Student Activity Funds Procedures

1. Student Activity Funds Procedures 2008-2009 School Year Hereford ISD

2. Why are we here? • TEA requires that we account for activity funds as designated in the Financial Accountability Resource Guide • External auditors audit these funds each year • Current year campus changes • Answer questions

3. Student Activity Funds“Necessity is the Mother of Invention” • To Benefit the Student Group or general student population • Student Participation is important: work towards goals, work ethic • Fundraisers contribute to the educational experience of pupils Fund 865

4. Campus Activity FundsFund 461 • Raised at the campus and managed by the principal (ex. Coke machine money) • Must be expended to promote the general welfare of the school and educational development of students • Supplement budgeted district funds • Should not be spent to benefit any individual or non-student group

5. Responsibility • Principal – Overall administration, approval of fund raising activities in advance, see that sponsors have signed responsibility forms, sets limits for number and kinds of fundraisers allowed • Campus bookkeeper – Maintaining records, bank statements, issuing authorized checks, deposits

6. Responsibility, cont. • Faculty sponsor – Safeguarding & accounting for all student funds entrusted to him/her; follow procedures; maintain detailed financial records; maintain positive balance; **See responsibility form • Accountant/Auditor – Monitoring monthly activity and bank reconciliations; Ensure that our district complies with TEA’s requirements; Protect student funds from misuse

7. Starting a Fundraiser • Fill out a Fundraiser Permission Request Form for Principal’s “OK” • Once approved, that form makes it to my office • Plan ahead for expenditures and communicate with your principal and bookkeeper; Keep ALL records pertaining to your fundraiser (5 years)

8. Expenditures • Plan ahead • Fill out purchase order, give to bookkeeper • Payment can only be made with a vendor’s invoice • NEVER pay for expenses out of undeposited cash • NEVER request a blank check • NEVER spend more $ than is in your account

9. Allowable Expenses • Faculty Account – Staff meals, refreshments, Christmas gifts, flowers, supplies • Student Groups – Funds from fundraisers should only be expended to benefit the members of the club or group

10. Acceptable Uses of Funds • Supplies & Materials used by student group members • Entry fees for competitions & meetings • Travel expenses for student members & adult sponsors • Membership in related organizations • Flowers or cards for condolence or appreciation

11. Acceptable Uses (cont.) • Charitable contributions (flow-through) • Expenditures for parties/entertainment of the student members • Equipment to be used by the student members of the organization (becomes property of HISD and must be properly tagged); principal approves items $250-$5,000; superintendent approves $5,000+ expenditures

12. Inappropriate Expenditures/Receipts • Any purchase not approved by the student membership of the group • Any purchase that benefits the adult sponsors and not the student membership • ANY raffle ticket or bingo game fund raiser

13. Unallowable Expenses • Sales Tax on Exempt Items • Loans to employees or parents • Membership in private clubs • Donations or contributions (except for “flow-through”) • Advertisements in periodicals/yearbooks, etc. • Alcoholic beverages • Auto repairs • Traffic citations • Monetary awards to employees • Payment for services to HISD employees (stipends, etc. must go through payroll office)

14. Tax Exemption on Purchases • Paying Sales Tax on Exempt items is a misuse of student funds • You will NOT be reimbursed for purchases made on behalf of the school group if merchandise should be tax exempt • Exempt items: Meals, State Hotel Tax, Items for resale (see Tax Free Sales), Supplies, etc. • Sales Tax IS required for items that become the property of the student, for ex. Cheerleading Uniforms or School Rings

15. Receipts • Checks should be made payable to HISD • Do not accept postdated checks • Use numerical sequence receipts – Make sure you have some! • Write in ink • When it is not possible to write a receipt for each person, use Tabulation of Moneys Received (Ex. Large amt. students)

16. Safekeeping Receipts • Count money as soon as possible (Same Day) • Turn money into the office/safe on the day it is collected with Receipt form filled out and signed • Do not keep money in your desk unless you have a locked drawer, then take to office/safe at end of day • Weekend deposits - night drop or talk with your principal/bookkeeper

17. Deposits • Remember the 3 day rule: Deposits MUST BE made within 3 (Three) days from receipt. • Cash receipts must equal your deposit 3

18. Taxable Sales Exemption • A student group may have TWO tax exempt fund raisers per school year. • This is called a one day tax free sales. Tax Free

19. Nontaxable Sales • Fees & admission tickets, ex. Drama, Koobraey • Club memberships • Sales of food, soft drinks, candy sold on regular school day during fundraisers for the student group • Sale of whole cakes or pies

20. Taxable Sales • School purchased supplies sold directly to students (ex. Athletic equip, cheerleading uniforms) • Fees for materials when the end product becomes the possession of student • Student publications (Ex. Yearbooks) • School rings • Books sold to students at book fairs

21. Taxable Sales, cont • Sponsors MUST COLLECT the sales tax on merchandise other than food that they sell. • The school that accepts responsibility for the activity must also be responsible for insuring that the correct tax is paid. • The sales tax rate is 8.25% • See Form A-6, Give to bookkeeper immediately following fundraiser

22. Fundraiser Report • Provides information for sponsor – was it successful/profitable? Should we do this fundraiser again? • Provides district with documentation if sponsor is later questioned

23. Fundraiser Reports, cont. • Must be completed within 10 days following the conclusion of fundraiser • Unrecoverable merchandise/money – list on report • Sign and give to bookkeeper/principal

24. Thank You! • Activity funds were invented because of the scarcity of school funds • Sponsors like you make it possible for students to learn and experience beyond the classroom environment • Questions? Call me at 363-7600, or email daniellebartels@herefordisd.net • Website: www.herefordisd.net Go to staff pages at the Business Office