2. “Top 10 ASB Things You Should Know” Key Guidelines for Sound Business Practices That Will Help You Avoid Problems Associated Student Body (ASB) Office of Internal Audit – W. Stephen Carr, Director

3. Associated Student Body (ASB) 1. The importance of knowing what ASB is. Definition: Definition: Student body funds: consist of monies collected, contributed, and earned by students through activities such as contests, plays, and sales, including monies given to a particular school for use of students.

4. 1. The importance of knowing what ASB is. (Cont.)  Key employees involved in ASB organization: 1) Principal 2) ASB Advisor 3) Financial Clerk and Secretary 4) Student Council 5) Operations Auditor

5. 2. The Importance of knowing what can and cannot be spent using ASB Funds. Procedure 2225 – Administration of Student Body Funds  Principles Governing Student Body Funds –Basic Assumption –General Principles

6. 2.The Importance of knowing what can and cannot be spent using ASB Funds. (Cont.) –Limitations on the use of ASB Funds  Expending funds  Management  Competition with outside business  Participation by principals  Expenditures for faculty  Capital improvements and equipment  Instructional supplies and equipment  Items sold by employees  Medicines – Procedure 6371  Ticket sales – Procedure 2260  Debt  Investments – Procedure 2255  Class wills  Trust account balances

7. 3. The Importance of having an ASB Budget Definition: ASB budget: A financial plan showing anticipated income and expenditures for activities underwritten by ASB for the benefit of the total student body. ASB budget: A financial plan showing anticipated income and expenditures for activities underwritten by ASB for the benefit of the total student body.

8. 3. The Importance of having an ASB Budget. (Cont.) Procedure 2227 – Student Body Budget  Budget Philosophy  Overspending  Flexibility  Prepared by May 1 st of the preceding school year  Finalized by Oct. 1 st of the current year  Budget Implementation  Student-Faculty Finance Committee  Organizations and activities requesting ASB Funds  Student Council  Sample Budgets

9. 4. The importance of understanding Trust Accounts. Trust fund account: 1) Club budget is an account for activities benefitting members of a specific organization or club. 2) Special purpose budget is a fund restricted by the donor for a particular purpose.

10. 5. The importance of understanding the Principal’s Discretionary Fund. Principal’s Discretionary is a fund from outside donations that specifies that the money is to be used for the principal’s discretion. This fund can only be used for the benefit of the school and the students. Principal’s Discretionary is a fund from outside donations that specifies that the money is to be used for the principal’s discretion. This fund can only be used for the benefit of the school and the students. It must not be used for personal use or the benefit of the faculty and staff. It must not be used for personal use or the benefit of the faculty and staff.

11. 6. The importance of Internal Controls. ASB Guidelines for Internal Controls GENERAL  ASB should have a properly approved constitution and bylaws.  Student classes and clubs are properly approved and copies of their charter, constitution or statement of purpose and objectives are on file in the school finance office.  ASB Minutes are kept for all meetings of the ASB officers and signed by the ASB secretary.  ASB Minutes are current and kept on file in the school finance office.

12. 6. The importance of Internal Controls. ASB Guidelines for Internal Controls (Cont.) INVENTORIES  Goods are adequately safeguarded against loss by theft.  Goods are adequately protected against physical deterioration.  Physical inventories are taken at least annually.

13. 6. The importance of Internal Controls. ASB Guidelines for Internal Controls (Cont.) PURCHASING  Competitive bids for purchases of $1,500 must be obtained. (Procedure 2435)  Restrictions on contracts or commitment of funds must not extend beyond the current fiscal year.  Prior to any purchase, a Student Body Requisition shall be completed and approved by the principal, the advisor or sponsor and a student officer. The financial clerk’s signature assures availability of funds  Governing board of the student body shall approve all purchases and expenditures not previously approved in the budget.*  Gift Card purchases are not permitted under any circumstance. External entities may contribute gift cards. *Note: Applicable to secondary schools only

14. 6. The importance of Internal Controls. FINANCIAL REPORTS AND DOCUMENTATION FOR AUDIT PURPOSES:  Monthly financial statements must be submitted to the principal on or before the 20 th day of the following month for review:  Balance Sheet*  Income Statement*  Trial Balance-signed by principal to indicate review  Bank Statement Original  Bank Reconciliation  Journal Voucher if any  ASB Receipts for the Month-not submitted to the principal but maintained in the school finance office for audit *Note: Applicable to secondary schools only*Note: Applicable to secondary schools only

15. 7. The importance of having proper authorization and documentation to support expenditures  Prior approval by an ASB officer, ASB advisor, and principal are required – Ed. Code 48933. (Use of faculty funds does not require approval from the ASB.)  Original invoice  Check Signing - must have 2 signatures

16. 8. The importance of having good Cash Handling Controls.  Issuing Sub-receipts, Master receipts (EGRY), for high schools “Blue Bear” receipts  Daily Deposits  All collections (cash and checks) must be deposited intact in authorized bank  Collections must be counted and verified by two people  Cash collected should not be used for payment of any kind. Payments of all bills shall be by pre- numbered ASB check

17. 8. The importance of having good Cash Handling Controls. (Cont.)  School should not maintain Petty Cash Fund  Safe place for money  Maintain ASB advisor, club advisor and coaches checklist forms  Cash or checks collected from fund-raisers, or any other school related activity MUST NOT be deposited into personal checking accounts. All funds must be promptly deposited to the financial office.  All requests for reimbursement of expenses must be accompanied by an original receipt.  Whenever money changes hands from one person to another, a receipt should be exchanged.

18. 8. The importance of having good Cash Handling Controls. (Cont.) CLUB CASH HANDLING PROCEDURE  Request a sub-receipt book from the school finance office.  Write a sub-receipt for money collected from each student.  Give the original (green copy) of the sub-receipt to the student.  Do not tear the duplicate (pink copy) of the sub-receipt from the book.  If voiding a receipt, original must be attached to the duplicate copy.  At the end of the day, prepare a club deposit ticket.  The amount of deposit must equal the total amount of the sub- receipts written for the day.  Take the money, club deposit ticket and sub-receipt book to the school finance office.  Request a master receipt from the financial clerk for the deposit made.

19. 9.The importance of handling Fund Raisers properly. Procedure 2265 – Student Body Fund Raising Activity  Elementary School Fund Raising.  Before any activity to raise funds may be held in an elementary school, written permission must be obtained from the principal.  The request must be submitted at least two weeks in advance to allow time for approval. The following procedures must be observed.  School prepares the "Student Body, Permission to Raise Funds, Elementary" form for the principal's signature and must be on file at the school site for audit purposes.

20. 9. The importance of handling Fund Raisers properly.  Elementary Fundraising Procedures-(Cont.)  School must ensure that no student is denied participation in any school academic or extra- curricular function for not partaking of any fund- raising activity.  Elementary school fund-raising functions normally should be conducted at the school after school hours.  Each elementary school is permitted to have four performances each year (two per semester) for which admission is charged.  Fund-raising activities in the community should be limited and subject to the approval of the principal.  Door-to-door solicitation by students is prohibited.  Lotteries and raffles are not permitted.

21. 9. The importance of handling Fund Raisers properly.  Elementary Fundraising Procedures-(Cont.)  Elementary school food sales:  Procedure 2270 – ASB Food Sales  Must be sold after lunch period.  Limited to four sales per year.  A maximum of one food item, a nutritious dessert- type food not sold in the food service program at that school during that school day, may be sold during a given food sale.  This food sale item shall not be prepared on the premises.  Must meet the Food & Beverage Requirements under CA. Senate Bill 12 and SB 965

22. 9. The importance of handling Fund Raisers properly.  Secondary Fundraising  Student organizations wishing to collect funds for any purpose shall obtain advance approval of the principal or designee and the ASB council.  Revenue Potential Forms  Club Advisor Checklist  Secondary school fundraising functions normally should be conducted at the school and after school hours. Fundraising activities in the community should be limited and subject to approval of the ASB advisor and the principal.

23. 9. The importance of handling Fund Raisers properly.  Secondary Fundraising (Cont.)  Door-to-door solicitation by students is not permitted.  Lotteries and raffles are not permitted.  Finances. All moneys collected by an organization must be deposited with the school's financial clerk and disbursed according to school district regulations

24. 9. The importance of handling Fund Raisers properly.  Secondary Fundraising (Cont.)  Procedure 2270 – ASB Food Sales Conditions  Sales must be approved by the principal and the ASB student council.  Must meet the Food & Beverage Requirements under CA. Senate Bill 12 and SB 965  One organization per day (i.e., student store) may sell no more than three types of approved food or beverage.  On no more than four days during the year, multiple organizations may sell approved foods (all on the same four days).

25. 9. The importance of handling Fund Raisers properly.  Secondary Fundraising (Cont.)  Procedure 2270 – ASB Food Sales Conditions (Cont.)  Food may not be prepared on school premises or in private homes (must be commercially prepared).  Food sold during the school day may not be the same as is sold by the school cafeteria on that day.  Noncompliant food and beverages may be sold only: 1) if the sale takes place off campus or 2) the sale takes place at least ½ hour after the school day or 3) the sale takes place at a school-sponsored event after the school day.

26. 9. The importance of handling Fund Raisers properly.  Non-District Organizations.  Dealing with non district organizations (Foundations, PTA, booster clubs). Procedure 9325  Types of organizations: 1. Organized 2. Unorganized

27. 9. The importance of handling Fund Raisers properly.  Requirements for operating as an Organized non district organizations: 1. Nonpartisan, charitable organization 2. Has a current IRS determination Letter - 501(c)3 on file with the Principal 3. District tax ID number is not for non-district use. 4. Principal obtain the names, addresses, and telephone numbers of all organization officers and a brief description of their job responsibilities. 5. Explain school regulations regarding use of facilities as stated under Procedure 9205.

28. 9. The importance of handling Fund Raisers properly.  Requirements for operating as an Organized Non-District organizations:-(Cont.) 6. Explain and give them copy of procedure 9325 related to fund-raising activities during the school day when school personnel and students are involved. 7. District employees have no authority to work for a nonprofit organization during their district hours. 8. School personnel are not to serve as organization officers. 9. District employees shall not be authorized signers on the organization’s bank accounts

29. 9. The importance of handling Fund Raisers properly.  Requirements for Fundraising by an Organized Non-District Organizations: 1. Request to conduct a fund-raising activity. Organizations and individuals requesting permission to conduct a fund-raising activity must complete and submit a “Request For Approval Of Fund-Raising Activity By A Non-District Organization” form to the principal. 2. Approval of the principal must be received prior to initiation of any fundraising activities at a school by a Non-District organization. 3. The nonprofit organization, foundation, or booster club’s funds and accounts shall be kept completely separate from Associated Student Body accounts.

30. 9. The importance of handling Fund Raisers properly.  Requirements for Fundraising by an Organized Non-District Organizations: (Cont.) 4. The organization shall be responsible for their own bookkeeping and accounting. 5. A nonprofit organization that solicits or raises funds shall provide a copy of the fund-raising activity’s income and expense reports and shall grant the Board of Education the right to audit their financial records at any time either by district audit personnel or by an outside auditor.

31. 9. The importance of handling Fund Raisers properly.  Requirements for fundraising by an Unorganized Non-District Organizations: 1. Request to conduct a fund-raising activity. Organizations and individuals requesting permission to conduct a fund-raising activity must complete and submit a “Request For Approval Of Fund-Raising Activity By A Non-District Organization” form to the principal. 2. Approval of the principal must be received prior to initiation of any fundraising activities at a school by a Non-District organization.

32. 9. The importance of handling Fund Raisers properly.  Requirements for fundraising by an Unorganized Non-District Organizations. (Cont.) 3. Fund raising activity needs to have a specific purpose and the purpose needs to be stated on the “Request For Approval Of Fund-Raising Activity By A Non-District Organization” form. 4. A trust account for a specific purpose should be setup in the ASB. 5. All collections must be turned over to the school for deposit.

33. 10. Resources ASB Financial Manual District Administrative Procedures Associated Student Body Accounting Manual- www.fcmat.org www.fcmat.org Internal Audit Answer questions Help you solve problems Request Audit W. Stephen Carr - scarr@sandi.netscarr@sandi.net Ines Abitria- iabitria@sandi.netiabitria@sandi.net Jaime Buensuceso - jbuensuceso@sandi.netjbuensuceso@sandi.net