Workshop for Booster Clubs & Parent Organizations Riverside Unified School District March & April 2016 Presenter: Dusty (Ferguson) Nevatt, Partner Vavrinek, Trine, Day & Co., LLP 1

Objectives of Workshop Purpose of a Booster Club & Parent Organizations How to Become an Approved Parent Group or Booster Club Financial Procedures & Fundraising Introduce & Review “Guidelines for Parent Groups & Booster Clubs” Forms & Reference Materials Best Practices 2

Purpose of a Parent Group or Booster Club Parents, community members, staff members coming together for the purpose of supporting specific school activities for the benefit of students such as athletic teams, debate teams and musical & other groups Integral part of the overall student’s educational experience 3

What is a Parent Organization or Booster Club? Parent & community organization Formed to assist student groups with additional resources Separate entity from district & school Not the legal responsibility of the district or school site Not under the direct control of the district or school site Authority to set controls & procedures 4

District Authority Education Code Requires prior board or designee approval before soliciting contributions for student body 5

How to Become an Approved Booster or Parent Group Submit an annual application List of officers & contact information Banking Information Current approved Constitution & Bylaws List of current activities & fund-raisers Annual financial statements Forms Hold Harmless Agreement – signed by President Acknowledgement form from each officer 6

Parent Groups & Booster Clubs Approval required by School Site Principal/Board Approval granted for one school year Renewal required each year Approval can be revoked by Board PTA & PTSA – automatic district approval – information still needed 7

Booster Clubs/Parent Group Need own Tax ID # Recommend Tax-Exempt Status – 501(c)(3) Non-profit, tax-exempt status is required for donations to be tax deductible Not Sales Tax exempt May need Seller’s Permit if planning to sell goods or merchandise Website information available on page 5 of “Guidelines” 8

Constitution & Bylaws Name and purpose of organization Executive Board & Officers Positions, duties & responsibilities Membership & Tenure Meetings Method of amendments to Constitution Dissolution of Booster Club 9

Constitution & Bylaws Elections & qualifications Finances Committees Successions Terminations Audit Committee 10

Bank Account Requirements Need own bank account Use Booster Tax ID # - not district # Funds cannot be co-mingled with ASB Recommendations Officers as authorized signers Checks signed by two individuals Daily or weekly deposits Monthly bank account reconciliation 11

Insurance Requirements (3 options) Obtain your own General Liability Insurance to cover ALL activities & events Register your events & activities with district provided insurance under ASCIP Submit all events & activities on roster You will be notified if NOT covered Specific Event Insurance For those events not covered by ASCIP 12

Insurance Requirements General Liability Policy $1,000,000 per occurrence Additional Insured Endorsement Riverside USD must be additional insured Available: ASCIP – Deborah Nobles (562)

Questions on Purpose, Application & Approval Process, Insurance, etc. 14

Fundraising Each fundraising event should have a purpose & reason Reason should align with purpose of organization & educational benefit of students Notify & coordinate with Principal/Designee Cannot interfere with school fundraiser Per Ed. Code – Restrictions apply to on-campus solicitation of students 15

16 Fundraising Conducted by adults Students are not required to fundraise Volunteer - students are not members of Booster No teacher or student can be required to raise or sell “minimum” amounts Cannot track student accounts Cannot co-mingle funds with ASB

Fundraising Submit list of planned fundraising events/activities to School Site Principal/designee at beginning of school year Changes should be submitted three weeks prior to event Promotes open communication & coordination between school & groups 17

School-Connected Food Sales On-site sales cannot happen until one hour ½ hour after school ends Pending Board approval Subject to inspection by County Health Dept. & food handling requirements Comply with federal/state laws & district policies & regulations Nutritional standards – School Wellness Policy ASB clubs have first priority 18

Raffles and Auctions Federal & State rules govern these events Raffles (including 50/50), Donation Drawings, Duck Derby, Bingo, etc. Revenue & Taxation Code 23701(d) Schools & Districts cannot conduct Raffles & Auctions Penal Code Sections 320 &

Questions on Fundraising 20

Financial Procedures Budget & Monitoring Estimated revenues & expenditures Financial Reporting Reporting to Membership Mid-year & annual reports to school Document all receipts Procedure for cash handling No individual should personally benefit from Booster Club or Parent Group activities 21

Document Cash 2 people count all cash Use a cash register or Cash Log Sheets 3-part receipt books Pre-numbered tickets & Ticket inventory Copies of receipts with all $$ Keep money safe - Don’t leave $$ lying around Documentation available for Auditors or audit committee 22

Handling Cash All collections need to be documented Bank Deposits Daily if possible – weekly at a minimum Petty Cash Reasonable amounts for type of fundraiser Check out and check in records 23

Donations Cash Supplies & Equipment Transportation Indicate purpose Accepted by ASB Student Council Accepted by District Board of Education 24

Purchases for Schools Purchases made by parent groups/booster clubs shall be donated Schools can make requests for donations Groups can ask for donation requests Maintenance Dept. needs to approve items that require ongoing maintenance 25

Purchases for Schools Business Office needs to approve items that require a maintenance contact Items over $5,000 and uniforms must have prior approval of Principal These items need to be handled by the Purchasing Department Booster Club or Parent Group makes donation in advance 26

Payments Each disbursement should be approved Appropriate documentation Invoices – receipts – packing documents No direct payments to district employees District employees will need to be paid through district payroll Parent Groups & Booster Club will be invoiced 27

Support Personnel District employees cannot work for a Booster Club or Parent Group during their work hours Employment for any reason must be approved by the site Payment to employee will be made, if approved, through District Payroll and Booster Club/Parent Group will be invoiced for all costs 28

Coaching Stipends Booster Clubs, Parent Groups and ASB Accounts can pay for coaching stipends. A Booster Club or Parent Organization does not have the power to hire an individual for a coaching position. Booster Clubs and Parent Organizations must work with the school to provide payment. 29

Coaching Stipends A Booster Club or Parent Organization cannot make a payment directly to an individual for coaching services. All stipends must strictly follow the district guidelines for payment and all contractual obligations. 30

Process - Support Personnel Board approval is required BEFORE any services are provided Make donation to cover cost Principal submits Personnel Requisition Employee hired through regular process by the Human Resource Division Employee will be paid after timecard is approved and submitted 31

Gifts & Awards Gifts for parents & students should be an expression of appreciation – not a significant monetary gift No gifts to students should be made without approval from coach or parent No gifts of cash 32

Other Procedures Consultants Follow IRS guidelines 1099s IRS guidelines Required for $600 or more paid for services Use of Facilities Application for Use of District Facilities form Available on website or at school office Annual Audit 33

Audit & Audit Committee Made up of members that are not involved in the day-to-day financial activities of your organization Responsibility for Audit Audit should occur annually Changes in Treasurer or those responsible for handling money Change in authorized signers 34

Records Retention Should have a procedure for retention & destruction of records What to keep Minutes, Bank Records Cash Receipts & Disbursement Records General Ledger Constitution & Bylaws Non-Profit Records, Income Tax Returns, etc. 35

Questions on Procedures 36

Guidelines for Parent Organizations & Booster Clubs New document Includes guidance on approval process and offers recommended procedures for financial operations Questions & Answers section relating to parent organizations & booster clubs Copy of Board Policy & Regulations Provides forms to be used Will be available on District website 37

Board Policy 1230 Copy provided in “Guidelines” Authorizes Board to set policy & controls relating to relationship between schools & organizations Recognizes your organization as a separate legal entity Section 1.6 outlines requirements for continuing relationship 38

Administrative Regulation 1230 School site employees cannot serve on board of Booster Clubs or Parent Groups (non-PTA only) School site employees cannot be a signer on the bank account for the parent group or booster club Office of President or Vice President must be held by parent/guardian of current student 39

Administrative Regulation 1230 PTAs – have automatic approval Must still submit approval packet & comply with all requirements Some exceptions for one-time groups or groups raising less than $1,000 40

Forms ( Available at back of Guidelines ) Booster Club Manual Acknowledgement All Officers are required to sign Hold Harmless Agreement Signed by President Application for Booster Club Application packet to be submitted to school site Principal 41

Resources District Guidelines Parent Organizations and Booster Clubs FCMAT ASB Manual Internal Revenue Service Franchise Tax Board Board of Equalization Website links available in “Guidelines” document 42

Questions on Guidelines, Policies, Forms & Resources 43

Best Practices Obtain Tax ID # & Tax-exempt status Recommend two people sign checks Fundraising done by adults Keep logo or identifier separate from school and district Maintain excellent relationship with Principal and site Administration 44

Best Practices Donate funds or purchased items in accordance with District policy Work with District Maintenance Department when donating items that need installation or maintaining Follow District Policies & Procedures Maintain yourself as separate entity 45

Best Practices Cannot require students to fundraise Cannot charge fees to students Cannot co-mingle funds with ASB Cannot represent your organization as School District or School site 46

Summary Purpose of a Booster Club & Parent Organizations How to Become an Approved Parent Group or Booster Club Financial Procedures & Fundraising Introduce & Review “Guidelines for Parent Groups & Booster Clubs” Forms & Reference Materials Best Practices 47

Thank you for your time & attendance 48