolls should be generated through the Business office. Payroll records are kept
by the Payroll office. They should reflect an accurate history of the compensation paid.
Hours of Work
The District has adopted an eight-hour workday and a five-day workweek of 39-40
hours/week. This translates to an 8-hour workd a y. The workweek is from Sunday to
Saturday.
Paydays
All employees are paid monthly on or around the 20th of the month. Hourly employees
are paid every 2 weeks.
Unauthorized Work
The Administrator is responsible for ensuring that classified employees adhere to their
assigned work schedule and do not work excess hours without authorization.
Classification of Positions
The Superintendent or designees shall determine the classification of position “exempt”
or “non-exempt”; reference Board Policy DEA (LOCAL) - COMPENSATION AND
BENEFITS – WAGE AND HOUR LAWS.
• Non Exempt Employees
The District’s DEA (LOCAL) Board Policy states, “Non-exempt employees may be
compensated on an hourly basis or on a s alary basis. Employees who are paid on
an hourly basis shall be compensated for all hours worked. Employees who are
paid on a salary basis are paid for a 40-hour work week and do not earn additional
pay unless the employee works more than 40 hours.”
All non-exempt employees shall comply with the work schedule assigned by their
respective supervisor. All overtime/comp-time shall be pre-approved by the immediate
campus or department supervisor. Board Policy DEA (LOCAL) – COMPENSATION
AND BENEFITS WAGE AND HOUR LAWS states, “A Non-exempt employee
shall have the approval of his or her supervisor before working overtime. An employee
who works overtime without prior approval is subject to discipline but shall be
compensated in accordance with the FLSA.”

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 South Texas ISD

Every Non-exempt employee shall “clock-in” and c lock-out” daily through the Time
Clock System. Failure to “clock-in” or “clock-out” may result in non-payment of
unverified work time.
Non-exempt employees shall review and sign approved time sheet
• Exempt employees
Every exempt employee must comply with their annual contract regarding days and
hours worked. Exempt employees are exempt from overtime pay as per; DEA
(LOCAL) - COMPENSATION AND BENEFITS – WAGE AND HOUR LAWS.
The District relies and complies with the Fair Labor Standards Act for compensation.
Payroll Calendar
A calendar of monthly pay dates is approved by the Board of Trustees. South Texas
ISD has two payroll periods bi-weekly and a monthly. The District pays all salaried
employees over 12 months, regardless of the number of months employed during the
school year. A salaried employee shall receive his or her salary in equal monthly
payments, beginning with the first pay period of the school year.
Payroll Payment Option
All new employees to the District have the option to choose their annual salary be
divided in 12 or 13 payments. A form must be signed by the employee electing the
number of payroll checks. This form must be turned in to the Payroll Department
immediately after hired.
Payroll Deductions
The District makes periodic deductions from employees’ salaries or wages in
accordance to state law. Also the District may reduce salary upon agreement executed
between the District and its employees or by agreed salary deductions such as annuities
or deferred compensation plans.
• Taxes
South Texas ISD must comply with the Federal Tax System and must deduct income,
Social Security tax and Medicare tax accordingly. A W-2 Form must be prepared
by District each year for employees, showing the employee's total gross earnings,
Social Security earnings, Medicare earnings, and federal and state taxes withheld
for its employees. W 2s are included with January paychecks. Requests for
duplicates should be directed to the Payroll office.
• Tax Withholding
Federal tax withholding will follow the W 4 filed with the Payroll office. A new W 4
must be filed before an employee’s tax status will be changed.
• Teacher Retirement System
South Texas ISD is under the Teacher Retirement System of Texas and must comply
with applicable laws and rules under the Gov’t Code Title 8; 34 TAC Chapter
25. A deduction for the required contribution to TRS will be deducted.

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 South Texas ISD

TRS is now requiring for school districts to report number of days worked per month
per employee. This will be used to determine if a certain employee has worked the
required 90 days per year to earn one year’s service credit. If an employee is out
due to injury, maternity, or other reason and is not paid, the day that is not paid will
be reduced from the number of days worked for that particular month.
• Annuities/Section 403(b)
Reference Board Policy CRG (LEGAL) as it states that the “District may enter into
an agreement with an employee to reduce the employee’s salary for the purposes of
making direct contributions to or purchases of an annuity or investment product that
meets the requirements of Internal Revenue Code Section 403(b) and otherwise
satisfies the definition of “qualified investment product.” The District may enter into a
salary reduction agreement only if the qualified investment product is an eligible
qualified investment and is registered with the Teacher Retirement System (TRS)
under V.A.T.S. Article 6228-5, Section 8A. Art. 6228a-5, Sec. 4(7), 5(a), V.A.T.S.”
• Other Deductions
The District must comply with other deductions mandated. Contact the Payroll
Department for more information regarding individual deductions that may apply to
you. Reference CFEA (LEGAL) Payroll Procedures Salary Deductions and
Reductions: For a complete list of TAX DEDUCTIONS that might apply to you; such
as deductions for student loan, divorce, etc.
Meal Periods for Non-exempt Employees
• Meals
Bona fide meal periods are not work time. An employee who does not have a
duty-free lunch will be compensated for time worked. In order to qualify as duty-
free, a meal must be twenty minutes or longer. The employee must be entirely
free from work responsibilities such as answering the phone, making copies or
performing any work.
Overtime Defined
Overtime should have prior Administrative approval. Unauthorized overtime will result
in disciplinary action; reference Board Policy DEA (LOCAL) – COMPENSATION AND
BENEFITS WAGE AND HOUR LAWS.
Overtime includes any hours worked in excess of forty (40) hours in the same workweek.
All overtime must be reflected on the employee’s timesheet/timecard. Overtime cannot
be waived. Classified employees cannot “donate” overtime or agree to reduced rates of
pay or other types of payment for their time worked. Administrators allowing employees
to work overtime without appropriate pay will be subject to disciplinary action.

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 South Texas ISD

The payroll department will not process payment for overtime hours without an
appropriate budget code and/or pre-approval signatures.
For exempt employees, overtime does not apply unless the employee meets the overtime
pay requirements under the FLSA.
Compensatory Time
The District’s option; nonexempt employees may receive compensatory time off, rather
than overtime pay, for overtime work. All compensatory time must have prior approval.
The employee shall be informed in advance if overtime hours will accrue compensatory
time rather than pay.
Compensatory time may be used at either the employee’s or the District’s option. An
employee may use compensatory time in accordance with the District’s leave policies
and if such use does not unduly disrupt the operations of the District. Reference Board
Policy DEA (LOCAL) - COMPENSATION AND BENEFITS – WAGE AND HOUR
LAWS for complete disclosure.
Pay Increases
The Superintendent shall recommend to the Board an amount for employee pay
increases as part of the annual budget. Compensation plans may include wage and
salary structures, stipends, benefits and incentives. Compensation Plans are prepared
by the Assistant Superintendent for Finance and Operations yearly. Compensation
plans are presented to the Board for approval of annual increases. Annual increases
should be budgeted accordingly.

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 South Texas ISD

Time Clock System

Time Clock reports are required for non-exempt employees and must be turned in on a
timely manner in order to be paid on schedule.
For monthly payroll employees, time-sheet deadline will be the 5th of the month. If
paperwork is not in the payroll office by the 5th of the month it will not be processed.
The employees will have to get compensation on the next payroll cycle.
A designee at each campus/location should review time sheets and absences prior to
getting approval to forwarding to the Payroll Office.
Documentation such as time sheets, prior authorization absence forms and absence
duty forms must be submitted to the Payroll Department on a timely manner. If late, the
Payroll Department has the right to process payment in the next pay period.
“Complete Payroll Reports” need to be turned in on a monthly basis with an absence
attached if applicable every month. All Para-professionals should turn in this report except
nurses both (LVN&RN).
The South Texas ISD requires that the authorized administrator or supervisor at each
campus approve payroll. All timesheets must be signed in order to be processed.
Prior Approval Form
For known absences such as personal leave, jury duty, travel, etc., must have Prior
Authorization. A Prior Authorization/Absence Form must be submitted for approval to
Administrator. After the absence has taken effect, the date can be posted and the Prior
can be forwarded to the Payroll office. For unforeseen absences, an absence form
should be submitted the day the employee comes back to work. Forms must be turned
in to the Payroll office along with the timesheet for proper processing.
Attendance Incentive
South Texas ISD has an employee annual attendance incentive program as initiative to
limit the number of absences; “Employees who have perfect attendance, with no state
or local days used during a school year, shall be paid a stipend of $750 in December
of the following school year. Employees who have a cumulative total of three or less
state and local days used during a school year, shall be paid a stipend of $500 in
December of the following school year.” Hourly employee absence calendar is
September 1 – August 31, and the monthly employee calendar is July 1 – June 30.
Direct Deposit
All employees will be under direct deposit, and must complete the District Direct Deposit
form. If emailed, it must come from the STISD email account. The Payroll Department will
verify by phone with the phone number on file. District records must be up to date. Upon
receipt of the completed authorization form the District will put the payroll check through
a “pre-note” process.
If the Payroll Department is not notified that an account is closed prior to forwarding funds,
the employee will be issued a check after the financial institution returns the funds.
Form W-4
All employees are required to prepare and submit a Form W -4 when hired. A new W -4
is required whenever the employee has a change in status.
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 South Texas ISD

When requesting a name change the employee must submit a copy of a new Social
Security card with the new name.
The filing of a false W-4 may be seen as tax evasion. [U.S. v. Williams (5th Cir, 1991)
No. 90-5569]
Verification of Check Run
South Texas ISD verifies all check runs as part of a payment process to employees.
This serves as a control for accuracy of payment.

Local Days

Five local days will no longer be reflected on your paycheck in September. The local day
will be added in .5 increments on your paycheck. Employees will earn .5 day per month
from September – June following Policy DEC (Local). Local days may only be advanced
by the Superintendent.

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 South Texas ISD

Accounts Payable
Accounts Payable Objective
The Accounts Payable department mission is to pay all invoices promptly in an accurate
and efficient manner. The school district is on a net 30 days’ payment terms; therefore, it
is very important to submit all required documentation promptly after making purchases
so payment may be processed on a timely manner.
Accounts Payable Staff
The primary responsibility is to pay all invoices in a timely and accurate manner. The
two assistants are assigned vendors by alphabetical order in equal amount of workload.
All documentation received by accounts payable, i.e. purchase order, packing slips,
paying copy, invoices, and statements, must be stamped “Received” and dated. After
reviewing the documents, the clerks shall identify which orders are complete and ready
to be paid and the ones that will be processed in the future. When payment is made, the
AP clerk should stamp all documents as Paid.
The files are to be maintained in the same order by both clerks and filed in the filing
room by “alphabet letter”. Each purchase order filed consists of:
1. Accounts Payable Copy
2. Invoice
3. Copy of Requisition
4. Copy of Quote
5. Packing Slip, when applicable
6. Travel Only – Copies of approval forms
It is the responsibility of the Accounts Payable clerk to obtain the invoices from the
vendors and the approval for payment from the purchasing/bookkeeper clerk so that a
check can be generated.
All invoices received are to be screened for accuracy and should reflect the exact
merchandise that was described in the purchase order. If the invoice includes state
taxes or finance charges, they shall not be paid; the assistant will call or e-mail the
vendor notifying them of the tax exemption status of the District and request an
adjustment on the invoices. All communications with the vendors shall be noted on the
purchase order along with the vendor’s name, the contact person, the time and date
and any topic of discussion. In case that the invoice totals more than the purchase order
amount, a new PO will be generated for the difference, and only 10% of the PO amount will
be approved for freight charges.
The AP clerks are also responsible for paying all utility bills (Water, electricity, gas and
telephone).

There is a two-week deadline to submit complete paying copies to Accounts Payable for
payment. Any travel advances for staff that do not meet the established deadlines, will be
treated on a reimbursement basis, after the traveler returns.

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 South Texas ISD

Purchasing
The Purchasing Department of the South Texas Independent School District is a part of
the Business Office and is responsible for the organization and administration of the
purchasing/procurement functions for the District in accordance with the authority
delegated by the Superintendent and Board of Trustees.

The primary function of the District’s Purchasing Department is to meet the products
and service needs of the District by:
1. Obtaining the best product at the lowest cost to the taxpayer while complying
with all federal, state and local laws as well as District policies and guidelines.
2. Achieving a reliable and timely delivery for the requesting school or department.
3. Promoting competition among bidders.
4. Insuring an equal opportunity for all vendors to secure District business.
5. Educating and informing all vendors about District rules, regulations, and
methodology that for the basis for bid awards.

As a support department of the District charged with the acquisition of goods and services
requested by instructional and administrative departments, the Purchasing Department
will function in a manner consistent with applicable laws, School Board policies, the
Uniform Commercial Code and other sound business practices.

The Purchasing Department shares with the Business Office and other fiscal offices the
responsibility of the expending District funds in such a manner that will meet all
requirements of the State, Federal, and District procurement regulations and safeguard
the public trust.

Effective purchasing is a cooperative venture between the Purchasing Department and

the schools and other departments within the District. The purpose of this manual is to
provide guidelines and procedures for the Purchasing Department staff and others
involved in the procurement process throughout the District.

Situations will undoubtedly arise which are not fully covered by these procedures. The
Purchasing Department staff is available to discuss and/or assist in any special
situations or needs that are in the best interest of the students and staff of South Texas
ISD.

The purchasing procedures contained in the document are intended to comply with all
applicable laws, policies, and procedures. In the event of conflict, the appropriate law or
policy shall prevail.

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 South Texas ISD

General Standards & Ethics

Ethics relating to conflicts of interest, financial interests in firms conducting business
with the district, kickbacks, gratuities and improper use of a position or confidential
information are clearly communicated throughout the District.

Additionally, District personnel shall be aware that under the School Law, Chapter
44.031, as well as other state or federal statutes regarding the expenditure of public
funds, there are penalties for violations of purchasing processes which can include
criminal prosecution and loss of employment opportunities.

There are certain common standards of ethics which govern the conduct of employees
involved in the purchasing function. The fundamental standards for the South Texas
ISD purchasing processes are as follows:

1. It is a breach of ethics to attempt to realize personal gain through public

employment with a district by any conduct inconsistent with the proper discharge
of the employee’s duties.
2. It is a breach of ethics to attempt to influence any public employee of a district to
breach the standards of ethical conduct set forth in this code.
3. It is a breach of ethics for any employee of a district to participate directly or
indirectly in a procurement when the employee knows:
a. The employee of any member of the employee’s immediate family has a
financial interest pertaining to the procurement.
b. A business or organization in which the employee, or any member of the
employee’s immediate family, has a financial interest pertaining to the
procurement; or
c. Any other person business or organization with whom the employee or
any member of the employee’s immediate family is negotiating or has an
arrangement concerning prospective employment is involved in the
procurement.
Integrity
Fairness and impartiality in all phases of the process are an essential part of any
transaction in public purchasing. Dealings with vendors and peers must be open, honest,
and objective.

Like all service functions, the Purchasing Department’s objective is to provide quality
service for the District’s schools and departments.

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 South Texas ISD

Purchasing Authority
South Texas ISD Board Policy Manual lists the following under CH (LEGAL) and CH
(LOCAL):
The Board may adopt rules and procedures for the acquisition of goods and services.
Education Code 44.031(d).

The Board may delegate its authority regarding an action authorized or required to be
taken by the District by Education Code Chapter 44, Subchapter B to a designated
person, representative, or committee.
The Board may not delegate the authority to act regarding an action authorized or
required to be taken by the Board by Education Code Chapter 44, Subchapter B.
Authorized District employees in charge of a department or school budget may purchase
items included in their approved budget, in accordance with administrative procedures.
The Board shall assume responsibility for debts incurred in the name of the District so
long as those debts are for purchases made in accordance with adopted budget, state
law, Board policy and the district’s purchasing procedures.
The Board shall not be responsible for debts incurred by persons or organizations not
directly under Board control; persons making unauthorized purchases shall assume full
responsibility for all such debts.

All purchase commitments shall be made by the Superintendent in accordance with

administrative procedures, including the District’s purchasing procedures, on a properly
drawn and issued purchase order.
Accordingly, the District has established the South Texas ISD Purchasing Department
under the direction of the Superintendent to assist the Board in the procurement function,
and to assure such function is within compliance of all applicable statutes, Board policies,
and Administrative Regulations.

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 South Texas ISD

Authorized Purchases
For a purchase to be considered an authorized purchase of the District it must have
been made in accordance with the procedures outlined in this manual. The following is
required prior to committing the District for any expenditure:
1. A properly completed Purchase Order
a. All requisitions must be accompanied by a quote. Requisitions with more
than one quote need the District Quote Form to be filled out and attached
to the requisition. District Quote Form, can be accessed via DocuSign.
b. Prior Authorization/Approval Form for travel with principal’s or
supervisor’s signature.
c. Travel Advance Request must accompany request for all travel
advancements, with required signatures
d. Reimbursement Form must accompany requests for all travel
reimbursements, with required signatures.
The district does not reimburse sales tax or gratuities.
2. Emergencies must have approval of the responsible District Senior Staff, and/or
Campus Administrator, along with a memo explaining the emergency accompanied
with the request the next business day. Emergencies must be communicated to the
Assistant Superintendent for Finance & Operations immediately.
3. Employees should not purchase materials with their own money with the intention
of being reimbursed by the district. Instead, purchasing procedures outlined in
this section should be followed.
a. District employees shall not be permitted to make purchases for personal use
through the District’s business office CH(local)
Commitment of Funds
The signature of the Assistant Superintendent for Finance & Operations or designee on an
official purchase order is the only legal binding commitment to purchase. No employee has
the authority to enter into purchase contracts or in any way obligate South Texas
Independent School District for procurement debt.

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Purchasing Approval
A purchase for goods and services cannot be made using District funds without prior
approval from the Purchasing Agent in the form of an approved Purchase Order. The
Board delegates to the Superintendent or designee the authority to determine the
method of purchasing, in accordance with CH (Legal) Policy. The Designee must approve
any exceptions to this policy prior to committing any District funds. Prior to the approval
from Purchasing Agent, District staff must adhere to the following guidelines:
• Purchase requisitions shall not be prepared and entered online unless the
purchase is necessary to the instructional program or the operation of the District.

• The release of an online requisition by the approving authority verifies the

necessity of the purchase.

• The user department/campus is responsible for checking the accuracy and

completeness of the information on the purchase requisition entered in the online
purchasing system and ensuring that the request complies with established
purchasing policies and procedures.

• Each online requisition must be approved online by the person who has final
approval authority for the funds associated with the purchase. This authority
cannot be delegated.

• Guidelines for the use of activity funds for purchases of goods and services are
available from the accountant’s office.

• The purchasing department staff will review the purchase requisition and the
Purchasing Agent will provide final approval after verifying compliance with the
District’s purchasing guidelines.

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Approving Authorities
The Purchasing Agent is delegated the authority to act as an agent for South Texas
ISD in carrying out the purchasing activities of the district:
Each principal, administrator, or coordinator act as purchasing agents for all expenditures
made from his/her campus/department funds.

Purchasing Staff
The purchasing staff is responsible for the procurement process and that they are in
accordance with the district, state, and federal guidelines. The staff provides information,
specifications, and price quotes. They also prepare formal and informal bid packages,
bid tabulations and awarding contracts as related to the procurement process. They
also assist in solving issues regarding shipment problems, payment problems, and return
of goods.
Once the procurement process begins, purchasing staff should handle all contact or
correspondence with vendors. It is important for departments to keep purchasing staff
well informed of changes or events that may affect a purchase and/or payment.
The following are the areas of responsibility for each staff position.

Purchasing Agent
The Purchasing Agent is responsible for major procurement negotiations of all major
contracts, responsible for the overall procurement process of the district, and
departmental operations.
District Purchasing Clerk
The District Purchasing Clerk is responsible for assisting in the review and organization
of requisitions and the distribution of all purchase orders. The clerk is also responsible
for, but not limited to, secretarial duties, handling communications between departments,
and coordinating training of district staff. The clerk is also responsible for implementing
the district’s procurement procedures, maintaining adequate supplier information,
maintaining procurement records and providing assistance to district staff in this area.

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Campus Bookkeeper/Purchasing Clerk

The campus bookkeeper/purchasing clerk will be the point of contact for his/her school
regarding the purchase of materials and supplies that come into the school. Their daily
work will consist of reviewing and editing purchase request orders from campus staff
and entering requests into the Ascender system.
Responsibilities
• Process purchase requisition orders and follow up on the purchase order.
1. Verify account codes
2. Verify product description, part number, and obtain price quote from
vendor
3. Follow up on Principal approval
• Match packing slips to appropriate purchase orders
• Maintain accurate records and reports on all orders
• Follow up on order status
1. Communicate with vendor any issues with order.
2. Keep staff informed on order and any issues that need to be resolved.
3. Alert Business Office on any issues with vendors that cannot be resolved
at their level.
Contracts and Agreements
Only the Board President, a n d t h e Superintendent, or their designees may sign
contracts or agreements requiring payment from any South Texas Independent School
District funds. Contracts or agreements not signed by the approved authorities will not
bind the District financially and will be the personal responsibility of the individual who
did sign the agreement or contract. The budget authority granted to a Principal,
Administrator, or Coordinator in no way authorizes them to execute contracts or make
purchases in the name of the District. All contracts and/or agreements must have a
purchase order in place before any goods or services are rendered.

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Purchasing Process
The purchasing process begins when the department/campus determines a need for
goods or services and ends when that need is met. The purchasing department provides
support to the schools and departments by monitoring or handling purchases in order
to ensure compliance with all applicable statutory and legal requirements, STISD Board
Policy, best practices, and adherence to the ethical standards advocated by the Texas
Association of School Business Officials.
The following criteria are used by South Texas ISD to evaluate the overall “best value‟
when awarding a bid:

1. The purchase price;

2. The reputation of the vendor and of the vendor’s goods or services;
3. The quality of the vendor’s goods or services;
4. The extent to which the goods or services meet the district’s needs;
5. The vendor’s past relationship with the district;
6. The impact on the ability of the district to comply with the laws and rules relating
to historically underutilized businesses;
7. The total long-term cost to the district to acquire the vendor’s goods and
services; and
8. For a contract that is not for goods and services related to telecommunications
and information services, building construction and maintenance, or instructional
materials, whether the vendor or the vendor’s ultimate parent company of
majority owner has its principal place of business in this state or employs at least
500 persons in this state; and/or
9. Any other relevant factor specifically listed in this bid.
This criterion is required under the Texas Education Code §44.031.
Schools and Departments are encouraged to utilize planning activities for anticipated
needs. Lead times vary for different purchasing methods so the administrator should
consult with the Purchasing Department to determine the proper purchasing method.
Items requiring Board action must be formally placed on the agenda. Principals and
department heads are responsible for the funds under their control. Requests for
additional funding or transfers from one budget category to another must be directed to
the Assistant Superintendent for Finance & Operations.
All district contacts for the purchase of goods and services, except contracts for the
purchase of product or vehicle fuel, valued at $50,000 or more in the aggregate for each
12-month period, shall be made by the method that provides the best value for the district
TEC 44.031
The district defines the term “aggregate, as the total sum of demand for “like” goods or
services made in a 12-month period for all campuses and departments within the school
district. The aggregate amount is based on a pre-determined set of categories or
commodity codes by fiscal year.
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 South Texas ISD

Procurement Levels
Schools and departments are encouraged to use vendors currently under contract with
the District or cooperative agencies for all procurements. If the District does not have a
current contract for the commodity or service needed, the following procedures apply.
➢ For purchases of personal property or services totaling less than $50,000 in the
aggregate for the fiscal year, schools and departments will be allowed to
purchase using the Best Value criteria for the individual transaction, with the
following guidelines:
➢ When utilizing a vendor that is not part of a purchasing cooperative, purchases of
$1,000 or more require three written quotes. District quote form must be
completed as supporting documentation (DocuSign)
➢ Purchases up to $50,000 may be made in the most expeditious manner possible
in order to meet the needs of the schools and departments. Approved and awarded
vendors shall be used for these purchases.
➢ When utilizing Federal Funds, purchases between $10,000 to $50,000 require
three written quotes. The District Quote Form must be completed as supporting
documentation. The requisition will not be processed until written documentation
of the quotes is provided.
➢ Purchases that exceed $50,000 per single item require board approval. The
Purchasing Department should be contacted so that best value practices can be
followed in the procurement process. The Purchasing Department can provide
lists of potential vendors and identify any potential problems or pitfalls that might
occur with the procurement.
➢ All federal purchases require written documentation justifying the purchase to be
reasonable, necessary, allowable, and allocable. The campus improvement plan
and district improvement plan shall be documented as well.
➢ Exception purchases for the purchase of snack items, drinks, restaurants, dance
halls, and flower arrangements.

The Purchasing Department maintains lists of vendors who have expressed interest in
doing business with the District. It is recommended to seek assistance from the
Purchasing Department in obtaining information on potential vendors.

Failure to follow these guidelines could result in a delay in processing your request. For
assistance in this process, or obtaining quotes, please contact the Purchasing
Department.

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 South Texas ISD

Produce and Fuel

There is an exception for produce and fuel that allows the District to use any method
listed above or those in School Code, 44.034 for these purchases.
Cooperative Purchase Programs
All items and services available through the Board approved cooperative have satisfied
all procurement regulations for competitive procurement. These items or services do not
require further bidding before being procured
Cooperatives award best-value contracts based on quality, proven performance,
customer satisfaction, and most importantly, pricing.
STISD currently belongs to the following co-ops:
• Texas Association of School Boards – Buy-Board
o https://www.buyboard.com
Phone: 800-695-2919
• Texas Department of Information Resources – DIR
o http:/www.dir.texas.gov
Phone: (512) 475-4700
• Texas SmartBuy Membership Program (formerly known as TPASS & TXMAS)
o https://comptroller.texas.gov/purchasing/members/
Phone: (512) 463-3368
• OMNIA (National IPA & US Communities
https://www.omniapartners.com/publicsector
Phone: 866-875-3299
• Region 1, Purchasing CO-OP, Child Nutrition and Library Services
o http://www.esc1.net/Page/917
Phone: 956-984-6178
• Region 3, Purchasing Cooperative of America - PCA
o www.pcamerica.org
Phone: 844-722-6374
• Region 13 & 20, Purchasing Association of Cooperative Entities – PACE
o https://programs.esc20.net/page/pace.home
Phone: (210) 370-5204
• Region 19, Allied States Cooperative
o http://www.alliedstatescooperative.com
Phone: (915) 780-5021
 TIPS- USA
o https://www.tips-usa.com/
Phone: 866-839-8477

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 South Texas ISD

• Choice Partners
o https://www.choicepartners.org
Phone: (877)696-2122
• Houston-Galveston Area Council
o https://www.h-gac.com/coop/default.aspx
Phone: (713)499-6665

Purchases under these contracts may expedite portions of the procurement process for
District departments and schools.

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 South Texas ISD

Professional Services
An additional exception applies to professional services as defined under Government
Code, Section 2254.003. These services include, but are not limited to, professionals
such as attorneys, architects, fiscal agents, or licensed medical professionals. Contracts
for professional services are not procured through competitive bids. Rather such services
are chosen through a process of selection involving the review of professional
qualifications.
Sole Source Exception
As allowed under School Code, 44.031, the District is allowed to purchase items available
from a s ingle source without complying with the competitive procurement provisions.
Sole source items are defined as follows:
1. An item for which competition is precluded because of the existence of a patent,
copyright, secret process, or monopoly;
2. A film, manuscript, or book;
3. A utility service, including electricity, gas, water (if available through a single
source) or;
4. Captive replacement part of component for equipment.
These exceptions do not apply to main-frame data-processing equipment and peripheral
attachments with a single-item purchase price of $15,000 or more.
Vendors claiming sole source status will be asked to provide written, signed, and
notarized documentation stating the reason for the sole source status. Departments or
schools may be requested to document the reason why the particular product is required.
A statement from the campus must be attached to the requisition, that indicates a
sufficient number of vendors have been contacted to determine that only one practical
source of supply exists or provides the reasons only one source exists.
Invoice Dates
Invoices shall not reflect a billing date earlier than the date printed on the purchase
order.

Written Specifications
It is important for the requesting department to write specifications that correctly fulfill
their needs. Specifications are the basis by which vendors prepare their bids.
Specifications should be functional describing performance and design. Care should be
taken not to intentionally or needlessly specify features or functions that may mislead a
vendor or limit the purchase to one vendor. Departments are urged to contact the
Purchasing Department if assistance is needed.

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 South Texas ISD

Bids and Awards

The purpose of bidding is to purchase goods and services through fair competition.
Awards are made to the bidder whose bid complies with specifications, terms,
conditions, and any other requirement stipulated in the bid and is the best value to the
District.
Separate, Sequential, or Component Purchases
When preparing requisitions, the requesting department must be aware that the employee
shall not intentionally or knowingly make or authorize separate, sequential or component
purchases to avoid the competitive bidding requirements.
• Component purchases means purchases of the component parts on an item
which in normal purchasing practices would be made in to one purchase.
• Separate purchases mean purchases made separately of items that in normal
purchasing practices would be made in to one purchase.
• Sequential purchases mean purchases over a period of time that in normal
purchasing practices would be made in to one purchase.
Violation of this provision is a Class B or C misdemeanor. Conviction may result in
confinement in a penitentiary, removal from office or dismissal from employment. Texas
Education Code-Subchapter B. - Sec. 44.032
Pre-Paid Purchases
No pre-payment for equipment or services will be allowed.
Generally, payment to a vendor is made when goods have been received or services
performed. Advance payments are not allowed except for certain purchases with
extenuating circumstances. In either case, the proper level of management approval
must be obtained before the District is obligated in any way.
Computers-Hardware and Software Purchases
Requests for computers and related equipment, such as software and maintenance must
be coordinated and approved by the Campus Technician/Instructional Technologist
regardless of funds used. Once their needs are identified, a requisition shall be prepared
and submitted for approval.
New Vendors
A W-9 and a Conflict of Interest form (CIQ) are required to be filled out by the vendor
and submitted to the purchasing department for setup.

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 South Texas ISD

Cancellation of a Purchase Order

In the event it is necessary to cancel a Purchase Order, the school or department must
advise the Accounts Payable Department. The Accounts Payable Department will close
the purchase order, and liquidate the funds encumbered. The school or department
placing the order must also notify the vendor of the cancellation of the purchase order.
Open Purchase Orders – When Approved
NOTE: Do not use open purchase orders when you know the quantity and unit price per
item to be purchased or one time purchases.
An open purchase order is issued to an approved vendor authorizing purchases from
that vendor over a specified period of time. Open purchase orders are valuable, because
they allow the purchase of items quickly. Both paperwork and related processing costs
usually are reduced by open purchase orders. However, open purchase orders must
follow certain criteria: approved vendors, limitation on the maximum amount for
purchases, a specific time frame for purchases covered by the open purchase order
(usually one month), and identification of authorized purchasers.
Open purchase orders are issued so that supplies, materials, or services are available
"as needed" by end users. These purchase orders eliminate numerous individual
purchase orders for small dollar-value items.
Open purchase orders are limited to the following departments:
• Food Service
• Maintenance/Custodial
• Transportation
However, the district may enter an open purchase order for lease payments, such as
copiers, and the like.
Certain controls shall be in place for the use of open purchase orders:
• The number of vendors to whom open purchase orders are issued is limited.
• Those who can make purchases under open purchase orders shall be clearly
designated.
• Dollar limits shall be carefully observed.

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 South Texas ISD

Copiers
When entering a requisition, in the description area, always enter the brand and model
number of the equipment, serial number of equipment and location of equipment and
number of months in lease.
An open requisition should be for the number of months remaining in the fiscal year
ending August 31.

Credit Cards
The district allows the use of vendor purchasing cards for approved expenditures. Cards
are not issued to individuals – all eligible employees may check out cards from their
school office with an approved purchase order. We currently have vendor credit cards
for the following vendors:
• HEB
• Wal-Mart
• Sam’s W holesale Club
• Hobby Lobby
• Lowe’s
• Home Depot
• Barnes & Noble
1. An approved purchase order MUST accompany the credit card to make
purchases.
2. It is important that requisitions submitted for approval be itemized as much as
possible. Please include ALL items that your campus representative intends to
purchase with that credit card on the purchase order.
3. After the purchase is made, the employee must return the card, purchase order,
and receipt to the campus Bookkeeper/Purchasing Clerk. Employee must sign
log book verifying the card has been returned.
4. All credit cards must be returned to the campus office within 24 hours of checkout.
5. Vendor credit cards shall NOT be passed around on your campus to be used by
multiple people. The person that signed the card out is responsible for that credit
card until it has been returned.
Sales Tax Exemption
Provisions under Article 21.023 of the Federal Statues provide tax exemption to the
school district. Exempt organizations are entitled to an exemption only on items
purchased and used directly and exclusively in pursuit of the exempt purpose. For school
districts, items purchased must relate to the educational process.

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 South Texas ISD

Gift Cards
South Texas ISD does not permit the use or purchase of gift cards with local, state, or
federal funds, unless specifically authorized by a grant program.
Purchase of gift cards for students is allowable out of student activity funds when
approved by the Assistant Superintendent for Finance & Operations.
Insurance Requirements
State law requires that any contractor entering a building or construction contract must
certify in writing that he provides worker’s compensation insurance coverage for each
employee of the contractor employed on the public project. This extends to any
subcontractors. All certificates must be on file at the District before work commences.

The District has chosen to extend this requirement to any contractor of the District.
Additionally, general liability and automobile coverage is required for any contractor
performing services on District property. Insurance certificates must list South Texas
ISD as an additional insured and should be on file at the District before work
commences.
Failure to produce proof of satisfactory insurance coverage will be a consideration for
non-award or contract termination.

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 South Texas ISD

Travel

Reimbursements for travel related expenditures will only be made for expenditures
related to conferences, workshops, meetings, etc. as outlined in board policy DEE
(Local) and BBG (Local).

Only necessary and actual expenses of travel by employees and board members of the
District will be paid by the District. All requests for travel reimbursement for district
business are expected to be reasonable and take into consideration limited District
resources.
All travel must be at the lowest available commercial rates: GSA rates will apply to out
of state travel and for hotel accommodations (for local or out of state). The maximum
per diem reimbursement rate for the first and last day of travel are at 75% of the GSA
meal amount less the incidentals. The entire receipt is reimbursable as long as the
amount does not exceed the 75% of the GSA amount. For out of state student travel,
sponsor must use the 58.33% approved percentage.
For example: The GSA rate approved for a t rip to Florida is $51.00, per day (not
including the $5 incidental). To calculate the per diem per student you would take the
$51.00 X 58.33 = $29.75. The $29.75 is your student per diem rate. However, the first
and last day is at 75% of the calculated GSA rate. You would take the $29.75 X 75%
= $22.31. This will be your new per diem rate for the first and last day regardless of time
of travel.
The District reimburses on actual incidentals such as taxi fare, parking fees, and extra
luggage. The District will not pay the $5 incidental without a receipt.

Travel Allowances

Travel allowances for in-state and out-of-state travel, in which the traveler receives a flat
per diem for lodging and/or meals, regardless of the actual amount expended, are not
allowable in Texas. Grantees must adhere to the guidelines stated above in lieu of a travel
allowance.

Travel Documentation

Travel costs must be properly documented to be reimbursable. The employee must

document travel costs with the Reimbursement Form. Auditable documentation must
include the following at a minimum:
 Name of the individual claiming travel reimbursement
 Destination and purpose of the trip, including how it was necessary to accomplish
the objectives of the grant project
 Dates of travel
 Actual mileage (not to exceed reimbursement at the maximum allowable rate)
 Actual amount expended on lodging per day, with a receipt attached (may not
exceed the maximum allowable)

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 South Texas ISD

 Actual amount expended on meals per day (may not exceed the maximum
allowable; taxes, tips and gratuities are not reimbursable)
 Actual amount expended on public transportation, such as taxis and shuttles
 Actual amount expended on a rental car, with a receipt attached and justification
for why a rental car was necessary and how it was more cost effective than
alternate transportation; receipts for any gasoline purchased for the rental car
must be attached (mileage is not reimbursed for a rental car—only the cost of
gasoline is reimbursed). Car rentals must receive prior approval by the
Superintendent.
 Actual amount expended on incidentals, such as hotel taxes, copying of materials,
and other costs associated with the travel
 Total amount reimbursed to the employee

Travel costs that are not supported by proper documentation as described above are not
allowable to be charged to TEA grants, and are subject to disallowance by state and
federal auditors and monitors.

Overnight Accommodations
The employee shall make every effort to schedule meetings and related travel times so
that overnight accommodations are not needed. Reimbursement for overnight
accommodations will only be made when travel time to the conference, meeting, etc.
from the home, school, or office would make it unreasonable for the employee to travel
to and/or from the business meeting or conference on the same day.
1. Employee traveling is responsible for presenting the Hotel Occupancy
Tax Exempt Form.
2. Any state taxed charged, will become the personal responsibility of the
employee.

3. Verify the hotel receipt that the credit card used to make reservation is not
charged.
4. If hotel charges your personal credit card, it is the employee’s responsibility to
dispute the charges.
5. Hotel receipts must be turned in to Accounts Payable. Other reimbursements
will not be processed until we receive the hotel receipt.
6. If hotel receipts are not submitted, the employee will become personally liable for
the entire hotel amount.
7. Entertainment and/or alcoholic beverage expenses are not reimbursed by the District.
8. Early bird check-in or any additional services requested for flights or car rentals are
not reimbursed by the District.
9. Valet parking is reimbursable at the standard parking rate, if standard parking is
available
The employee shall contact the hotel directly to make hotel reservations instead of using
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 South Texas ISD

third party companies. At times, when booking through a third party company, like
reservation counter, booking.com, hotels.com, etc., third party companies do not honor the
Hotel Occupancy Tax Exempt Form, charge service fees (which are non-reimbursable by
the district), or may charge the credit card in full, instead of placing a “hold” on the card.

Meals
Meals must include overnight stay. No receipts required for the business office; however,
a campus can require receipts to be submitted. Meals will still be reimbursed depending
on the times of departure and arrival, the only difference being that the daily rate will be
divided into thirds. State law prohibits reimbursement for alcoholic beverages. If meals
are included with conference registration fees, additional reimbursement for meals will
not be made to the employee if he/she chooses to go out for meals.
Employee/Sponsor allowance by meal Student allowance by meal
Breakfast $7.20 Breakfast $5.00
Lunch $14.40 Lunch $8.00
Dinner $14.40 Dinner $8.00
Note: State law does not allow reimbursement for gratuity.

Mileage
Mileage is currently reimbursed at $.585 per mile from January 1, 2022- June 30, 2022
and $.625 per mile from July 1, 2022 – December 31, 2022. South Texas ISD follows the
State rate for mileage reimbursement. All mileage reimbursements must include a copy
of an online mapping service identifying the total miles driven or vehicle odometer reading.
Mileage rate is subject to change in accordance with the State mileage reimbursement
rate.
Mileage reimbursement shall be submitted on a monthly basis.

Transportation costs
Means of transportation must be at the best value for the district. The employee and
his/her supervisor shall consider the expense of driving versus purchasing an airline
ticket, taking into consideration the time savings of flying, to determine which method of
travel shall be used. If flying, the employee shall plan for travel and purchase airline
tickets far enough in advance to secure the best possible fare.

Documentation from the campus must be provided, that shows a sufficient amount of
research was done when considering driving vs flying or flying vs driving.

The location from which the employee is flying must be at the best value for the district.

Use standard parking instead of valet parking

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 South Texas ISD

Travel Agency
In an effort to facilitate and expedite commercial air transportation at a reasonable
price the business office is allowing the following methods of booking a plane reservation.
Employees who require air travel should make every effort to obtain the lowest possible
airfare.

Use of own credit card - Employees will be reimbursed for expenses incurred for air
travel, provided these expenses were approved prior to the purchase.

Use of Travel Agency – employee is responsible for contacting the authorized travel
agency and obtaining a price quote for the most economical airfare reservation, regardless
if the airport location is more convenient. After obtaining a quote the employee must submit
to the campus/department bookkeeper for a requisition to be generated. It is the
responsibility of the bookkeeper to track the requisition until it becomes a purchase
order. The travel agency will not make any reservations without a purchase order number.

If a purchase order cannot be generated on time, it is the responsibility of the

Bookkeeper/ Purchasing to contact the Assistant Superintendent for Finance &
Operations at the Business Office for approval. They will call the travel agency and
authorize the request. However, the requisition needs to be in the system before
approval can be done. When calling in for approvals have the requisition number and
reservation number available.

Flight reservations should be made as far in advance as possible. By booking early you
are more likely to reserve a lower airfare and seat of your preference. If employee
books closer to departure, there is a greater chance of paying a higher airfare and
obtaining a less desirable seat selection. Reimbursement of first-class air travel is not
permitted.

Prior to Travel
1. The employee shall complete a “Prior Authorization/Absence Form for
permission to attend conference or workshop.” (Form is available through
DocuSign via the District website).
2. Request is approved by principal/administrator, signatures are required
3. Submit Prior Authorization Form along with requisition, and supportive
documentation for District approval
a. The Bookkeeper/Purchasing Clerk and the employee are responsible
for making hotel reservations and submitting a requisition to pay hotel
directly. Note: State Tax Exempt
b. The bookkeeper and the employee are responsible for the
conference/workshop registration and submitting requisition to pay the
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 South Texas ISD

registration.
i. NOTE: Advancements on lodging and registration fees are
discouraged and should only be requested as a last resort.
c. The employee is responsible for submitting a Travel Advance Request
Form for the following: meals and mileage. All other travel expenses will
be reimbursed upon return, with original receipts:
i. NOTE: 80% advancement at time of travel, 20% when the
reimbursement is turned in.
ii. 100% advancement when traveling with students.

After Travel:
1. Within ten days of return from travel, the employee completes the
Reimbursement Form.
2. Attach original receipts to the form – (for payments) no copies or faxes. For
expenditures made by credit cards, the original credit card slip must be attached
– Monthly statements are not accepted.
3. Submit Reimbursement Form, along with the signed Prior Authorization form
to attend, to Business Office for reimbursement.

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 South Texas ISD

Entering a Requisition:
1. If a staff member would like to purchase something, a request will be made to the
Purchasing Clerk/Bookkeeper.
2. The Purchasing Clerk/Bookkeeper should check the account code in the General
Ledger in Ascender to ensure that funds are available.
3. The Purchasing Clerk/Bookkeeper will obtain all necessary quotes and information
from the vendors.
4. The purchase requisition must now be generated in Ascender and submitted for
approval by the Campus principal/administrator, and anyone in the approval path.
5. All supporting documentation must be uploaded Ascender for review
Not doing this will only delay the requisition process.
7. The Principal/Administrator must now review the purchase requisition and click
“Approve” before it can be processed by the Purchasing Department. It is
advisable for each approver to set aside a certain time each day, every day to
review and approve purchase requisitions.
8. Once approved by the Principal/Administrator, and anyone in the approval path,
the Purchasing Agent will review the purchase requisition for accuracy, proper
account codes, approved vendors, and legal purchases. If any information is
incorrect, the Purchasing Department will enter comments in the comments
section and send it back so that the purchase requisition can be edited and
corrected in the system.
9. Purchasing Department will review and approve purchase requisitions each
business day. Please call if you need a requisition approved immediately.
10. The purchase order is released by the Purchasing Agent. After this step is done,
the campuses may print their own purchase orders.

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 South Texas ISD

Requisition Format
In order to avoid delays in processing, requisitions shall include all information
necessary to clearly define the needs of the user department or campus. The
information required includes the following:
• Vendor name and address
• Indicate if requisition has attachments in the attachment field
• Indicate if a check is required
• Quantity needed
• Price (per unit and in total)
• Purchase orders are to be input by line item
• Complete and accurate description of items to be purchased
• Requested by
• Reason – Specify what you are purchasing
• Payment terms, if any
• Discounts, if any
• Account code to be charged
• Transportation arrangements (shipping/freight costs, if any)
• Any special instructions must be typed in the body of the requisition
• Cooperative contract number must be typed in the body of the requisition
• Bid/Proposal number, if any (i.e. Bid/RFP 10-001, Buyboard 496-15, DIR-SDD 1951, etc.)
• In the bid field the following format is required
➢ Travel request - Travel
➢ Quotes - Quotes
➢ Sole Source - SS
➢ STISD RFP - Number assigned i.e. RFP 20-001
➢ Manufacturer Part - OEM
➢ Region One - ESC1
➢ Buy – Board - BuyBoard
➢ Department of Information - DIR
➢ National IPA - NIPA
➢ TXMAS - TXMAS
➢ US Communities - USC
➢ OMNIA - OMNIA
➢ PACE - PACE
➢ Choice Partners - CP
➢ Region 19 Allied States - ESC 19

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 South Texas ISD

➢ TIPS-USA/TAPS - TIPS/TAPS
➢ Other - MP
➢ Professional Services - PS

Requisitions received by the Purchasing Department are reviewed for the following
items prior to approval of a purchase order.
• Accuracy
• Adequate description
• Proper account coding
• Overall completeness
• Compliance with competitive procurement as established on Education Code
44.031.
Checking Purchase Order Status
You have the ability to check the status of the purchase order using the Purchase Order
Requisition Status. The Purchasing Department uses requisition comments to enter
comments regarding incorrect or missing information that the end user needs to correct
or provide in order for the requisition to be approved.
It is the end user’s responsibility to monitor purchase order status.
Receiving Orders:
1. Upon receipt of ordered supplies, the campus/department Purchasing
Clerk/Bookkeeper shall check the packing slip to ensure that everything ordered
was received.
2. If the order is complete, the Purchasing Clerk/Bookkeeper needs to submit the
packing slip to Accounts Payable for processing. If any items were not shipped
yet show on the packing slip, the Purchasing Clerk/Bookkeeper is responsible for
contacting the vendor to arrange proper shipment. If any items are on backorder,
the Purchasing Clerk/Bookkeeper must make notes of what was received and
leave the remaining items “open”.
It is very important to itemize and specify all of your purchase orders. If
you don’t know exactly what was ordered, you have no way of knowing
whether or not the purchase order is complete.
3. If the invoice arrives with the shipment, the Purchasing Clerk/Bookkeeper needs
to forward it immediately to Accounts Payable. (ALL invoices come directly to
the Business Office.)
4. Detailed invoices must be received in order for payment to be authorized and
information on invoice must match the packing slip of items received.
5. When the invoice arrives, Accounts Payable will then match the invoiced items to
the purchase order.

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 South Texas ISD

6. If everything matches and all requested items were received, the invoice is paid
and Accounts Payable closes out the purchase order in the system.
7. If items were received in the shipment that were not ordered, it is the
responsibility Purchasing Clerk/Bookkeeper to contact the vendor, return the
items, and obtain a credited invoice.
8. If all items were not received, the purchase order will remain open, encumbered
and on the system until all items are received or Accounts Payable is notified by
the campus/department that the purchase order is finished and needs to be
closed. If merchandise is not received within 30 days of partial shipment, the
bookkeeper needs to cancel back order items with vendor and notify Accounts
Payable to close purchase order.

9. Purchase orders must be for the exact items listed and freight must be included.
If the purchase order is not for the correct amount or freight was not included,
the Purchasing Department must authorize the increase before the goods are
shipped.

It is the responsibility of each campus/department to check open purchase

orders weekly and close out those that are no longer needed.

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 South Texas ISD

PURHCASING AND ACQUISITION CH(LOCAL)

Purchasing The Board delegates to the Superintendent the authority to make budgeted purchases
Authority for goods or services. However, any purchase that exceeds $50,000 per item shall
require Board approval before a transaction may take place.
Purchasing The Superintendent shall develop purchasing procedures to implement the
Procedures requirements of state and federal law. [See also CB, CBB, CH(LEGAL), and COA]
Purchasing The Board delegates to the Superintendent the authority to determine the method of
Method purchasing in accordance with CH(LEGAL) or CBB(LEGAL), as appropriate.
Competitive If competitive bidding is chosen as the purchasing method, the Superintendent shall
Bidding prepare bid specifications. All bids shall be in accordance with administrative
regulations, and the submission of any electronic bids shall also be in accordance with
Board-adopted rules. All bidders shall be invited to attend the bid opening. Any bid may
be withdrawn prior to the scheduled time for opening. Bids received after the specified
time shall not be considered.
The District may reject any and all bids in accordance with state or federal law, as
applicable.
Competitive If competitive sealed proposals are chosen as the purchasing method, the
Sealed Superintendent shall prepare the request for proposals and/or specifications for items
Proposals to be purchased. All proposals shall be in accordance with administrative regulations,
and the submission of any electronic proposals shall also be in accordance with Board-
adopted rules. Proposals received after the specified time shall not be considered.
Proposals shall be opened at the time specified, and all proposers shall be invited to
attend the proposal opening. Proposals may be withdrawn prior to the scheduled time
of opening. Changes in the content of a proposal, and in prices, may be negotiated
after proposals are opened.
The District may reject any and all proposals in accordance with state or federal law,
as applicable.
Electronic Bids or proposals that the District has chosen to accept through electronic transmission
Bids or shall be administered in accordance with Board-adopted rules. Such rules shall
Proposals safeguard the integrity of the competitive procurement process; ensure the
identification, security, and confidentiality of electronic bids or proposals; and ensure
that the electronic bids or proposals remain effectively unopened until the proper time.
Purchase All purchase commitments shall be made by the Superintendent in accordance with
Commitments administrative procedures, including the District’s purchasing procedures.
Personal District employees shall not be permitted to make purchases for personal use through
Purchases the District’s business office.

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 South Texas ISD

Account Codes
South Texas ISD uses a basic, 20-digit account code that is required for all purchases,
in accordance with the Financial Accountability System Resource Guide from TEA. The
composition of the code structure is as follows:
199 11 6395 00 001 2 11000
Fund Function Object Sub-Object Org Year Program Intent
In the example above, the expenditure would be for classroom supplies and materials
for the regular education program at BETA High School from the general fund.
Fund Codes
Governmental fund types for Texas school districts consist of four governmental fund
groups (General, Special Revenue, Capital Projects, and Debt Service) that account for
the acquisition, use and balances of expendable financial resources and related liabilities
as required by law or rule. The fund code designates the fund to which the expenditure
will be charged.
Example:
Special Revenue Fund could be coded 211. The 2 indicates the Special Revenue
Fund, the 11 specifies ESEA Title I Part A - Improving Basic Programs.
Function Codes
A function represents a general operational area in a school district and groups together
related activities. Most school districts use all of the functions in the process of educating
students or organizing the resources to educate students.
Example:
The function “Health Service (Nurse)” is coded 33. The first 3 specifies Support
Services - Student (Pupil) and the second 3 is Health Services.
Object Codes
Expenditures and expenses shall be classified by the major object classes according to
the types of items purchased or services obtained. Object codes for expenditures always
begin with the digit “6” and are used to describe exactly what is being purchased.
Example:
Money received for current year taxes is classified in account 5711. The 5 denotes
revenue, the 7 shows Local and Intermediate Sources, the 1 denotes local real
and personal property taxes revenue, and the final 1 specifies current year levy.
Sub-Object Codes
Sub-object codes provide the option for special or separate accountability for
expenditures at the local level.

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 South Texas ISD

Example:
A high school might set up sub-object codes to distinguish expenditures of specific
instructional activities, like science, math, etc. A business department budget
might set up different sub-object codes to differentiate expenditures between
supplies and non-consumable supplies.
Organization Codes
A mandatory 3-digit code that identifies the organization (i.e., High School, Middle
School, Elementary School, Superintendent’s office, Campus, Department, etc.). An
organization code does not necessarily correspond with a physical location. The activity,
not the location, defines the organization. Campuses are examples of organization codes
and are specified for each school district in the Texas School Directory.
Example:
Expenditures for BETA High School are classified as 001. This is a campus
organization code that is defined in the Texas School Directory for that high
school.
Fiscal Year Code
A mandatory single digit code that identifies the fiscal year of the transaction or the
project year of inception of a grant project.
Examples:
For the 2022-2023 fiscal year of the school district, a “3” would denote the fiscal year.
Program Intent Codes
The program intent code is used to designate the intent of a program/purchase provided
to students. These important codes are used to classify expenditures under specific
budgets for special student programs. Examples include bilingual, special education,
career & technology, and gifted & talented.
Example:
An entire class of physics is taught at the basic level. Program intent code 11
would designate Basic Educational Services.
Optional Code 3
A single code that is used at the local option.
Optional Codes 4 and 5
An optional 2-digit code that may be used by the district to further describe the
transaction.

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 South Texas ISD

FUNCTION CODES
R 11 Instruction
This function is used for activities that deal directly with the interaction between teachers
and students. Teaching may be provided for students in a school classroom, in another
location such as a home or hospital, and in other learning situations.
R 12 Instructional Resources and Media Services
This function is used for expenditures/expenses that are directly and exclusively used for
resource centers, establishing and maintaining libraries and other major facilities dealing
with educational resources and media.
R 13 Curriculum Development and Instructional Staff Development
This function is used for expenditures/expenses that are directly and exclusively used to aid
instructional staff in planning, developing and evaluating the process of providing learning
experiences for students. Expenditures and expenses include in-service training and other
staff development for instructional or instructional-related personnel (Functions 11, 12, and
13) of the school district.
R 21 Instructional Leadership
This function is used for expenditures/expenses that are directly used for managing,
directing, supervising, and providing leadership for staff who provide general and specific
instructional services.
R 23 School Leadership
This function is used for expenditures/expenses that are used to direct and manage a
school campus. They include the activities performed by the principal, assistant principals
and other assistants.
R 31 Guidance, Counseling and Evaluation Services
This function is used for expenditures/expenses that are directly and exclusively used for
assessing and testing students’ abilities, aptitudes and interests; counseling students with
respect to career and educational opportunities and helping them establish realistic goals.
This function includes costs of psychological services, identification of individual
characteristics, testing, educational counseling, student evaluation and occupational
counseling.
R 32 Social Work Services
This function is used for expenditures/expenses that are directly and exclusively used for
activities such as:
• Investigating and diagnosing student social needs arising out of the home, school or
community
• Casework and group work services for the child, parent or both
• Interpreting the social needs of students for other staff members

R 33 Health Services
This function is used for expenditures/expenses that are directly and exclusively used for
providing physical health services to students. This includes activities that provide
students with appropriate medical, dental and nursing services.

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 South Texas ISD

R 34 Student (Pupil) Transportation

This function is used for expenditures/expenses that are incurred for transporting students
to and from school.

R 35 Food Services
This function is used for food service operation expenditures/expenses, including the cost
of food, labor, and other expenditures/expenses necessary for the preparation,
transportation and storage of food to provide to students and staff.

R 36 Extracurricular Activities
This function is used for expenditures/expenses for school-sponsored activities outside of
the school day. These activities are generally designed to provide students with
experiences such as motivation and the enjoyment and improvement of skills in either a
competitive or noncompetitive setting.

R 4l General Administration
This function is for expenditures/expenses that are for purposes of managing or governing
the school district as an overall entity. This function covers multiple activities that are not
directly and exclusively used for costs applicable to specific functions. General
administration is an indirect cost applicable to other expenditure functions of a school
district.

R 51 Facilities Maintenance and Operations (New title effective September 1, 2005)

This function is used for expenditures/expenses for activities to keep the facilities and
grounds open, clean, comfortable and in effective working condition and state of repair,
and insured. This function is used to record expenditures/expenses for the maintenance
and operation of the physical facilities and grounds.

R 52 Security and Monitoring Services

This function is used for expenditures/expenses that are for activities to keep student and
staff surroundings safe, whether in transit to or from school, on a campus or participating
in school-sponsored events at another location.

R 53 Data Processing Services

This function is for expenditures/expenses for data processing services, whether in-house
or contracted. Examples of Function 53 costs are costs for computer facility management;
computer processing; systems development; analysis of workflows, processes and
requirements; coding, testing, debugging and documentation; systems integration; design
of applications supporting information technology infrastructure; maintenance of programs;
maintenance of networks; and those interfacing costs associated with general types of
technical assistance to data users.
R 61 Community Services
This function is used for expenditures that are for activities or purposes other than regular
public education and adult basic education services. These types of expenditures are used
for services or activities relating to the whole community or some segment of the
community.

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 South Texas ISD

EXPENDITURE OBJECT CODES

R 6219 Professional Services
This code is used to classify expenditures/expenses for professional services rendered by
personnel who are not on the payroll of the school district. These professionals are required
to be licensed or registered with the state (Engineering, Architect, Medical, etc.).
R 6223 Student Tuition - Other than to Public Schools
This code is used to classify expenditures/expenses for tuition if a school district is under
contract with an institution of higher learning or with non-public schools to provide
instructional services to students.
R 6239 Education Service Center Services
This code is used to classify all contracted services provided by the education service
center.
R 6248 Building Repairs/Grounds Upkeep (Locally Defined)-Contracted Maintenance
and Repairs
R 6249 Contracted Maintenance and Repair
This code is used to classify expenditures/expenses for normal contracted maintenance
and repair of items. This includes but is not limited to expenditures/expenses for normal
contracted upkeep, repairs of: (Furniture, Computers, Copiers, District-owned telephone
systems, Facsimile machines, Software upgrades, and Maintenance agreement fees.
R 6269 Rentals - Operating Leases
This code is used to classify expenditures/expenses for other rentals - operating leases.
This includes, but is not limited to, rental or lease of: (Furniture, Computers,
Telecommunications equipment, Audio-visual equipment, Vehicles (including buses),
Land, Buildings, Space in buildings, Grounds).

R 6295 Uniform Rentals (Locally Defined)

R 6299 Miscellaneous Contracted Services

This code is used to classify expenditures/expenses for miscellaneous contracted
services not specified elsewhere. These individuals are not licensed or registered by the
State (performers, bands, disk jockeys, athletic officials, etc.).

R 6321 Textbooks
This code is used to classify expenditures/expenses for textbooks purchased by the
school district and furnished free to students, certain classes or grades.

R 6329 Reading Materials

This code is used to classify all expenditures/expenses for magazine subscriptions and
newspaper subscriptions that are placed in classrooms, offices or libraries whether in print
or electronic format.

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 South Texas ISD

R 6395 Materials & Supplies-Consumable (Locally Defined)

This code is used to classify expenditures/expenses for those items of relatively low unit
cost (even though used in large quantities) necessary for the instruction process and/or
for administration. These items include: Consumable teaching and office items such as
paper, pencils, forms, postage, etc.

R 6398 Materials & Supplies-Non-Consumable (Locally Defined)

This code is used to classify expenses for furniture and equipment with unit costs of $500-
4,999.99 and with a useful life of one or more years. These are the items are tagged and
controlled.

R 6411 Travel and Subsistence - Employee Only

This code is used to classify the cost of: transportation; meals; room; registration fees
associated with virtual and in-person trainings, conferences, seminars, and in-service
trainings; and other expenses associated with professional development and traveling on
official school business.

R 6412 Travel and Subsistence - Students

This code is used to classify the cost of transportation (rental of vans, buses and other
vehicles), meals, participation fees, room, and other expenses associated with students
traveling for school sponsored events.

R 6419 Travel and Subsistence - Non-Employees

This code is used to classify the cost of transportation, meals, room and other expenses
associated with traveling on official school business not specified elsewhere. Travel for
individuals not employed by the school district. Registration fees associated with
attending conferences, including seminars, in-service training, etc. are also classified in
this account. This includes travel expenses incurred while traveling to school district
authorized activities, including transportation expenditures/expenses paid:
− To parents
− For board member travel
− For individuals not employed by the paying agency for allowances related to and/or for
participation in organizational controlled or directed activities.

R 6495 Dues (Effective fiscal year 2008/09; September 1 or July 1 depending on

fiscal year.
This code is used to identify expenditures/expenses for dues paid to clubs, committees, or
other organizations. Examples of organizations are TASA, TASP, TASB, Lions Club,
Rotary Club, local chambers of commerce and other associations. This does not include
any registration fees associated with attending conferences or seminars, which are coded
to account 6411.

R 6499 Miscellaneous Operating Costs

This code is used to classify expenditures/expenses for all other operating costs not
mentioned above. This account includes: Fees (not associated with travel), Awards, Bid
notices, Graduation expenses, Food/refreshments for school-related meetings,
Newspaper advertisements, etc.
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 South Texas ISD

R 6631 Vehicles per unit cost of $5,000 or more

This code is used to classify expenditures for the purchase of vehicles having a per-unit
cost of $5,000 or more and a useful life of more than one year.

R 6639 Furniture, Equipment and Software

This code is used to classify expenditures for all equipment, furniture, technology
equipment and capital outlay items having a per-unit cost of $5,000 or more and a useful
life of more than one year not classified elsewhere.

PROGRAM INTENT CODES

R 11 Basic Educational Services

The costs incurred to provide the basic services for education/instruction to students in
grades PK-12 prescribed by state law as well as adult basic and secondary education
services. Basic is defined as the curriculum provided for those students that are not in
special education. Basic educational services include the costs to evaluate, place, and
provide educational services to students in honors, college preparatory and advanced
placement courses. Costs incurred relating to:
• Basic services for education/instruction (PK-12) prescribed by Texas law, including:
- Regular education program for limited English proficiency students
• District/campus improvement plan
• Honors, college preparatory courses
• Advanced placement courses not designated as part of a gifted and talented program
• Adult basic and secondary education services

R 21 Gifted and Talented

The costs incurred to assess students for program placement and provide instructional
services (which are guided by the state plan) beyond the basic educational program and
that are designed to meet the needs of students in gifted and talented programs. Costs
incurred relating to:
• Gifted and talented programs
• Advanced placement courses designated as part of a gifted and talented program

R 22 Career and Technical

The costs incurred to evaluate, place and provide educational and/or other services to
prepare students for gainful employment, advanced technical training or for homemaking.
This may include apprenticeship and job training activities.

R 23 Services to Students with Disabilities (Special Education)

The costs incurred to evaluate, place and provide educational and/or other services to
students who have Individual Educational Plans (IEP) approved by Admission, Review
and Dismissal (ARD) committees. These plans are based on students’ disabilities and/or
learning needs.

R 24 Accelerated Education
The costs incurred to use instructional strategies in accordance with campus/district
improvement plans to provide services in addition to those allocated for basic services for
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 South Texas ISD

instruction, thereby increasing the amount and quality of instructional time for students at
risk of dropping out of school.

R 25 Bilingual Education and Special Language Programs

The costs incurred to evaluate, place and provide educational and/or other services that
are intended to make the students proficient in the English language, primary language
literacy, composition and academic language related to required courses.

R 29 Disciplinary Alternative Education Program – DAEP State Compensatory

Education Supplemental Costs
The supplemental costs incurred to provide services to students who are separated from
the regular classroom to a disciplinary alternative education program. These costs are
supplemental costs in relation to standards for base level education resource allocations
and must be described in the campus improvement plan.

R 30 Title I, Part-A Schoolwide Activities Related to State Compensatory Education

(SCE) and Other Costs on Campuses with 40% or More Educationally
Disadvantaged Students.
The SCE costs incurred to supplement federal awards for use on Title I, Part A
schoolwide campuses with at least 40% educationally disadvantaged students (including
fund code 211) in the amount of the SCE allotment used to supplement federal awards.
This program intent code is also used in the Special Revenue Fund for fiscal budgets
approved in notice of grant awards (NOGA) for schoolwide federal projects benefiting Title
I, Part A schoolwide campuses with at least 40% educationally disadvantaged students.

R 37 Dyslexia or Related Disorders

Dyslexia General Education, for services provided by LEAs using (HB3) dyslexia state
allotment funds to each general education student who has been identified as having
dyslexia or a related disorder under TEC, Section 48.103.

R 38 College, Career, or Military Readiness Outcomes Bonus

Funds allocated must be used in grades 8 through 12 to improve college, career, and
military readiness outcomes as described by TEC Section 48.110, Subsection (f)

R 99 Undistributed
All charges which are not readily distributed to program intent codes are classified here.
Program intent code 99 may be used when recording substitute teachers and on-behalf
teacher retirement payments in all function codes. This code may be used for costs not
clearly attributable to a specific program intent.

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 South Texas ISD

Guidelines for Cash Handling Procedures

Strong internal controls for cash collection are necessary to prevent mishandling of
funds and are designed to safeguard and protect employees for inappropriate charges
of mishandling funds by defining their responsibility in the cash handling process.
South Texas ISD Separates the components of cash handling – collecting, depositing,
and reconciling – so that one individual does not have responsibility for more than one
component.
Campus and Department procedures for handling of cash
1. Cash is to be counted by two people, who will verify the amount being
sent in for deposit. Make sure to fill out the Deposit Verification Form.
The form must be signed by both the individual who prepared the deposit
and the individual verifying the deposit.
2. All cash must be reconciled to its source. If the cash received is a result
of ticket sales, the cash received must be reconciled to the ticket count. If
the cash is a result of the sale of product, cash must be reconciled to the
change in inventory, as well as to the tape in the cash register if one was
used to record the sale. If the cash was the result of other orders for
events or merchandise, the cash must be reconciled to receipts or to a
receipt log.
3. Administrators will identify the staff to be responsible for cash handling
procedures, for example; sponsor, cafeteria manager, etc. Procedures
should include “backup” for situations when the primary staff are absent,
or unavailable. However, at no point may the bookkeeper receive or
handle cash.
4. Cash must be reconciled monthly, in all areas, to the district’s
reconciliation reports, to commercial bank accounts authorized and
maintained by the district.
5. If the reconciliation is to the district’s reconciliation report (for student body
accounts), the principal must review and sign the reconciliation report.
Reports shall be available for audit.
6. No cash or checks shall be forwarded through mail or messenger service
except in locked or sealed moneybags.
7. Funds belonging to the school district and funds belonging to the student
bodies shall not be intermingled, but shall be receipted for, stored and
otherwise handled as completely separate funds.
8. The cashing of personal checks from district or student activity funds is
prohibited.
9. The deposit of district or student body funds into any bank account that
has not been approved by the District Board of Education is prohibited.

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 South Texas ISD

10. Principals and other district personnel delivering monies to the District
Office shall deliver the money directly to a designated member of the
Business Office staff.
11. All checks shall be stamped for deposit.
12. Deposits shall be made intact, accompanied by deposit slip(s) and/or
supporting documentation from the school or department. Direct payment
out of receipts is prohibited.
13. Funds will not be taken home by employees of the District for
“safekeeping”.
14. Schools will identify areas to be used for counting and handling funds with
limited access and out of view of traffic.

Procedures for Storage of Cash

1. Each school shall store all money in the commercial safe with access
limited to a few (2 or 3) designated individuals. If money needs to be
stored overnight a deposit verification form should be prepared for record
of actual cash stored. In the event cash is stored overnight, it is limited to
only one night.
2. In the case of those schools and offices having facilities for keeping
money overnight, daily deposits should be made in order to reduce cash
on hand to an absolute minimum.
3. Money shall not be left in desk drawers, file cabinets, or other unprotected
places.
4. Notify campus Administrator and Assistant Superintendent for Finance &
Operations of any loss or theft of cash immediately upon its discovery
and provide written notice of such loss immediately after of occurrence.
Procedures for Receipt of Cash
1. All cash and check collections shall be recorded by the person receiving
the money. A cash receipt is to be prepared immediately upon receipts of
funds. An actual cash count should be made by the person receiving the
cash in the presence of the person turning in the money.

2. Under no circumstances shall a cash receipt be changed. If an error

occurs in the preparation of a cash receipt, void it and re-issue a new cash
receipt. Voided cash receipts should be kept in the receipt book.

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 South Texas ISD

Deposit of Funds
Bank deposit slips serve as receipt for all monies deposited and are vital supporting
documentation of accurate cash records and are prepared in triplicate form.
1. Bank deposit slips shall be prepared in triplicate for each deposit.

The original deposit slip will be retained by the bank; the duplicate copy will be
validated by the bank and returned to the depositor; the triplicate will be kept
for school/department records
2. The following information must be indicated on the bank deposit slip:
• The date and amount of deposit
• The listing of each check in the deposit and amount of the check
• The cash receipt number corresponding to the bank deposit must be
referenced
3. The person making the deposit slips, shall not be the person taking the deposit
to the bank.
All checks received for deposit must be made payable to the School District
and must be endorsed as follows:
• FOR DEPOSIT ONLY - (School Name & Bank Account #)
Petty Cash
Each school site maintains a petty cash of $300 or less for small, incidental purchases.
With prior principal approval, staff members may use this cash for small (less than $25)
expenditures.

All items purchased is to be used for an emergency, and in the event a purchase order
cannot be generated. Petty cash is to be used as a last resort. All reimbursements to petty
cash must be done on a monthly basis.

All expenditures must be supported by an original receipt. The following are NOT
acceptable forms of back-up: photocopies of receipts, faxes, credit card statements, or
other non-original receipts.

Expenditures and Reimbursements

1. Original receipts must be obtained for each petty cash expenditure. Such receipts
normally include cash register or point-of-sale receipts, or properly approved
"Received of Petty Cash" slips. For each disbursement, the following information
must be documented.
• Payee
• Date of purchase

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 South Texas ISD

• Amount
• Business purpose and description of purchase
2. To obtain replenishment of petty cash funds, a Petty Cash Reimbursement Form
must be used. The form, with all applicable receipts attached, shall be submitted
according to processes defined by the Business Office.
• Reimbursement requests must be signed by the custodian of petty cash.
• Reimbursement requests should be submitted in a timely manner.
3. Prohibited Uses
• Petty cash funds may not be deposited into personal bank accounts or
commingled with other funds.
• Petty cash funds may not be expended for:
➢ Salaries, wages, or similar payments to individuals.
➢ Payroll advances, travel advances, and loans to employees or
students
➢ Cashing checks for employees or other individuals.
4. Maintenance and Security of Funds
• Petty cash funds should be properly secured at all times. Access to the
funds should be restricted to one person (e.g., the petty cash custodian or
a specified cashier).
• Cash on hand and receipts for disbursements made should always equal
the assigned amount of the petty cash fund.
• Petty cash funds are subject to unannounced verifications by the
Business Office. At the time of the audit, the petty cash custodian must
provide a full accounting of the fund.
5. Monthly Review of Petty Cash Funds
• Monthly, the petty cash custodian and department head, or designee
(other than the custodian), are required to review each petty cash fund
under their control and verify the following:
➢ The fund is still needed for the amount authorized.
➢ The sum of cash on hand and receipts for unreimbursed expenditures
is equal to the amount which has been authorized.
➢ The funds are secured and not deposited in a separate bank account.
➢ This petty cash policy and supplemental guidelines have been
reviewed and the fund is being used in compliance with this procedure.
➢ Failure to complete the monthly review may result in the closure of the
petty cash fund.

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 South Texas ISD

Internal controls
1. Receipt monitoring
2. Spontaneous cash counts
3. Review the nature and extent of daily overages and shortages
4. Limited access/segregation of duties
5. The person taking the cash shall not be the same person making the deposit
6. Reconciliations shall be done daily, weekly and/or monthly
7. Reconciliations shall be performed by someone other than the person performing
the activity

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 South Texas ISD

Fixed Assets

Policy/Purpose
The general purpose of this policy is to provide guidance and procedures for the
safeguarding, stewardship, and accountability of school district fixed assets.
As used herein, the term “fixed assets” refers to the land, buildings, improvements,
machinery, equipment, furnishings, facilities, intangible assets, property, and other
resources purchased or otherwise acquired by the district.

Fixed Assets Definitions

1. State defined fixed assets: items that have a useful life of one or more years and
a unit of $5,000 or greater (capital assets).

2. Locally defined fixed assets: items that have a useful life of one or more years and a
unit cost of $500 and above (inventoried/controlled). Any electronic/handheld devices
that would be considered highly walkable items are also tagged (iPads, laptops, digital
cameras, tablets of all kinds, chrome books, etc.)

Asset Valuation
Fixed assets shall be recorded at historic cost. Cost shall include applicable ancillary
costs. In the case of gifts, the fixed asset should be recorded at fair market value at the
date of receipt.
1. Purchased Assets – The recording of purchased assets shall be made on the
basis of actual costs, including all ancillary costs, based on vendor invoice or
other supporting documentation.
2. Constructed Assets – All direct costs (including labor) associated with the
construction project shall be included in establishing the asset valuation.
3. Donated Assets – Fixed assets acquired by gift, donation, or payment of a
nominal sum not reflective of the asset’s market value shall be assigned cost
equal to the fair market value at the time of receipt.
Fixed Assets Threshold
All fixed assets valued at $5,000 or more per unit shall be purchased using the 6639
object code.
Items with a unit cost of $500 to $4,999.99 shall be purchased using object code 6398.

Electronic/handheld devices with a unit cost less than $500 shall also be purchased
using object code 6395. Any electronic/handheld devices that would be considered highly
walkable items are also tagged (iPads, laptops, digital cameras, tablets of all kinds,
chrome books, etc.)

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 South Texas ISD

Fixed Assets Estimated Useful Life

Estimated useful life means the estimated number of months or years that an asset will
be able to be used for the purpose for which it was acquired.

Transfer of Fixed Assets or Equipment

The Fixed Asset Transfer Form is used to transfer any fixed assets or equipment from
one location to another, whether for temporary assignment, permanent assignment or
disposal for auction.

Fixed assets or equipment may be transferred to surplus for auction or to another

campus or location within the district.

A completed transfer form must be filled out by the campus or department initiating the
transfer. The form is then sent to the receiving campus or department for proper
signatures. The original form with a l l required signatures should be sent to the Business
Office/Fixed Assets Department to make appropriate changes to the Fixed Assets
inventory.

No items will be deleted from your custody nor transfer changes be made from
the Districts fixed assets inventory without a completed transfer form.

1. Make sure you list the S T I S D Fixed Asset # (barcode number). Do not list the
manufactured barcode number.
2. Include the description of the item being transferred or disposed (i.e. computers,
laptops, printers, etc.).
3. Include the serial number of the items.
4. Transfer of assets or equipment (chairs, desks, monitors, keyboards,
overhead projectors, etc.) may be written together on the transfer form with a
combined quantity.
5. Make sure your Campus Technician has approved the transfer of all computers,
printers and other technology equipment. The Campus Technician must also
remove or destroy all information on CPU’s & laptop’s hard drive before disposing
or sending to auction.

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 South Texas ISD

Surplus/Auction of Equipment
Items which are no longer needed or functional and cannot be used by another campus
or department can be sent to surplus for auction. Any computer or computer equipment
must be sent to the campus technician to remove or destroy all information stored on the
hard drive, before it is sent to surplus.
A completed Fixed Asset Transfer Form must be filled out by the campus or
department initiating the surplus. The completed form with both signatures should be
sent to the Business Office. The Accountant at the Business Office will review the form
and send it to the Assistant Superintendent for Finance and Operations. Upon board
approval, the Finance Director will release the form back to the campus. Campus
technician will receive the form for technology items and campus bookkeeper will
receive the form for non-technology items. The technician or bookkeeper will contact
the maintenance department to notify for the items to be picked up. Upon pick up from
maintenance, the technician or bookkeeper will confirm the pick up through DocuSign and
everyone will receive a final copy.
Equipment purchased with federal or grant funds must follow grant guidelines for proper
equipment disposal.
Stewardship/Custodial of Equipment
Principals and department supervisors are responsible for the accountability of fixed
assets/equipment assigned to their campus/department. The Principals may assign an
individual at their campus to safeguard and account for the fixed assets at their campus;
however, the principal/department head remains accountable for all fixed assets
assigned to their school/department.
Physical Inventory of Fixed Assets
A periodic physical inventory is necessary for accountability and control. It confirms the
reliability (or lack of reliability) that can be placed on the fixed asset accounting system
by verifying the actual existence of the items represented by the fixed asset records.

The Business Office shall conduct inventory verifications of all fixed assets assigned
to the campuses at least once a year. The results of the inventory shall be recorded
to the Fixed Assets system. A Fixed Assets Transfer Form should be prepared and sent
to the Business Office/Fixed Assets Department for any fixed assets lost, stolen, or
determined to be missing during the course of the year or physical inventory.

All staff should report any lost or missing fixed assets assigned to them or their area
immediately to their principal/department head using a transfer form. If equipment was
stolen or lost, submit a transfer to the Business Office within 3 days of the incident.

The Business Office/ Fixed Assets Department may conduct a random physical inventory
of campus/department fixed assets.
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Receiving and Tagging of Fixed Assets

Since STISD does not have a centralized receiving warehouse, each
campus/department is responsible for assuring that all fixed assets that meet the
threshold be tagged with a STISD asset tag.

Each campus is responsible to coordinate with the Business Office/Fixed Assets

Department for the tagging of their fixed assets at least once a month or when receiving
a large number of fixed assets that meet the thresholds as described above, the
following information will be needed for all fixed assets for your campus:

1. STISD Asset Tag #

2. Description of item/equipment
3. Serial #
4. Model #
5. Vendor #
6. Purchase Order #
7. Room # or location of asset
8. Custodial or individual asset assigned to

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 South Texas ISD

Activity Funds Defined

HB 3646, 81st Regular Legislative session, requires school districts to adopt a policy
governing the expenditure of local funds from vending machines, rentals, gate receipts,
or other local sources of revenue over which the district has direct control. The policy
must require discretionary expenditures of local funds to be related to the district’s
educational purpose and provide a commensurate benefit to the district or its students and
meet the standards of Section 52, Article III, of the Texas Constitution regarding
expenditure of public funds. The South Texas ISD School Board of Trustees adopted
policy CFD Local in response to this legislative change.
The Financial Accountability System Resource Guide (FASRG) has been used as
a resource to compile this Activity Fund Manual.
If assistance is needed in any area of our business operations, please contact the
Business Office.

Activity funds consist of resources received by student groups or campus administration.

All funds must be held by each school and must be expended in accordance with
conditions of the fund. That fund will encompass the care and administration of those
activities and functions relating to student and faculty programs. THE SCHOOL
PRINCIPAL IS PERSONALLY RESPONSIBLE FOR THE PROPER COLLECTION,
DISBURSEMENT, AND CONTROL OF ALL ACTIVITY MONIES RELATED TO
FUNDS IN HIS/HER TRUST.
The Activity Fund includes both Campus Accounts and Student Accounts and it is
intended to account for campus funds held by an individual campus. Activity Funds are
used to promote the general welfare of each campus and the educational development
and morale of all students. The accounting function for the Activity Fund is delegated to
each campus. Compliance to the established policies and/or procedures described in
this manual is mandatory.
Non-Activity Funds are assets of external groups (Education Foundation, etc.), not
considered Activity Funds and are not the accounting responsibility of the Campus.

Campus Accounts Vs Student Accounts

A distinction exists between monies benefiting student groups (Student Accounts) and
monies benefiting the District (Campus Accounts).
Campus Accounts – contains money raised locally at the campus or donated to the
campus. Campus Activity Fund Accounts belong to the Campus and/or District and the
transactions are to be segregated from Student Accounts and separately accounted for.

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Campus Activity Fund Accounts are considered administrative accounts and must
adhere to State and Board Policy, District Regulation, and are thus subject to the
procurement laws of the State of Texas. See CH (LEGAL) – Purchasing and
Acquisition and CH (LOCAL) – Purchasing and Acquisition. Campus Activity Fund
Accounts must be treated in the same manner as the General Fund campus accounts
(budgeted allocated accounts).
CFD (LOCAL) Activity Funds Management requires the District establish regulations
governing the expenditure of campus activity fund account accounts. They must ensure
expenditures:
1. are expended for the benefit of the District
2. and they must be related to the District’s educational purpose
Student Accounts – contain monies accumulated from the collection of student fees
and approved fund-raising activities. Funds collected by student groups shall be used
only for purposes authorized by the organization or upon approval of the sponsor, CFD
(LOCAL) – Accounting: Activity Funds Management.
To establish a student activity account:
1. the club should have an approved constitution
2. club charter (bylaws)
3. elected officers
4. hold meetings
5. have approved minutes
Student Activity Fund monies belong to the various student groups and not the Campus
and/or District. The Club Account students have the sole responsibility for deciding how
to spend the money.
Student activity funds shall be used exclusively for the benefit of students. Typical uses
include travel, awards, banquets, supplies, etc. These funds shall be used at the
discretion of the student organization through designation of one or more of its officers.
All expenditures drawn from Student Accounts must be approved in minute meetings, and
as stated above, exclusively for the benefit of the students.
Requests for expenditures must be:
1. signed by the appropriate Club Account student officer,
2. signed by club sponsor
3. approved by campus administrator
4. signed for process by the campus bookkeeper.
The club minutes shall support all expenditures.
The assigned organization sponsor (professional staff member) shall be responsible for
the proper management of the student activity accounts. Annual training will be
scheduled to assist the organization sponsors in managing their respective student
activity account(s).

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Club Sponsors for the Student Accounts must be faculty members who are full-time
employees. Student activity funds (under the control of the principal) shall be collected,
receipted, and deposited to the district’s depository bank at least 3 times per week.
An Authorization to Conduct a Fund Raiser shall be submitted to the campus principal in
advance of the scheduled activity. In addition, at the end of the fundraising activity, a
profit loss statement should be filed with the principal. The forms must have proper
signatures.
Audit
Activity Fund files are audited every quarter for compliance to policy and procedures.
All responsible personnel must comply with the fiduciary responsibility to the student’s
accounts and maintain proper documentation for receipts and disbursements.

Club folders should include the following documentation

 Approved annual budget
 Constitution and Bylaws
 Club Sponsor Affidavit
 Fundraising Application form with calendar of activity
 Profit and Loss Statements

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Responsibility
Roles and Responsibilities – Campus Principal
▪ Has ULTIMATE responsibility for all Student Activity Funds
▪ Safekeeping of money
▪ Approval of fundraising activities
▪ Schedules fundraising activities appropriately so that they do not interfere with
instruction
▪ Approval of disbursements in accordance with procedures manual
▪ Proper accounting and administration
▪ Manage fundraising activities

Roles and Responsibilities – Club Sponsor

▪ Must signs a Responsibility Affidavit
▪ Attend training
▪ Maintain records
▪ Deposit funds collected daily to campus secretary
▪ Complete forms as needed by the club; requests to Conduct Fundraiser forms
as required, Fundraiser Profit/Loss Report, Check Request Form, Deposit
Verification Form
▪ Has ultimate Fiduciary Responsibility to club
Roles and Responsibilities – Campus Secretary
• Monitors approved fundraising activities and keeps calendar of scheduled fund-
raising activities
• Provides Business Office with a copy of scheduled fundraising activities on a
monthly basis
• Assists club sponsors with daily deposits; receives, counts, and verifies monies

Roles and Responsibilities – Campus Bookkeeper

▪ Monitors approved fundraising activities and submission of funds
▪ Processes check requests
▪ Reconciles accounts
▪ Prepares and distributes monthly club statements
▪ Informs Principal of problems and concerns
▪ Posts deposits and disbursements on a daily basis
▪ Keeps up to date ledgers of deposits and expenses for each club account
▪ Prepares for Audit of records

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Bank Reconciliation
Upon receipt of the monthly bank statement, the balance indicated on the statement
shall be reconciled to the checkbook balance and general ledger cash-in-bank balance.
The bookkeeper reconciles the Activity Fund accounts on a monthly basis, by the 10th
of the following month. Once the reconciliation is complete, the bookkeeper should send
a copy of the bank reconciliation and bank statement should be sent to the Business
Office. Bookkeeper should also distribute monthly club statements so that sponsors
verify ending cash balances. If balances agree, the Sponsor signs and returns the
statement to bookkeeper agreeing to the balances. Any variance should be reviewed
and settled. If an undetermined discrepancy occurs, the Business Office must be
contacted immediately.
Cash Management
• All cash and checks shall be de posited to the campus secretary on a daily
basis.
• No post-dated checks will be accepted
• Funds should not be kept in classrooms, drawers, personal wallets or purses,
or any other undesignated area
• Monies kept overnight must be kept in a vault or safe. A Deposit Verification
Form must be filled for accountability of monies being kept overnight. Monies
kept overnight are limited to one (1) night. Money cannot be kept over
weekends. Money must be taken to the night deposit in a sealed bank deposit
bag.
• No cash purchases should be made – every dollar collected should be
receipted and deposited to the campus secretary. The campus secretary shall
receipt [in a bound, pre-numbered receipt book] and deposit all monies at
least 3 times per week to the district’s depository bank, or secure overnight
in a locked campus safe if the deposit cannot be made the same day. A
Deposit Verification Form should be included with all deposits.
• Receipts shall be issued for all money transactions. The flow of money
and the receipts must support all money collected and deposited.
• All receipts issued shall follow the following guidelines:
➢ An official receipt book with pre-numbered, bound receipts in triplicate.
➢ A copy of the receipt must be given to the person paying (sponsor).

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➢ A copy of the receipt must remain in the receipt book.

➢ A copy of the receipt shall be attached to the deposit documentation.
➢ Receipts shall not be altered.
➢ Voided receipts (white original copy) must be attached to the receipt book.
➢ Receipts are not to be pre-dated or pre-signed.
➢ Receipt numbers must be used consecutively.
Personal employee checks shall not be cashed from monies collected at the
campus or district level to ensure an adequate audit trail of all funds collected by
the district.
Check requests without all of the supporting documentation will not be accepted,
nor processed.
State law requires that the district pay all invoices within 30 days to avoid penalty and
interest charges, so all invoices shall be submitted on a timely basis for payment.
Checks not cashed by the expiration date (3 months from date of issue) will be voided.
Consultants or Contracted Services
Consultants are non-employees who are contracted to perform a personal or
contracted service, include services such as repairs, DJ, judges, embroiderers or other
performers. You must obtain a W-9 Form and a Conflict of Interest Form from the
consultant and submit to the Purchasing Department.

Please review the District’s Purchasing Manual for further guidance on qualifications for
a consultant.
Disbursements
All expenditures drawn from Student Accounts must be approved in minute meetings.
Disbursements for payment and/or reimbursement shall follow the approved check
request and proper documentation alignment.

Activity Fund checks are the sole means of disbursement. Observe the following items:

• Checks must be generated by the Activity Fund Accounting System and must
contain two authorized signatures.
• Authorized signatures are those of the Campus Principal and designee(s);
two signatures are required on all checks.
• Under no circumstances shall Campus Bookkeeper/secretary be the
authorized signer.
• Under no circumstances shall checks be pre-signed.

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Lost or returned Activity Fund checks must be voided. Contact the Business Office for
further assistance regarding “stop payment” on checks.
Check Request Form
Check Request Forms are the means by which disbursements are made and must:

• be completed by Club sponsor

• have required signatures (Club Sponsor, Club Officer, and Club Treasurer)
• must have funds available before requesting a check
• must clearly describe the purpose, service or materials being purchased
• include all supporting documentation (original receipts, invoices, packing slips
and student participation list if applicable)
• have final approval by the appropriate principal or administrator
• Under no circumstances shall Check Request forms be pre-signed
• An original form shall be used for every disbursement request NO COPIES
The Check Request Form shall not be altered. If an error occurs, initiate a new form.

Invoices

Vendors are required to submit all invoices to the Student Activity Campus Bookkeeper.
Payment should be made on original not copies.
Texas law requires that all invoices be paid to vendors within 30 days of receipt of the
goods/services. If the district fails to pay promptly, the vendor may assess penalty
interest charges. If a staff member neglects to submit an invoice on a timely basis,
he/she may be held personally liable for the penalty interest charges.

Deposits
Monies remitted for deposit may be in the form of cash and/or checks and are tabulated
in the DEPOSIT VERIFICATION FORM. The Tabulation of Monies Collected from
Students should also be attached to the Deposit Verification Form, with club sponsor and
student officer treasurer signature. Deposits are to be processed daily. They are to be
verified and confirmed. One verification and one confirmation signature is required.
When accepting checks observe the following:
• Checks – All checks received for deposit must be payable to the campus and
must be endorsed as follows:

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• FOR DEPOSIT ONLY - (School Name & Bank Account #)

• Note the appropriate club account
Note: Post-dated checks shall not be accepted from any source.

Deposit Documentation
The Deposit Verification Form is used for tabulating cash and/or checks received.
• ALL deposits must include a completed DEPOSIT VERIFICATION FORM
• DEPOSIT VERIFICATION FORM is intended as cash distribution documentation
• DEPOSIT VERIFICATION FORM serves as receipt documentation
• DEPOSIT VERIFICATION FORM serves as verification and confirmation
of deposit

The Deposit Verification form is to be filled out by a club officer or designee, signed by
the club sponsor, principal and by the person verifying the deposit. The Deposit
Verification form should not be ALTERED. If an error occurs, a new form shall be initiated.
All verification forms must be kept for audit purposes.

Bank Deposit Slip

Bank deposit slips serve as receipt for all monies deposited and are vital supporting
documentation of accurate cash records and are prepared in duplicate or triplicate form.

1. White (original) – sent to Bank

2. yellow - Activity Fund Files
3. the confirmed bank deposit kept with reconciliation documentation
4. pink-remains in deposit book
The following information must be indicated on the bank deposit slip
1. date and amount of deposit
2. The listing of each check in the deposit and amount of the check
3. A notation of the cash receipt number issued in support of the bank deposit
4. The club the deposit belongs to
** The amount of the supporting cash receipts must be in agreement with the Deposit
Verification Form and Deposit slip.

Bank Depository Bags

Disposable plastic bags are recommended for deposits.

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1. Monies remitted for deposit must be placed in disposable plastic bags

2. Disposable plastic bags are intended to protect both Club Sponsors and Campus
Secretary
3. Depository bags are available through the District-approved depository bank
Locked money bags are recommended for safekeeping of all monies. Campus should
make efforts to acquire as needed.

Donations and Gifts

Donations or gifts of cash or cash equivalents (gift cards), equipment, or materials to
individual schools or to the district by individuals or organizations shall become property
of the district. The Donation Form shall be completed by the donor. All donations shall be
Board Approved prior to accepting any monetary or non-monetary donations. District
employees are prohibited by law from intentionally or knowingly offering, conferring,
agreeing to confer on another, soliciting, accepting, or agreeing to accept a personal gift
or benefit.

Cash donations shall be deposited to the appropriate account in accordance with the
cash/check handling procedures. Gift card donations shall be recorded on a Gift Card
Register and maintained in a safe until utilized by the appropriate individual(s).
Donated equipment shall have an inventory tag affixed to it if the unit value is greater than
$500, or if items is a highly walkable item, and in compliance with fixed assets procedures.
In addition, the equipment shall be added to the district inventory.
Fixed Assets & Inventory
All fixed assets and inventory equipment purchased with Campus or Student Activity
funds become the property of South Texas ISD. All assets and inventory shall be tagged
and tracked in accordance with the district’s fixed asset procedures. Notify the Business
Office/Fixed Assets Department upon receipt of the receiving items that need tagging.
For more information, please review the Fixed Assets Section of the manual.
Fundraisers
Fundraising activities by student groups and/or for school-sponsored projects shall be
allowed, with prior administration approval and under the supervision of the project
sponsor, for students in all grades. However, fundraising should not be allowed without a
budget approved by the Assistant Superintendent for Finance & Operations. The following
guidelines must be followed:
1. All fundraising projects shall be subject to the approval of the principal
2. Fundraising form must have all supporting signatures before fundraising
3. A profit and loss statement shall be completed as the fund-raising ends
4. Fund-raising monies should be deposit daily
5. NO CASH TRANSACTIONS are allowed with fund-raising monies
6. All fundraising disbursements should be done by check
7. A calendar of events must be kept by Campus secretary and campus
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Bookkeeper
8. Only TWO fundraisers per club per year are allowed; Exceptions to the
rule need to be approved by the Business Office.

Merchandise ordered for resale should be distributed to students on a written

distribution log (refer to Fund-raising Documentation Forms). The merchandise
distribution log shall reconcile with the corresponding invoice and/or packing list.

All fundraising documentation shall be subject to audit and must be kept on file for (5)
years from the date of the fund-raising event.

It is important to remember that student participation in approved fund-raising activities

shall not interfere with the regular instructional program.

A copy of all fundraising activities must be submitted to the Business Office.

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 South Texas ISD

Gift Cards
The purchase of gift cards through Campus funds is unallowable. Gift cards donated
to the district by outside sources are also taxable to the employee according to IRS
regulations. South Texas ISD discourages the use of Gift cards. If acquired through
student activity accounts, proper documentation shall support their use. However,
purchase of gift cards through student activity accounts require approval from the
Assistant Superintendent for Finance and Operations.

Payroll Expenditures from Activity Funds

All South Texas ISD employees shall be paid for all work performed through the Payroll
system. At no time shall a district employee be paid directly from an activity account, or
with cash.

Schools and departments are encouraged to use vendors currently under contract with
the District or co-op agencies for all procurements. If the District does not have a current
contract for the commodity or service needed, the following procedures apply.
➢ For purchases of personal property or services totaling less than $40,000 in the
aggregate for the fiscal year, schools and departments will be allowed to
purchase using the Best Value criteria for the individual transaction, with the
following guidelines:
➢ Purchases up to $3,500 may be made in the most expeditious manner possible
in order to meet the needs of the schools and departments. Approved and awarded
vendors are encouraged to be used for these purchases.
➢ Purchases of $1,000 or more require three written quotes when utilizing a vendor
that is not part of a purchasing cooperative.
➢ Purchases $3,500.01 to $49,999.99 require three written quotes if utilizing federal
funds. The requisition will not be processed until written documentation of the
quotes is provided.
➢ For all purchases over $50,000, board approval is required. The Purchasing
Department should be contacted so that Best Value practices can be followed in
the procurement process. The Purchasing Department can provide lists of
potential vendors and identify any potential problems or pitfalls that might occur
with the procurement.
➢ Purchases that exceed $20,000 per item require board approval.
➢ Exception purchases from HEB and Wal-Mart for the purchase of snack items,
drinks, produce and foodstuff, restaurants, dance halls, and flower arrangements.

The Purchasing Department maintains lists of vendors who have expressed interest in
doing business with the District. It is recommended to seek assistance from the
Purchasing Department in obtaining information on potential vendors.

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 South Texas ISD

Failure to follow these guidelines could result in a delay in processing your request. For
assistance in this process, or obtaining quotes, please contact the Purchasing
Department.

Sole Source Exception

As allowed under School Code, 44.031, the District is allowed to purchase items available
from a s ingle source without complying with the competitive procurement provisions.
Sole source items are defined as follows:
1. An item for which competition is precluded because of the existence of a patent,
copyright, secret process, or monopoly;
2. A film, manuscript, or book;
3. A utility service, including electricity, gas, water (if available through a single
source) or;
4. Captive replacement part of component for equipment.
These exceptions do not apply to main-frame data-processing equipment and peripheral
attachments with a single-item purchase price of $15,000 or more.
Vendors claiming sole source status will be asked to provide written, signed, and
notarized documentation stating the reason for the sole source status. Departments or
schools may be requested to document the reason why the particular product is required.
A statement from the campus must be attached to the requisition, that indicates a
sufficient number of vendors have been contacted to determine that only one practical
source of supply exists or provides the reasons only one source exists.

Raffles - Unallowable
School districts are not allowed to conduct raffles. Attorney General Opinion JM-1176
ruled that independent school districts are not qualified to hold charitable raffles. An
unauthorized raffle is considered gambling under the Texas Penal Code – Class C
Misdemeanor.

Receiving of Goods
Upon receipt of the goods, the invoice along with the packing slip must be turned in to
bookkeeper in order to process payment. All invoices shall be paid within 30 days.

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 South Texas ISD

Returned Checks
All returned checks shall be deducted from account balance until the outstanding amounts
have been collected from the payee. To minimize returned checks all checks accepted
must have proper identification. If a check is returned due to insufficient funds, the
sponsor shall make efforts to restitute the check. When normal collection process has
failed to resolve the insufficient check the Office of Criminal District Attorney | HIDALGO
COUNTY, TEXAS recommends the following:
• The merchant must send written notification to the check writer informing check
writer of the returned check.

• The written notice must be sent by certified mail or First Class Mail to preserve
the presumption of intent for prosecution. If the notice is sent via First Class
Mail, then the merchant must also provide our office with a copy of the letter and
an Affidavit of Service.
If no restitution was accomplished, the bad check will be written off by the activity fund
sponsor with the approval of Student Officer. It is up to the discretion of the principal if
the bad check will be forwarded to the District Attorney for action. If further action will
be taken it is recommended that the bookkeeper:
• Take to the District Attorney’s Office the original check as stamped by the bank,
or a legible certified photocopy (of both the front and back) from the bank in lieu
of the original.
• The signed return receipt from the certified letter, or the unopened unaccepted
letter.
• A copy of the letter sent to the check writer, which should include the name,
address, phone number, and any other identifying information on the check
writer.
Student Trips
Planning is of importance when traveling:
• Staff and Student Travel Request must be approved by the Board before planning
trips.
• Once approved, the campus administrator has the authorization to approve the
trip and its expenditures.
• Monies must be in club funds prior to approval of expenditures.
For more travel guidelines, reference the District’s Purchasing manual.

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Transfers between Activity Accounts

Funds may be transferred between Campus Activity Funds at the discretion of the
campus principal. Transfer of funds between Student Activity Funds shall be approved
by the members of the student clubs, the club sponsors and the campus principal. A
Transfer Form must be completed, approved and signed by appropriate students and
personnel.

Sales Tax
• Exemption Form

The sales tax exemption form shall be used for school-related purchases only. All
purchases made for the exclusive use of a campus must be tax exempt. A Texas Sales
and Use Tax Exemption Certification must be remitted to the merchant.

Copies of the exemption form may be obtained from the business office or via the web
at www.stisd.net. Taxes, which should have been exempt, will be unauthorized for
reimbursement if the exemption form is not presented to the vendor at the time of the
purchase.
Purchase of personal items for staff or students are not eligible for the sales tax
exemption. Misuse of the exemption form for personal purchases constitutes a
misdemeanor.

Taxable Status of Purchases Revenue

Sale vs. Not a Sale
A determination must be made regarding the status of all revenues and whether-or-not
they constitute a sale. A sale is the transfer of title or possession of tangible personal
property for consideration, i.e., pencils, food, etc.
At times, the campus merely acts as a sales agent for a retailer; tax must be collected
and remitted to the retailer who would claim the sale and remit the tax to the State
Comptroller’s Office.
Campuses do not need to report this type of revenue as a s ale, i.e., vendor-owned
vending machines, school pictures, book fairs, etc. Other examples include money
collected for field trips, library fines, etc. Only when campuses purchase
inventory/merchandise for resale are they considered the reseller.
Taxable Vs. Non-Taxable Sales
Texas Sales Tax Statutes impose tax on the sale, lease, or rental of tangible personal
property that can be seen, weighed, measured, felt, touched, or that is perceptible to the
senses in any other manner. W henever an individual purchases a tangible, it becomes
personal property and is taxable. It is irrelevant if the Campus/District logo is affixed to
the item or in what capacity the item will be utilized.

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 South Texas ISD

Districts, campuses, and/or campus groups selling taxable items must collect and remit
sales tax on a monthly basis. As a seller, you are responsible for collecting and remitting
the correct amount to the Comptroller’s Office. If you do not collect and remit the correct
amount, you may owe any additional tax, plus, you may be assessed penalties and
interest.
The items or activities on the following lists have been identified as being taxable or
non-taxable by the State Comptroller’s Office when sold or sponsored by a school. The
lists are not all-inclusive but may help in making determinations on other similar items.

Non-Taxable Sales
Admissions - athletic, dances, dance performance, drama
and musical performances
Admissions - summer camps, clinics, workshops, project
graduation
Admission - banquet fees
Admission - bids, prom, homecoming
Admission - tournament fees, academic competition fees
Cosmetology services (products sold to customers are
taxable)
Discount/Entertainment cards and books
Facility rentals for school groups
Food items sold during fundraisers
Identification Cards - when they are sold to entire student
body (not just the fine for a lost ID card)
Labor - automotive, upholstery classes (parts are taxable)
Magazine subscriptions greater than six months
Services - car wash, cleaning

The following link from the Susan Combs, Texas Comptroller of Public Accounts
website provides more information and guidance regarding this matter:

http://www.window.state.tx.us/taxinfo/taxpubs/tx94_183.pdf

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 FORMS
All forms are accessible on the District website via DocuSign:

https://www.stisd.net/facultystaff/resources-logins

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