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

2. 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

3. 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

4. Application for Board Approval
Completed Application signed by school principal
Constitution and Bylaws
Names, addresses, s, 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***

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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)

12. 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

13. 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

14. 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

15. 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

16. 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)
General Liability Coverage $1 million – Approximate cost:$175

17. 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

18. Tax Identification Number
Form SS-4 “Application for Employer Identification Number”
Instructions:
Fill-in form:
IRS Home Page
IRS Customer Service

19. Non-Profit Status
Publication 557 “Tax-Exempt Status for Your Organization”
Package 1023 “Application for Recognition of Exemption under section 501 (c)(3) of the Internal Revenue Code”
Form 8718 “User Fee For Exempt Organization”
Determination Letter Request:

20. 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

21. 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

22. 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)

23. 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

24. Other Available Resources
School-Connected Information Packet
ASB Accounting Manual & Desk Reference
HUSD District Board Policies
GAMUT Online.net
User Name: hemet
Password: public

25. Questions & Feedback