Introduction and General Purpose:

With the continued growth of Lakeway Christian Schools into a model with multiple campuses serving the multifaceted needs of the community, the implementation of a principled accounting system is necessary. It is essential that we utilize a uniform standardized framework along with robust internal controls in order to produce financial data that:

• Provides the board with financial information that presents fairly and with full disclosure the financial position and results of financial operations.
• Provides reliable financial information as a basis for program evaluation and budgetary planning.
• Gives our organization’s financial statements greater credibility with governmental units and educational organizations; whose interests and decisions are dependent upon the financial information provided to them.
• Enhances the comparability of financial reporting.

Accountability:

Lakeway Christian Schools (LCS) shall establish procedures to ensure that all internal school funds are handled properly, consistent with the requirements of board policy, and in a manner that minimizes the impact on instruction. School officials are in a position of public trust and shall be held accountable for that trust. Prior to authorizing or requiring collections, management shall evaluate the ability of school personnel to provide adequate accountability demanded by the public. Supervisors and individual school principals should never require, authorize, or otherwise sanction school collections that cannot be adequately accounted for.

General Principles:

The finance department shall promulgate policies, rules, and regulations pertaining to student activity, cafeteria, and other internal school funds. Such funds shall be administered in accordance with Generally Accepted Accounting Principles (GAAP) guidelines and additional policies set forth and adopted by the board.

Recording and Reporting Transactions:

While the methods of recording and reporting transactions vary depending on the situation, basic information related to all transactions must be prepared and retained on file, regardless of the accounting methods used. NOTE: All manually prepared documentation (e.g., ticket reconciliations, collection logs) should be recorded in permanent ink.

Principles for Internal School Funds
When developing rules and regulations for internal school funds, the following principles must be observed:

1. Public Ownership of Funds and Property
    Any money or property received by a school official, employee, or volunteer while acting in an official capacity is considered public money or property. Such funds are the property of the school and must be properly safeguarded and managed.
2. Connection to Educational Experience
    Activities or events that generate student activity funds should generally enhance the educational experience of students. These activities should complement, not conflict with, the school’s instructional program.
3. Compliance with School System Policies
    All fundraising activities and use of school facilities or equipment to raise internal funds must comply with school system policies. Policies should also account for the cost associated with the use of school facilities.
4. Restricted Funds Usage                                                                                                                                                                                      Money collected for a specific group must be spent in a way that benefits the current program.