1. ASSOCIATED STUDENT BODY ASB ESSENTIALS September 24 and 26, 2019

2. TOPICS PURPOSE/LAWS ORGANIZED VS. UNORGANIZED
CASH COLLECTIONS, RECEIPTS
DISTRICT BANKING AND DEPOSITS
DONATIONS
FUNDRAISING
SCHOOL CONNECTED ORGANIZATIONS
DISBURSEMENTS
SALES TAXES AND USE TAX
BANK RECONCILIATION
JOURNAL ENTRIES
CHART OF ACCOUNTS
ACCOUNT 3000 – SURPLUS FUNDS
ASB RESOURCES

3. PURPOSE OF ASB
The purpose of ASB is to provide students an avenue to raise funds to support activities that fall outside of the instructional program or what the school district already provides
Administration must ensure that ASB funds raised by students be expended for the benefit of the students currently in the school since they contributed to the accumulation of funds
Since only a limited number of laws and regulations identify parameters for ASB operations, a significant amount of local flexibility is needed. The District’s Board had been given the authority to establish policies and procedures. The Board delegates their authority to the school’s principal who is responsible for the conduct of student financial activities. Ed. Codes , 35564, and District BP 3452

4. ORGANIZED ASB VS. UNORGANIZED ASB ORGANIZED Secondary Schools
Elementary Schools, K-8, Adult Ed., Continuation ROPs
Students make the decisions for the raising and spending of funds. The principal and other delegated staff have oversight responsibilities.
Principal makes the decisions for the raising and spending of funds
Preapproval must be obtained each time before any of ASB funds may be expended. Approvals include the principal, student representative, and ASB advisor. (Education Code 48933). The finance clerk’s signature confirms that funds are available.
Preapproval must be obtained each time before any of ASB funds may be expended, approval includes the principal. The ESA’s signature confirms that funds are available.

5. ORGANIZED ASB VS. UNORGANIZED ASB ORGANIZED Secondary Schools
Elementary Schools, K-8, Adult Ed., Continuation ROPs
Preapproval - Student Body Requisition Form
Preapproval - Elementary Preapproval Form
Has a organized student council with elected officers. Develops a charter/constitution, annual budget, holds formal meetings, and keeps minutes.
No organized student council, may have an informal student council. Charter/constitution, annual budget, meetings, minutes not required, but recommended to teach students
Numerous clubs formed - clubs follow regulations in the ASB constitution. Club advisors completes Club Advisor Checklist. (District AP 6240).
May have few clubs

6. CASH COLLECTIONS/RECEIPTS
Refer to handout for Cash Controls Pre Questionnaire
Common audit findings
Not issuing pre-numbered cash receipts
No supplemental receipts
No Dual Count
What forms to use
Point of sale system or pre-numbered cash receipts (Stock #3011/#3016)
Supplemental receipts - Examples: pre-numbered tickets, cash register tape, receipt books (Stock #2644), and tally sheets
Cash count form w/ dual count

7. DISTRICT BANKING AND DEPOSITS
Banking support managed by Fiscal Control (Supplies, changes to bank signature cards, stop payments)
Contacts – See ASB webpage under District Homepage
Alternative/backup signors – Controller and Fiscal Control Manager
Handouts - Deposit and Coin Deposit Preparation Guides
When preparing deposits reference receipt #’s, one deposit can be made up of multiple receipts
Common Audit Finding
Deposits not timely

8. DONATIONS
Forms – Designation Donation Forms - ASB vs. District (Resource 96000)
Donator’s intent determines where donation is deposited (ASB, club, 96000)
School connected organizations may raise funds and donate to ASB or the District or purchases items for donation.
Thank you letter should be written to the donor
Handouts - Key points on donations and fundraising

9. FUNDRAISING LAWS– K-12
Education Code § Grants the governing board the authority to authorize the sale of food by student organizations
Education Code § Grants the governing board the authority to authorize student organizations to conduct activities, including fundraising during and after school hours
Education Code § Prohibits teachers or others from soliciting students during the school day or one hour before or after school unless the solicitation has been approved by the governing board and is for a charitable organization or an organization under the control of the district. Teachers and other employees are not an authorized organization and any fundraising would be taxable to that teacher reportable to IRS and Franchise Tax Board.
Education Code § Prohibits individuals from making solicitations on behalf of the school district or an ASB organization without the approval of the governing board
Penal Code section 320.5, Raffles and games of chance not allowed, (if certified by State, PTA, Foundations can conduct raffles)

10. FUNDRAISING ACTIVITIES
ASB Club, all clubs and School Connected Organizations must request and receive approval to raise funds
Forms – Found on ASB Webpage under district homepage, Fundraising Request and Revenue Potential Analysis Forms
Student participation is voluntary for clubs and School Connected Organizations
Students cannot be required to participate and be excluded from an activity funded by ASB funds because he/she did not participate in raising funds
Funds are raised to benefit an entire club, not individuals students
Fundraising proceeds cannot attributed to specific students on what they raised
Non district organizations seeking authorization to solicit as a charitable organization: Once fundraiser has been approved by ASB and Administration, send request to the SDUSD Controller with IRS letter of 501 C 3 status, name of organization and name of student group coordinating the fundraiser
Common Audit Finding
No Fundraiser Form Approved

11. SCHOOL CONNECTED (NON DISTRICT) ORGANIZATIONS
Foundations, Booster clubs, PTA, PTO, or auxiliary organizations who raise and contribute funds to a club, sports team, district
Separate entity of the district, have their own Fed Tax ID, tax exempt status 501 C (3). However, many non district organizations have not applied for or received nonprofit status and do not have their own tax identification number, so it should not be assumed that they are all official groups in the eyes of the Internal Revenue Service (IRS). They may not use the district’s tax-exempt status or open bank accounts using the district’s tax identification number.
Principal/sites responsibilities – Administrative Regulation 1230, Fundraiser must be approved by principal
Funds and accounts separate from ASB accounts, responsible for their own bookkeeping. Funds must never be commingled

12. SCHOOL CONNECTED (NON DISTRICT) ORGANIZATIONS
Not included in the school entity’s annual audit
District has right to review their financial records, but not responsible for oversight of their entity
Should have their own website, address (P.O. Box), and letter head. Can maintain lockbox at school
Students participation in fundraising activities is voluntary for School Connected Organizations
District employees cannot work for school connected organizations during their District work hours, must have prior approval from Human Resources to work for a school connected organization (District AR 1230)
It is best if school staff members do not act as officers of nonstudent or non-district-sponsored clubs to avoid the appearance of district sponsorship

13. ASB DISBURSEMENTS – GENERAL GUIDANCE
Student body funds may not be used to purchase instructional supplies and equipment for instructional use
In elementary schools ASB funds may be used to finance activities for non instructional periods or to enrich the district’s programs for K-6 students. Education Code 48934
All checks must be pre-approved, Student Body Requisition for Secondary, Preapproval form for Elementary
For organized ASBs. – requires preapproval of three people: the principal, the ASB advisor (must be a certificated employee), and a student representative of the ASB organization. Education Code 48933
ASB General Funds shall be expended only for purposes that benefit the entire student body
ASB funds shall be expended for the benefit of students currently in the school

14. DISBURSEMENT CONTROLS
Refer to handout for Disbursement Controls Pre Questionnaire
Cash Collected by students/advisors should NEVER be used for payments of any kind
Two signatures required on all checks (Principal & Finance Clerk/ESA), no signature stamps
All checks to a named payee (never to “Cash”)
Checks are NEVER to be signed in advance
Keep voided checks and cut out the signature
Checks should be computer generated by QuickBooks (never hand written)
Is supply of unused checks adequately safeguarded?
Purchases of $1,500 or more of a specific type of item and services in one school year – obtain 3 quotes
Contracts: See handout from Strategic, Sourcing and Contracts (SS&C) – all contracts must be executed by SS&C
SS&C website:

15. DISBURSEMENT CONTROLS
Back-Up Documentation for Purchases and Shipment of Items/Orders
Attach check stub with original itemized invoice, not a statement
Include student body requisition (Secondary) or preapproval form (Elementary) as backup
For received items, ensure packing slip is signed by receiver and saved with backup documentation
Items are addressed to the school to the attention of applicable Club or Advisor
Items are never to be shipped to a home address

16. ASB DISBURSEMENTS
Questions to ask when deciding whether or not an expense would be allowable:
If this situation were to be published on the front page of the local newspaper, would the same action be recommended?
Will the expenditure be used to promote the general welfare, morale and educational experience of the students?
Have the student agreed to the expenditure before it occurs?
Is this expenditure a responsibility of the district?
Has the ASB or the district paid for this in the past?
Is the ASB being asked to pay for this because the district is making a budget cut?
Is this something the district should provide, or is it really an extra that the students want?
Who will use the item?
Will the expenditure benefit a group of students or the entire student body?
Source: FCMAT

17. SALES & USE TAX FOR ASB Sales Tax – on items you sell
Food sales - Yes or No (exceptions carbonated beverages, food sold where admission is charged, i.e. athletic event, concession sales.) Do not apply sales tax at point of sale
Student store merchandise sales - Yes or No
Yearbooks distributed to students - Yes or No (taxes apply to invoice for printing costs)
Tangible goods purchased for fundraising Yes or No – (if invoice includes tax, pay sales tax only on profit, e.g. purchased shirt for $10, sold for $15, apply sales tax on $5)
Use Tax – on items you purchase
If the goods from a purchase are not resold, ensure that the invoice includes sales tax. If no sales tax is included, use tax is required to be paid separately
Use tax is based on the same city/county sales tax rate where the items were received or consumed
Use tax generally applies to out of state purchases and Amazon invoices
Quarterly Reports - Financial Accountant, sales and use tax reports will be ed to you quarterly. Remit taxes quarterly to Tiffany Lilley, (619)

18. ASB MONTHLY BANK RECONCILIATION
Objective: Reconcile the Book Balance to the Bank Balance
Timeliness – Reconciliations must be completed by the 10th of each month
Bank Reconciliation must be approved by principal and include financial statements, journal entries, receipts and disbursement supporting documentation (use monthly checklist)
Correct Check Number’s – Confirm check # on QuickBooks to actual printed check # (i.e. Check # 1004 is not 04).
Common Audit Findings
Bank Reconciliation not timely
Bank Reconciliation not approved
Missing financial statements
Outstanding checks

19. ASB MONTHLY BANK RECONCILIATION
Outstanding Checks (Over 6 months old)
Canceling Outdated Checks
Stop Payment (contact Jeff Anschutz in Fiscal Control before proceeding)
Voided Checks
Save all voided checks (cut out signature) and file them with your monthly reconciliation
Uncleared Deposits - Review reconciliation for any deposits in transit that did not show up on bank statement
In QuickBooks, when you complete your reconciliation, you must see a $0 difference before you select done. If you have a difference and cannot resolve the difference, reach out to the ASB Financial Accountant.

20. JOURNAL ENTRIES When to use a journal entry:
To record a returned (NSF) check
To write off a stale dated check
Annual inventory adjustment
To clear inactive account balances
Transferring funds between accounts
Income and Expense Summary Closing (profit & loss transfer Account 3900)
Print Journal Entry (Select More at the bottom, choose Transaction Journal). Journal entry must be reviewed and signed by principal. Include detail reason for making journal entry and include supporting documentation.

21. CHART OF ACCOUNTS
Standard Chart of Accounts that conforms to Generally Accepted Accounting Principles
Listed in numerical order by account groups
Assets ’s Accounts, anything that has value - bank accounts, savings, change fund, accounts receivable, inventory
Liabilities – 2000’s Accounts, debts or obligations that ASB owes to others - Sales Tax Payable, Accounts Payable. Also includes Trust Accounts: (e.g. Clubs, scholarships, class accounts), and other Board approved accounts (e.g. lost library book fees, PSAT fees, athletic clearing accounts.) Reminder to remove any faculty/social committee accounts, a recommendation made by our external auditors which our Board accepted.

22. CHART OF ACCOUNTS
Equity Account – 3000’s Accounts, ASB’s net worth - ASB general fund balance, account 3000, Income/Expense Summary (aka retained earnings)
Revenue/income ’s accounts – money earned by ASB - yearbooks sales, ASB cards, dance income, student store sales
Expenditures ’s accounts – money spent by ASB - yearbooks costs, dance costs, student store costs, supplies

23. ASB SURPLUS FUNDS ACCOUNT 3000
Surplus funds need to be spent down
Only once a year, amounts are posted to Account 3000 for Secondary
Elementary schools may post other transactions to Account 3000 that impact all students
Recommend 3000 ASB General Fund account be between 10% and 20% of the annual budgeted revenue (income) to cover unexpected expenses and losses.
ASB General Fund balances that exceeds 20% are discouraged because funds raised are to be expended for the benefit of those students currently enrolled and who have contributed to the accumulation of such funds.
If expenses exceed the revenues as planned in the revised ASB budget, the 3000 ASB General Fund account balance will decrease at year-end due to the net loss.

24. ASB RESOURCES ASB website found on District Home Page, A to Z Index
District ASB websites
ASB website found on District Home Page, A to Z Index
Secondary ASB Handbook
FCMAT ASB Accounting Manual Interactive and FAQs
New
For ASB questions,

25. HANDOUTS Cash Vault Services – Deposit Preparation Guides
Club Sports Information Circular No. 504
Examples of Allowable and Prohibited Purchases
Guidelines Donations and Fundraising
Permissible School Fees, Fundraising and Donations
Pre Questionnaire Cash Receipts and Disbursements
Sales and Use Tax Guide
Strategic, Sourcing and Contracts Guide

26. QUESTIONS
For future trainings, we welcome your input for topics that were not covered or any other comments for improvement.

27. THANK YOU FOR ATTENDING
PRESENTERS:
Accounts Payable Department– Sherrie Shumaker, Manager (1099 Reporting)
Fiscal Control Department, Operations Auditor - Susan Jarrold (ASB Guidelines)
Food and Nutrition Services – Melanie Moyer (Competitive Food Sales)