Fundraiser Management, Deposits, Controls, and What about Sales Tax?

Student Fundraising Policy District-Sponsored Fundraising - Any activity that has the purpose of raising funds in support of a student activity or program and that is administered and conducted by school staff or students involved in the activity or program.

Student Fundraising Policy cont…  The Board prefers that the school district financially support district-sponsored student programs and activities.  However, in some cases it may be necessary to raise funds to help support these district endeavors, and the district may involve students in these fundraising activities.  The superintendent and/or administrators will be directly responsible for all district- sponsored fundraising activities conducted in the district or sponsored in any manner by the district.  School organizations MAY BE LIMITED to a maximum of number of fundraisers.  All district-sponsored fundraising activities must first be approved by the building administrator and/or the superintendent or designee and must comply with the requirements set out in district policies and procedures, including the district's wellness program and district funds management rules.

side note - District's Wellness Program…. Did you know…..  New obligations under the new free and reduced lunch regulations.  Limitations for selling fundraising food to students during the school day.  Food sold to students must meet nutrition standards unless DESE exception New Obligations !!!  Each school can sell food that does not meet nutritional standards during the school day for a total of five days a year.  Band sells candy bars during the school day…allowable for five days only!!  This is the only non-nutritional food sales that can occur in that building during the school day in that year!! Exception!!!

back to - Student Fundraising Policy cont… Student-Initiated Group Fundraisers Student-initiated groups are not district sponsored, but these groups have the same access to district facilities, communications channels and fundraising opportunities as other district-sponsored non- curricular groups. These groups may conduct fundraising activities, but must follow the same rules applicable to other district-sponsored non-curricular groups. Fundraising by Other Groups  For liability and funds management purposes, it is essential that district staff not confuse district- sponsored fundraising with fundraising conducted by booster clubs or other groups not directly controlled by the district.  cannot take responsibility for fundraising or the funds collected by such groups.  To avoid confusing parents, students and community members participating in the fundraising efforts, only district-sponsored fundraising subject to district rules should occur during the school day or class time.  A group may only use the name, logo or mascot of the district or of a district school in reference to a fundraiser if the fundraiser has been approved by the superintendent or designee or the School Board and the funds raised go to the district as represented in the advertising.

Fundraising Approval Procedure Approval Form MUST be completed prior to scheduling a fundraiser or ordering merchandise for a fundraiser. FUNDRAISING APPROVAL FORM This form must be completed and returned to building administrator for approval at least one (3) weeks prior to scheduling and/or ordering merchandise for a fundraiser. ______________________ __ ________________ Name of Club/Organization Name of Sponsor _____________ Date of Request ______________________ ___________________ GL Expense Code Type of Fund Raising Purpose:_______________________________________________________ ______________________________________________________________ _________________________________________ _________________ Vendor / Salesperson Phone# Estimated Total Revenue: $_____________ Estimated Total Payment to Vendor $_____________ Est. of Other Costs Incurred and Explanation: ____________________________________________________________ ____________________________________________________________ _______________________ ____________________ Requested Delivery Date Actual Date of Delivery _______________________ _____________________ Person Accepting Delivery _______________________ Week of Sale Week Money to be Collected _______________________ ________________________ Sponsor Signature Building Admin. Signature This fundraiser has been approved / disapproved (circle one) on the following date _______

Requirements for Fund Raiser Approval A worksheet is available (if needed) to calculate the Estimated Revenue and Expenditures. The worksheet does NOT need to be attached to this form. 1.Complete “Fundraiser Approval Form 2. Administrator must approve the contract/agreement between the fundraising company and the sponsor and a copy a. Scanned to Accounts Payable as support for requisition/purchase order. b. Filed with building administrator. 3.Fundraiser placed on building calendar. 4.A copy of fundraising guidelines to be given to the students. 5.Checks must be made out in building name or MVR-III School District; no other checks will be accepted. 6.Students are not to coordinate fundraising monies. This is the sponsor’s responsibility. 7.Deposits turned in daily and initialed by secretary. Fund raiser # MUST be recorded on deposit form. 8.All accounts monies/merchandise must be collected and turned in within one (1) week of end of sale.

Fundraiser Worksheet Worksheet is available (if needed) to calculate the Estimated Revenue and Expenditures. The worksheet does NOT need to be attached to fundraising form.

Deposit Controls This procedure applies to all district employees who collect money regardless of whether that activity takes place on or off campus. Method of Payment 1. Checks are the preferred method of payment for all school activities. Other acceptable methods of payment include cash and money orders. All checks and money orders should be made out to the building name or to Meramec Valley R-III School District. 2. Cleared checks will provide proof of payment for any non-cash payments. 3. For payments made in cash, the payer may request a written receipt from the teacher, sponsor or other school personnel. Personnel will provide a receipt upon request.

Deposit Controls cont…. Proof of Receipt 1. All monies (cash, checks and money orders) collected by personnel other than the building secretary must be turned into the building secretary daily, accompanied by daily tabulation of receipts form. 2. Submit all money to the secretary in the same form as collected. 3. Never cash or substitute personal checks with cash collections. 4. Do not hold or accept pre- or post-dated checks. 5. Do not deposit money in personal checking accounts or bank deposit boxes. 6. Do not spend any of the collections. All payments must be made utilizing the Board approved purchase process.

Deposit Controls cont… Deposits  All checks will be endorsed by the building secretary “For Deposit Only.”  Individual deposits consisting of $300 in cash or coin (does not include total of checks) WILL NOT be sent via transportation or inter-office district mail but will be delivered to the depository institution by the building principal or designee.  Receipts will be taken intact directly to the depository institution for deposit in the applicable checking account.  Deposits shall be made the same day as received, if possible and recorded in the accounting system. Use the daily tabulation of receipts form.  A listing from the accounting system shall be compared to the bank statement entries, thus assuring that all monies are deposited.

Deposit Controls cont… Deposits - D aily tabulation of receipts form.

A specific fundraising example we all can relate to?

MVR-III Book Fair’s Accounting & Reporting Procedures Prior to Book Fair When the book fair is approved, but not less than 3 weeks prior to the fundraiser start date, building/program will submit a purchase requisition for estimated amount of payment to the book fair vendor, including in comments “do not send to vendor”. Also send a copy of any contract or agreement along with the supporting “Fundraising Approval Form” form to accounts payable. Request Starter Change  Check book fair tool kit for suggested number of registers and the amount recommended per register, not to exceed $75 per register.  If change is needed, contact business office bookkeeper for requisition requirements/GL code.  Submit a requisition not less than three weeks prior to the book fair start date, indicating sales start date and denominations needed.  At the close of the fair, additional starter change must be re-deposited into the same GL code used to submit the requisition.

Book Fair Accounting & Reporting Procedures During Book Fair  Clear registers before fair begins.  Establish a cash drawer for each register. Count to verify starter amount of starter change received prior to opening fair each day/session.  Lock cash drawer per device procedures. Do not leave cash drawer open unattended. Room should be locked should book fair manager/volunteers need to leave the room for a brief period. Sales  Follow company procedures for processing voids. Maintain a manual list of all voids.  Maintain a list of all register restarts, noting date and time.  Accept payment for amount of sale only, ie do not accept payment for more than purchase and do not cash checks. Money orders and cashier checks are processed as checks.

Book Fair Accounting & Reporting Procedures Daily Close of Book Fair  Run the following book fair reports from each register: Daily financial summary & sales detailed report  Count and set aside amount of daily starter change in denominations needed for the next day/session. Count all funds in the drawer…checks, currency and coin…and complete form DI- AF1, attaching a copy of each register’s financial summary. Totals for each type of collection along with total submitted are acceptable on form DI-AF1.  Balance cash drawer at close of each day/session. Best practice is to have two persons count and verify the sales deposit and the starter change.  Turn in all sales money collected to office daily for deposit, as directed by building/program administrator, along with completed form DI-AF1 and attached daily sales report.  Turn in starter change for safekeeping until the following day/session.  Record daily sales on the sales report each day.

Book Fair Accounting & Reporting Procedures Close of Fair  Re-deposit starter change as applicable, using the GL code from the requisition request.  Total daily sales report.  Run total fair financial summary report from each register. Attach to daily sales report.  Submit daily sales report and financial report to the building administrator.

What about Sales Tax? Exempt: “All sales made by or to religious and charitable organizations and institutions in their religious, charitable, or educational functions and activities and all sales made by or to all elementary and secondary schools operated at public expense in their educational functions and activities;...” § (20), RSMo. Public Schools are Exempt from State and Local Sales and Use Tax

Sales Tax Example (G) A parent teacher organization (PTO) agrees with a candy company to sell candy as a fundraiser for a public elementary school. The PTO buys the candy from the company and has the right to return any unsold candy over the minimum agreed amount. The sale is not subject to tax because the PTO is the seller of the candy and its sales are exempt from tax as sales by a public elementary school. 12 CSR

Sales Tax Example (H) A parent teacher organization agrees with a wrapping paper company to sell wrapping paper as a fundraiser for a public elementary school. The PTO takes orders for the wrapping paper and forwards the orders to the company. The PTO never takes title to the wrapping paper—it merely takes the orders and delivers the paper. The company must collect and remit tax because the company is the seller of the wrapping paper. 12 CSR

Do You Collect Sales Tax at the Book Fair?  Unless the district buys the books and resells them – yes!  Problem: Have you been?  Scholastic Agreement: “Collect sales tax as required by your state law as purchases of books and educational material from SBF are for resale.”  Concern: District is on the hook for the sales tax

Bottom line??? review, review, review, REVISION!!!  Review current Board policies for guidance and support.  Review current procedures.  Review for changes, internal and external.  Revision is imminent!  Education is constantly changing!  Use your resources.  Use your peers!

THE END Slides and all supporting policy, procedure and forms will be posted on Susan Goldammer Senior Director, Employment and Labor Relations Missouri School Boards' Association 2100 I-70 Dr SW, Columbia, MO p: , ext. 355 | c: Diane Winters Financial Analyst Meramec Valley R-III School District 126 N Payne Street, Pacific, MO (636) ext