Closing the Books
 Books of all schools should be closed promptly after the end
of the school year. Books may be held open until July 15 of each
year for the purpose of recording and paying obligations in-
curred within the preceding fiscal year.

Financial Report
 A monthly financial report is to be filed with the county su-
perintendent at the end of each month or period by the princi-
pal, as determined by the regulations of the county board of pub-
lic instruction. The financial report is a cumulative report (Form
FA-35p), and the last report will constitute the annual report.

 In addition to the above financial report, many counties pre-
pare a financial statement or statements of the income and the ex-
penditures by activity. Included in the financial statement for
each activity should be the previous month's balance, total re-
ceipts for the month, total expenditures for the month, and the
balance in the fund at the end of the month. Though the state-
ments are not part of the uniform system, it is desirable to have
this information as a breakdown of the minimum required ac-
counts shown on the monthly financial report.

 Internal Accounting Safeguards

 Recommendations made in this section are based upon com-
mon errors found in various school records. The following pro-
cedures, if established and consistently followed, should prevent
many errors in recordkeeping:

 1. Issue a receipt for all monies received.

 2. Make all payments by check except petty cash items.

 3. Total and rule the Distribution Ledgers before preparing
 the monthly report.

 4. Report (to the county finance officer or auditor immedi-
 ately) any errors that cannot be traced to source or cor-
 rected.

 5. Maintain the current balance after each transaction in
 the ledgers and check stubs.