Updated: 7/16/02

Questions and Answers About Clearing Accounts

What is a clearing account?

It is a separate bank account for the purpose of safeguarding money which belongs in the school site budget.

What money collected at the school site belongs in the school site budget?

Any money collected or donated for the purpose of the instructional program or the operation of the school site belongs in the school site budget. For example, money collected for lost books, lab fees, field trips, assemblies, library fines, and voluntary testing should be deposited in the clearing account.

Why does the money have to go into the school site budget instead of the Parent Club account, the Student Body account, or a personal checking account?

The California Education Code requires that all money requested by or donated to the district for the instructional program or the operation of the school site must be deposited in the district's account in the County Treasurer's office. When the money is received, it becomes "public funds" and must be accounted for accordingly.

How do we get the money from the clearing account to the County Treasurer's office?

Once a month, after you have received your bank statement, the money should be transferred to Fiscal Services with a Form A-1: Clearing Account Transfer or an Income from Outside Sources form indicating which program codes should received the money. Fiscal Services will deposit the money in the County Treasurer's office and place the entry in your school site budget.

Should all the money be transferred out of the clearing account each month?

If money has been deposited since the bank statement was issued, you could transfer all the money on the bank statement to your school site budget; however, if no other money has been deposited since the bank statement was issued, leave approximately $50 in the account until more money is collected.

Can expenses for field trips be paid by writing a check from the clearing account?

No. All expenses related to the instructional program or the operation of the school site must be paid from the school site budget.

Can we pay for a field trip from the school site budget if the money is still in the clearing account?

Yes. The expense can occur prior to the transfer of the money.

What do we do if a company doesn't take a purchase order and they need the check for a field trip right away?

If the amount is $200 or less, you can issue the check from your revolving cash account. If the amount is above $200, prepare the check request memo and send it to the Accounting Supervisor, Accounts Payable, in Fiscal Services. She will prepare the check according to your request. If the check is needed immediately, fax the check request memo to the Accounting Supervisor, Accounts Payable, so she can begin working on it; however, in order to release the check, she will need the original memo. The original memo can be sent through the pony or hand delivered if you want to pick up the check. The Fiscal Services fax number is 925-609-8768.

What do we do with checks from parents which include funds for instructional activities, student body activities and the parents club all in one check?

Deposit the checks in the clearing account and then write one check from the clearing account to the student body account for the total amount due to the student body, and then write another check to the parents club for their portion. This is the only time a check can be written from the clearing account for anything other than transferring the money to the school site budget. Checks cannot be written to the student body account or the parents club unless it is for the purpose of transferring money which belongs to them.

What account codes are available for the special activities for which money is collected?

Any existing account code can be used. Some program codes were created specifically for this purpose:

Elementary Schools
0340 - Elementary Schools Field Trips and Special Activities
0343 - Outdoor Education
0350 - Special Activities - Kindergarten
0351 - Special Activities - First Grade
0352 - Special Activities - Second Grade
0353 - Special Activities - Third Grade
0354 - Special Activities - Fourth Grade
0355 - Special Activities - Fifth Grade

Middle Schools
0740 - Middle Schools Secondary School Field Trips and Special Activities
0743 - Secondary School Outdoor Education/On Location
0746 - Field Trips/Special Activities - Sixth Grade
0747 - Field Trips/Special Activities - Seventh Grade
0748 - Field Trips/Special Activities - Eighth Grade
0756 - Interdisciplinary Activities - Sixth Grade
0757 - Interdisciplinary Activities - Seventh Grade
0758 - Interdisciplinary Activities - Eighth Grade

High Schools
0744 - High Schools Secondary School Opportunity Classes/PSAT Testing

Do we have to account for the special activity money by teacher?

No. The decision to account for the special activity money by teacher is up to the individual school site; there is no requirement to do so.