Director of Auditing Services
Thomas Doughty, CICA, CFS440 N. Broad Street
Suite 341 - 3rd Floor, Portal D
Philadelphia, PA 19130
The principal should appoint a school store manager who will have general supervision of this operation. This responsibility must not be given to a student.
Special care must be exercised over store funds. Misappropriation of cash or inventory could go unnoticed due to lack of oversight. Cash and inventories should be adequately safeguarded at all times.
School stores are run for the convenience of the students rather than as a fund-raising activity. However, a small profit may be required to maintain satisfactory inventory levels, operating costs and losses. Therefore, the only system-wide guideline that can realistically be offered is that the Principal must determine the most prudent policy.
a. A fixed amount change fund ($100 maximum) should be maintained in the cash register. It is required to keep this money in the school safe at night and over weekends.
b. The store manager should record the register reading at the end of each day on Form H-216, Store Manager’s Report. The difference between successive readings should represent the day’s sales.
c. The store manager is to count the money in the cash register at the end of each day. After deducting the amount of the change fund, this count should reflect the sales shown by the register reading. All differences should be noted on Form H-216.
Payments should be made only by check, prepared by the SOO on presentation of a supplier’s original invoice supported by an approved voucher (Form H-201).
All merchandise received should be counted by the school store manager. A physical inventory should be taken on or about the last day of school. The store manager should list the physical inventory showing item description, quantity, unit cost (last invoice price) and total cost. Copies of the listing should be filed with the Principal and the SOO. The inventory count taken should be observed by the assistant principal and reviewed by the principal.
Merchandise should be kept under lock and key whenever the store is not open for business.
Accounting Records and Financial Statements
The store manager should maintain separate ledger accounts for the purchase of supplies and all other major operating expenses to be used by the store manager for the preparation of financial statements.
At the end of each term, the store manager should prepare financial statements on Form H-217 (School Store Financial Statements). Copies should be given to the Principal and the SOO.
Collection of Pennsylvania Sales Tax in School Stores
All school stores must collect the Pennsylvania Sales Tax for articles on which the tax would be collected in any commercial establishment in the Commonwealth. For additional information please refer to Information Bulletin to Public Schools from PA Department of Revenue
The activity sponsor has a fiduciary obligation with potential legal ramifications to collect and remit Pennsylvania sales tax in a timely manner in accordance with applicable laws.
©School District of Philadelphia|
440 N. Broad Street Suite 341 - 3rd Floor, Portal D - Philadelphia, PA 19130
Phone: 215-400-5498 Fax: 215-400-4541