School-Connected Organization Summary Prepared by: Hemet Unified School District Fiscal Services 2/22/2019

Purpose and Relationships Provide Support to Students & District Ability to Raise Funds to Donate to School Ability to Purchase Items and Donate to School Separate from the ASB and District Cannot Deposit into ASB Accounts Usually Chartered by the District Not Controlled by the District

Board Policy – AR 1230 and BP 1230 The Board appreciates the contributions made by Booster Clubs and encourages their interest The Board recognizes that Booster Clubs are separate, legal entities, independent of the district Prior to establishing a club – a request for authorization should be presented to the district The district should be granted the right to audit the group’s financial records Provide evidence of liability insurance as required by law Provide taxpayer ID # Compliance with Board policies, administrative guidelines & IRS

Application for Board Approval Completed Application signed by school principal Constitution and Bylaws Names, addresses, e-mails, and phone numbers of all officers Meeting Dates Calendared A brief description of the organization’s purpose, including specific annual objectives List of fundraising activities for the year Planned use for any money remaining at the end of the year if the organization is not continued or authorized in the future Name of the bank and names of those authorized to withdraw funds Evidence of liability insurance Tax Identification number Evidence of tax-exempt status – IRS Section 501 (c)(3) ***Authorization will be granted for a period of one year***

Fundraising Activities California Education Code 51521 Requires all organizations that conduct fundraising activities to benefits students, ASB clubs, schools, or the District as a whole, must have prior approval from the HUSD Governing Board, or Board assigned designee. Approval may be granted based on completion of the “Fundraising Request Form” and approval by the school principal and the business department DO NOT represent booster activities as those of HUSD or one of its schools. Create a logo and name to be used. High school or district logo should not be used without specific authorization of the designee

ASB or Booster Club Event? All activities and fundraising events that involve the primary participation of students should be conducted through the ASB Booster organizations should serve as auxiliaries to the school program and should conduct activities and fundraising events involving the primary participation of parents and other adult community members

Unacceptable Fundraisers Safety and Liability Mechanical or animal rides Raffles or games of chance (unless recognized as a non-profit organization with a valid 501 (c)(3)) Games with live targets/water tanks Objects thrown at people Anything involving darts/arrows Trampolines Jumpers Rentals of district owned equipment or facilities Anything not allowed by board policy

Handling of Cash Two people count the cash Use 3-part receipt books/pre-numbered tickets Use a cash register Cash log sheets Don’t leave money lying around – deposit ASAP (within 3 days), keep locked in safe/secure place Documentation must be available for auditors Good procedures and internal controls discourage theft and dishonesty

Control Procedures Types of Events Documentation Pre-numbered Tickets Dances Entertainment events Car washes Athletic events Festivals All cash and checks collected All remaining tickets Report of ticket sales ASB cash count form Cash Register Student store Concession stands Cash register tape Pre-numbered Receipt Books Publication sales Sale of advertising space All receipt books issued Tally Sheets Candy sales Bake sales Tally sheets used Inventory Control Vending machines Student stores

Recommended Practices Never make a purchase from cash collected Always turn in ALL cash collected and get reimbursed for purchases Cash should be deposited in the bank at least twice a week during large money generating events Cash should never be left over the weekend Cash and checks should always be stored in a locked safe

Book Fair or Similar Activity Revenues Cash register Pre-numbered, 3-part receipts 1 copy submitted with cash (original) 1 copy given to person making purchase 1 copy stays in the book permanently If there is a mistake – void receipt (1 copy turned in with cash, 2 copies stay in book)

School-Connected Food Sales Food sales on school premises must comply with state law as well as district policies and regulations No food sales during the day Food sales can only occur 30 minutes before school begins and/or 30 minutes after the school day ends – must be pre-approved through ASB and school Principal BP/AR 3554 – Other Food Sales BP/AP 5030 – Student Wellness Additional Information is available from Child Nutrition Services

Administration and Expenditure of Funds Treasurer’s books and accounts shall be open for review by the district at any time Financial reports including bank reconciliations and profit/loss statements MUST be kept current (prepared monthly) and distributed to key stakeholders Must benefit the group as a whole instead of benefiting individual members of group

Purchases for Schools All purchases shall be donated to the school Donation Form Cash donations are recommended so that items can be acquired according to statutory laws by the purchasing department Upon approval from business, the maintenance department must be consulted prior to the purchase of any items requiring installation Capital improvements, equipment over $5,000 must be processed through the district purchasing department

Support Personnel Booster Clubs that wish to pay staff for additional hours and/or extra-curricular services, must hire staff through the personnel department Work with the HUSD HR department regarding district policy/procedures for hiring staff HUSD Fiscal Services will bill the club for the employee’s salary and benefits Booster Club reimburses the District within 30 days

Liability Insurance The District requires Booster Clubs to provide proof of liability insurance in the minimum amount of $1,000,000 combined single limit with the district name as an additional insured Use of school facilities may require a higher level of coverage based on the type of activity or for large events AIM (Association Insurance Management) www.aim-companies.com General Liability Coverage $1 million – Approximate cost:$175

Use of District Facilities Use of Facility form should be submitted generally one month before the intended activity Forms can be found in the School Office After site approval – submitted to the Business Office Certificate of Insurance: Covering liability and property damage endorsing the district as additional insured

Tax Identification Number Form SS-4 “Application for Employer Identification Number” Instructions: http://www.irs.gov/pub/irs-pdf/iss4.pdf Fill-in form: http://www.irs.gov/pub/irs-pdf/fss4.pdf IRS Home Page www.irs.gov IRS Customer Service 1-800-829-1040

Non-Profit Status Publication 557 “Tax-Exempt Status for Your Organization” http://www.irs.gov/pub/irs-pdf/p557.pdf Package 1023 “Application for Recognition of Exemption under section 501 (c)(3) of the Internal Revenue Code” http://www.irs.gov/pub/irs-pdf/f1023.pdf Form 8718 “User Fee For Exempt Organization” Determination Letter Request: http://www.irs.gov/pub/irs-pdf/f8718.pdf

Retention of Records The following documents are examples of documents that should be retained by the organization: Cash receipts Cash disbursements and general ledger Bank records Income tax returns Minutes of meetings as defined by the organization by-laws

Internal Controls – What are they? Simply defined: Policies and procedures that an organization adopts to protects itself and its members against fraud, theft, and inappropriate use of funds

Why Have Internal Controls? Keeps your name out of the paper Reduces the risk of fraud and abuse Provides evidence that cash was handled properly Without evidence – may not be able to prove that fraud did not occur Remain in good standing with HUSD - a deciding factor of the Board allowing continuation of the organization Maintains good financial records Prepares for possible audit(s)

Best Practices Get prior approval for fundraising activities from ASB, Principal, and District Office If you don’t know – ask Protect yourself & the reason why you’ve decided to volunteer for this position (the kids) & follow the rules, even if you don’t like them Don’t do anything that doesn’t feel right

Other Available Resources School-Connected Information Packet http://www.hemetusd.k12.ca.us/business/finsvcs/fiscal/index.html ASB Accounting Manual & Desk Reference http://www.fcmat.org/stories/storyReader$911 HUSD District Board Policies http://www.hemetusd.k12.ca.us/board/brdplcy/index.html GAMUT Online.net User Name: hemet Password: public

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