2019-2020 PTA, PTO AND BOOSTER CLUB HANDBOOK...Johnston County Public Schools – 2019-2020 PTA, PTO...

2019-2020 PTA, PTO AND BOOSTER CLUB HANDBOOK

Johnston County Public Schools – 2019-2020 PTA, PTO and Booster Club Handbook of 23

Table of Contents

Organization Guidelines 3

Financial Guidelines 3-4

Fundraiser Guidelines 4

Treasurer Job Duties 5

Sample Forms:

Sample Bank Reconciliation 6

Sample Check/Payment/Order Request Form 7

Sample Deposit Reconciliation Report 8

Sample Concession Sales Report 9-10

Sample 50/50 Raffle Procedures 11-12

Sample Ticket Sales Report 13-14

Board Policies:

Policy Code: 2020 Parent Organizations 15-16

Policy Code: 2025 Booster Clubs 17-18

Policy Code: 7230 Sales and Solicitations 19-20

Policy Code: 7240 School-Related Organizations-Funds Management 21

Required Annual Review Checklist/Scope 22

JCPS Internal Auditor’s Contact Information 23


PTAs, PTOs and Booster Clubs with Johnston County Public Schools

PTAs, PTOs and Booster Clubs are vital support groups for Johnston County Public Schools. These

organizations involve parents that support a particular club or school. They are led by parents, NOT by

Johnston County Public School employees. These organizations ARE NOT considered a part of the school

system and funds for the organization are not handled by the individual schools.

Because the organizations and their activities reflect upon the school system, guidelines are provided stating

conditions in order to operate on behalf of the schools. These guidelines are addressed in Johnston County

Board of Education Policies 2020 Parent Organizations, 2025 Booster Clubs, 7230 Sales and Solicitations, and

7240 School-Related Organizations Fund Management. A copy of these policies is provided in this

HANDBOOK.

Individual school PTAs are members of the state PTA organization, which has developed a charter and filed

necessary legal papers to qualify as tax-exempt. Each PTA shall have its own federal tax identification number

from the Internal Revenue Service and become incorporated with the NC Secretary of State.

PTOs and Booster Clubs must be tax-exempt, nonprofit corporations. Nonprofit corporations are created by

filing the appropriate documents with the NC Secretary of State. Application for federal tax-exempt status must

be made with the Internal Revenue Service. Application for state tax-exempt status must be made with the NC

Department of Revenue.

Organization Guidelines

The organization shall file a copy of its approved organizing paperwork and provide the tax identification

number with the principal at the school the organization supports. IN NO CASE SHOULD THE

ORGANIZATION USE THE TAX ID NUMBER OF THE BOARD OF EDUCATION.

Each organization shall be furnished with Johnston County Board of Education Policies 2020 Parent

Organizations, 2025 Booster Clubs, 7230 Sales and Solicitations, and 7240 School-Related Organizations –

Funds Management. A copy of these policies is provided in this HANDBOOK.

The organization shall submit in writing to the principal the intent of the organization for approval by the

superintendent.

Each organization must establish a slate of officers with at least a president, secretary and treasurer.

Financial Guidelines

Sound accounting practices and good internal controls shall be put in place by the organization.

Each organization shall open a checking account in the name of the organization. The President and

Treasurer shall BOTH be on the checking account and TWO signatures shall be REQUIRED on all

disbursements (no debit cards).

Revolving charge accounts (credit cards or store accounts) must be established in a way or manner that the

bank or business extending credit knows and understands that neither the school nor the school system has

any financial responsibility for the payment of any obligations incurred by the club or association on the

account.


Job descriptions shall be established to identify job duties. The descriptions shall provide for internal

controls, to ensure several people are involved in the process. This is very important when handling

money. A job description for treasurer is included in this HANDBOOK.

A monthly financial report shall be prepared by the treasurer and reviewed by the president and other

officers. The report shall be presented at membership meetings and always available for members to

review. A copy of the monthly report shall also be provided to the principal of the school.

Sales taxes may need to be paid by the organization to the NC Department of Revenue (NCDOR). More

information can be obtained from the NCDOR at 1-877-252-3052 or by visiting the website at

www.dornc.gov.

Bank statements shall be reconciled monthly, with copies provided to all officers and principals and made

available to members. A sample bank reconciliation form is included in this HANDBOOK. The president

and treasurer shall both sign the bank statements or attached bank reconciliation forms upon completion of

the monthly reconciliations.

All accounts are required to be reviewed annually by an outside entity (an entity outside the organization

that is qualified to perform this compliance testing/agreed upon procedures engagement according to the

scope approved by the Board). The outside entity does not have to be a paid preparer. A report of the

review (containing the required checklist) shall be filed with the principal and the school system’s internal

auditor by October 1 for the preceding fiscal year ended June 30. Financial records shall be subject to

review by the principal or internal audit department upon request. Failure to provide a timely review

report or failure to provide financial records upon request may result in suspension or disbanding of the

organization.

Fundraiser Guidelines

Organizations must obtain approval from the principal for any fundraising event.

Johnston County Board of Education Policy 7230 Sales and Solicitations provides guidelines for

fundraisers. A copy is located in this HANDBOOK.

If products are sold, shipments shall be carefully inventoried to make sure all items are received before

products are distributed.

When an organization distributes products at the school, products shall be secured at all times (as cash

would).

Refund policies shall be clearly outlined when products are sold.

Bingos and Raffles shall be conducted in compliance with state laws. These activities are governed by NC

General Statutes 14-309.5 through 14-309.15. The organizations can find these laws at www.ncleg.net.

http://www.dornc./

http://www.ncleg.net/


Treasurer Job Duties

1. The treasurer is the person with “fiduciary” responsibility for the clubs funds. This means the funds are not

owned by this person but this person maintains the bookkeeping function for these funds that belong to the

organization.

2. Good internal control practices shall be followed and include:

a. Never sign a blank check.

b. Two signatures are required on every check.

c. All expenditures shall be made by check or electronic payments (no debit cards). Purchases shall

NEVER be made with cash.

d. Strong internal controls shall be used to ensure proper use of revolving charge accounts (credit cards or

store accounts). Charge accounts shall be used for the organization’s use only (never for personal

expenses). A receipt from all charges must be submitted to the treasurer in a timely manner, stating the

purpose of the charge and the name of the person who made the purchase. Charges for alcohol will not

be approved under any circumstances and will become a personal responsibility of the cardholder. All

charges must adhere to the approved budget and prior approval from the organization’s president is

required for all purchases. Credit limits shall be reviewed by officers each year. Credit cards shall be

kept in a secure location. Names of authorized users shall be approved by current officers.

e. A checking account with the organization’s name shall be used. Never deposit any money into a

personal account.

f. The organization’s funds shall be kept separate from all other funds (including the school’s funds).

g. Maintain complete records including bank statements and images of cancelled checks.

h. At the end of the treasurer’s term, all records shall be in balance and all bills shall be paid. If there is a

treasurer change mid-year, a review shall be performed by a three-member committee (no officers)

before the next treasurer takes over the books. Even if a mid-year review is performed due to a

treasurer change, the organization is still required to submit an annual review by October 1st

(performed by an outside entity). However, if the treasurer changes effective July 1st, the annual

review of the previous fiscal year (performed by an outside entity) is the only review necessary.

3. The following files shall be maintained:

a. Receipt Book or Log-

If money was collected from a person (catalog orders, etc.), then a receipt book or log shall be

maintained. The receipt book/log shall list the person’s name, date money was collected, amount

of money collected, and the purpose of the money.

If money was collected from a group of people (bake sale, car wash, concession sales, etc.), then

two people shall count all the money immediately after the fundraiser ends. A deposit

reconciliation report or concessions sales report shall be completed and signed by two people.

In either case, the treasurer verifies the funds and makes a deposit to the bank within one business

day. The bank deposit slip shall be attached to the deposit reconciliation report or concessions

sales report and both the president and treasurer shall sign this report.

b. Checks/Electronic Payments-

A form shall be used to request funds from the treasurer. This form (commonly called a voucher or

check request) shall list the amount, the person’s/vendor’s name the check shall be made payable to

and the approval signature of the president. A sample check request form is included in this

HANDBOOK.

The form includes a description and shall always have some type of supporting documentation

such as invoices, contracts or receipts attached as proof of the purchase.

The treasurer receives the request and then gives it to the president to approve. Once the president

has approved the request, the treasurer can write the check/process the electronic payment. This

provides for a check and balance system so that one person does not have control of these funds.


SAMPLE BANK RECONCILIATION

Organization’s Name: ___________________________________________________________

Statement Ending Date: _________________________________________________________

1) Bank Statement Ending Balance ________________

2) Add outstanding deposit(s) (not listed on this statement) ________________

3) Add total of lines 1 and 2. ________________

4) Deduct outstanding check(s)/payments (not listed on this statement) ________________

5) Deduct debits such as bank charges and NSF checks ________________

6) Ending Balance (Subtract lines 4 & 5 from line 3.) ________________

This should match your current checkbook balance.

I certify the above information is correct

Treasurer’s Signature

Date

President’s Signature Date

Outstanding Checks/Debits

Check Number: Amount

Total Amount:

Outstanding Deposits/Credits

Date: Amount

Total Amount:


Sample Check/Payment/Order Request Form Check # _____________

(Treasurer will enter #)

Check/Electronic Payment Payable to: ___________________________________ Date: ______________

Vendor’s Address: _________________________________________________________________________

Vendor’s Phone Number: ___________________________________________________________________

Amount: $______________________ Date Check/Payment/Order is Needed: _______________________

Reason for Request: _______________________________________________________________________

_________________________________________________________________________________________

Check/Payment/Order Requestor: ___________________________________________________________

____________________________________________________ ___________________________________

Requestor’s Signature Date

Return Check to Individual or Mail Directly: ______ Individual _____________________ Mail Directly

Date Mailed

INVOICE AND/OR RECEIPT MUST BE ATTACHED TO CHECK/PAYMENT REQUEST FORM

APPROVED BY: (Two signatures required on Check/Payment Request Form & Check)

____________________________________________ ________________________

Treasurer’s Signature Date

____________________________________________ ________________________

President’s Signature Date

---------------------------------------------------------------------------------------------------------------------------------------

If returning check to individual, complete this section when individual receives check:

Check Number: _________________________ Check Date: _____________________

______________________________________________ ________________________

Individual’s Signature Acknowledging Receipt of Check Date


Sample Deposit Reconciliation Report

Date Money Was Collected: __________________________________________________________________

Reason Money Was Collected: ________________________________________________________________

___________________________________________________________________

Change Fund Amount (if applicable): $_______________________________________________________

Signature of Person Who Verified Change Fund Amount: _______________________________________ (this should not be the same person who set up the cash box)

Total Checks: $____________________

Total Cash: $____________________

Total Coins: $____________________

TOTAL FUNDS COLLECTED: $____________________ (this should equal the total on the deposit slip from the bank)

Less Change Fund Amount: $____________________ (if applicable)

Total Profit for Event: $____________________

_______________________________________________ Signature of Money Counter #1

_______________________________________________

Signature of Money Counter #2

_______________________________________________

Signature of Treasurer (if not one of the money counters listed above)

_______________________________________________

Signature of President (if not one of the money counters listed above)

*Deposit slip from bank should be attached to this form.


SAMPLE CONCESSION SALES REPORT Date: __________________ (ALL information and signatures should be legible)

Event: ____________________________________________ Change Fund Amount: _____________

___________________________________________________ _________________________________ Signature of Organization’s President/Designee Date

(Above information completed by organization’s treasurer, verified and signed by organization’s president/designee)

CONCESSION ITEMS CHECKLIST (Below information completed by Sponsoring Organization’s President/Designee/Seller)

General Description of Items Sold Quantity Sold Cost Per Item Total Collected Per Item

Total Collected for All Items Sold

SETTLEMENT OF CONCESSIONS SOLD AND TOTAL FUNDS COLLECTED (Completed by Organization’s President & Sellers)

A. Total Collected for All Concession Items Sold $_____________________

B. Total Collected for Concession Items Sold and Change Fund $_____________________ (Total amount on line A + change fund amount)

C. Total Checks in Cash Box (Checks only) $_____________________

D. Total Currency (Cash) in Cash Box (Cash only) $_____________________

E. Total Coins in Cash Box (Coins only) $_____________________

F. Total Checks, Cash and Coins in Cash Box (Add lines C, D & E) $_____________________

G. Less Total Concessions Sold and Change Fund (Total on line B) $_____________________

H. Difference (Over/Short) (F – G = H) $_____________________

Reason for Difference: ______________________________________________________________________

Signatures Verifying Settlement Information (including final counting out of cash box):

_________________________ ___________________________ __________________________________ Signature of Seller #1 Signature of Seller #2 Signature of Organization’s President/Designee

RECEIPT OF TOTAL FUNDS COLLECTED Signatures Verifying Receipt and Deposit Totals the Following School Day/Day of Deposit (review reconciliation for accuracy

and verify cash box in the presence of Organization’s President):

___________________________________________________________ ________________________________

Signature of Organization’s Treasurer Date

___________________________________________________________ ________________________________

Signature of Organization’s President Date


INSTRUCTIONS FOR CONCESSION SALES REPORT AND CASH HANDLING PROCEDURES:

1. This form is to be completed the day of the event by the appropriate people listed on each section of

the report.

2. The event and date should be entered indicating what function the concessions were sold.

3. The treasurer will complete the “Concession Sales Report Change Fund Verification” section of the

form indicating the amount of the change fund provided to the organization’s president/designee or

seller(s).

4. The organization’s president/designee or seller(s) will count out the change fund in the presence of

the treasurer, and sign the form indicating acceptance and acknowledgment of money received.

5. The organization’s president/designee and seller(s) will complete the “Settlement of Concessions

Sold and Total Funds Collected” section of the form.

A. Indicate the total collected for all concession items sold on line A;

B. Add total collected for concession items sold and change fund amount together on line B;

C. Add total amount of checks and enter on line C;

D. Add total amount currency (cash only) and enter on line D;

E. Add total amount of coins and enter on line E;

F. Add total checks, cash, & coins and enter on line F (C + D + E = F);

G. Insert amount from line B on line G;

H. Calculate any overage/shortage (F – G = H);

6. The organization’s president/designee and seller(s) will explain the reason for any overage or

shortage and all these people should sign this section.

7. The treasurer will review the reconciliation for accuracy. The treasurer will also verify total funds

collected in the presence of the organization’s president. Both the treasurer and president should

sign and date this section.

8. Any changes to the form are to be initialed by the person making the change.

9. All funds should be secured and deposited the next business day.

Optional counting form:

Checks

100’s

50’s

20’s

10’s

5’s

2’s

1’s

Total Amount of Cash

0.25

0.10

0.05

0.01

Total Amount of Coins


Sample 50/50 Raffle Reconciliation Report

Organization’s Name:____________________________ Date of drawing:__________________

Ticket Color: _____________________________ Change Fund Amount: $_________________

Ticket Numbers: ____________________________ through _____________________________

________________________________________________________ ____________________________

Verified by Organization’s Designee Date

_____________________________________________________________________________

Last Ticket Number Sold _____________ Minus 1st Ticket Number Sold _____________ + 1 =_____________

(Number of tickets sold)

Price Per Ticket: $__________________

Multiplied by Total Number of Tickets Sold: __________________

Plus Additional Donations Received: $__________________

Plus Beginning Change Fund Amount: $__________________

Total Amount: $__________________

_______________________________________________________________

Total Amount (same as listed above): $__________________

Less Change Fund Amount: $__________________

Less Additional Donations Received: $__________________

Total Profit: $__________________

Total Prize Amount (½ total profit): $__________________ ____________________________ ______________________________ ________________

Verified by Organization’s Designee #1 Verified by Organization’s Designee #2 Date

Winner’s Name: __________________________________________(*SSN needed if $600 or more)

Winner’s Address: ________________________________________

________________________________________

Winner’s Phone Number: __________________________________

Total Prize Amount Received: $______________________________* (*If prize amount equals or exceeds $600, the winner must write their social security number beside their name since a 1099 will be

issued.)

_______________________________________________ Signature of Winner

__________________________________________________________________________________________

__________________________________ _________________ ________________ Verified by Organization’s Treasurer Total Amount Deposited Date

________________________________________ _____________________

Verified by Organization’s President Date

The 50/50 Reconciliation Form should be kept with the deposit summary and bank receipt. Please remember to include the beginning

change fund and additional donation amounts when depositing the fundraiser profits.


50/50 Raffles - Money Handling Procedures

The following standard procedures should be followed when organizations sponsor a 50/50 raffle:

● A roll of numbered tickets should be obtained.

● The treasurer should list the beginning and ending ticket numbers on the reconciliation report. If a

change fund is needed, the treasurer should list the beginning change fund amount on the top portion of

the reconciliation report.

● The volunteer in charge of the event should verify the ticket numbers received and beginning cash fund

amount and sign the top portion of the reconciliation report.

● At the end of the fundraiser, the volunteer in charge of the event and at least one other organization

member should list the number of tickets sold times the selling price and reconcile to the amount of

money collected. They should note on the reconciliation report that half the profit was given away as

prize money. They need to list the winner’s name and prize amount and have the winner sign to show

receipt of the money. The winner should also print his/her name, address, and phone number. If prize

amount equals or exceeds $600, the winner must write their social security number beside their name

since a 1099 will be issued. Both volunteers should sign the bottom portion of the report after

reconciling the tickets and total money collected. The money should be secured in a safe at the school

or in the night depository at the bank.

● The following business day, the treasurer should count the money in the presence of another officer.

They both need to sign the bottom on the reconciliation report.

● This reconciliation report should be kept with the deposit information.


SAMPLE TICKET SALES REPORT (ALL information and signatures should be legible)

Sponsoring Organization: ___________________________________________________________________

Event: _____________________________________________________ Date: _________________________

TICKET CHECKOUT AND CHANGE FUND VERIFICATION (Completed by organization’s treasurer, verified and signed by organization’s president/designee/seller)

Ticket Color(s):________________________________________ Change Fund Amount: $______________

Ticket Numbers:__________________________________ through__________________________________ 1st Ticket Number on Roll (note color if more than one) Last Ticket Number on Roll (note color if more than one)

Verified Receipt of Above Tickets and Change Fund:

___________________________________________________ ________________________________ Signature of Organization’s President/Designee/Seller Date

SETTLEMENT OF TICKETS SOLD AND TOTAL FUNDS COLLECTED (Completed by Organization’s President/Designee & Sellers)

A. Last Ticket Number Sold _____________ Minus 1st Ticket Number Sold _____________ + 1 =______________

(Number of tickets sold)

B. Number of Tickets Sold: ______________ @ $___________ = $_____________________ (Total value of tickets sold)

C. Add Total Value of Tickets Sold and Change Fund Amount $_____________________ (Amount on line B + change fund amount)

D. Checks Amount in Cash Box (Checks only) $_____________________

E. Currency Amount in Cash Box (Cash only) $_____________________

F. Coins Amount in Cash Box (Coins only) $_____________________

G. Total Checks, Cash and Coins in Cash Box (Add lines D, E & F) $_____________________

H. Less Total Tickets Sold and Change Fund (Total on line C) $_____________________

I. Difference (Over/Short) (G – H = I) $_____________________

Reason for Difference: ______________________________________________________________________

Signatures Verifying Settlement Information (including final counting out of cash box):

________________________________ ________________________________ ________________________________________________

Signature of Seller #1 Signature of Seller #2 Signature of Organization’s President/Designee

RECEIPT OF TOTAL FUNDS COLLECTED Signatures Verifying Receipt and Deposit Totals the Following School Day/Day of Deposit (review reconciliation for accuracy

and verify cash box in the presence of Sponsoring Organization’s President):

________________________________________________________ _____________________________

Signature of Organization’s Treasurer Date

________________________________________________________ _____________________________

Signature of Organization’s President Date


INSTRUCTIONS FOR TICKET SALES REPORT AND CASH HANDLING PROCEDURES:

1. This form is to be completed the day of the event by the appropriate people listed on each section of

the report.

2. The event and date shall be entered indicating what function the tickets were sold.

3. The treasurer will complete the “Ticket Checkout and Change Fund Verification” section of the form

indicating the ticket color(s), the first and last ticket numbers on the ticket roll(s), and amount of the

change fund provided to the sponsoring organization’s president/designee or seller(s).

4. The sponsoring organization’s president/designee or seller(s) will verify the ticket numbers, count

out the change fund in the presence of the treasurer, and sign the form indicating acceptance and

acknowledgment of tickets and change fund received.

5. The sponsoring organization’s president/designee and seller(s) will complete the “Settlement of

Tickets Sold and Total Funds Collected” section of the form.

A. Indicate the last ticket number sold – 1st ticket number sold + 1 to calculate the total number of

tickets sold;

B. Multiply the total number of tickets sold by the purchase price to calculate the total value of

tickets sold;

C. Add the total value of tickets sold to the change fund amount;

D. Add total amount of checks in cash box;

E. Add total amount of currency (cash only) in cash box;

F. Add total amount of coins in cash box;

G. Add total amounts of checks, currency, and coins (D + E + F = G);

H. Insert amount from line C on line H;

I. Calculate any overage/shortage (G – H = I);

6. The sponsoring organization’s president/designee and seller(s) will explain the reason for any

overage or shortage and all these people should sign this section.

7. The treasurer will review the reconciliation for accuracy. The treasurer will also verify remaining

tickets and total funds collected in the presence of the sponsoring organization’s president. Both the

treasurer and president should sign and date this section.

8. Any changes to the form are to be initialed by the person making the change.

9. All funds shall be secured and deposited the next business day.

Optional counting form:

Checks

100’s

50’s

20’s

10’s

5’s

2’s

1’s

Total Amount of Cash

0.25

0.10

0.05

0.01

Total Amount of Coins


Policy Code: 2020 Parent Organizations

Principals

The board encourages the development and participation of parent organizations that support the goals of the

board and the schools. The board also supports parent organizations as an effective means of actively involving

parents in the schools. The superintendent and school officials are expected to educate such organizations on the

goals of the board and individual schools, especially as it relates to improving student success. The

superintendent and school officials also are expected to help such organizations in identifying opportunities to

assist the schools in meeting these goals.

Conditions For Establishment And Continual Operation Of Parent Organizations

Parent organizations, including PTAs and PTOs, are not considered a part of a school district. However,

because the organizations and their activities reflect upon the school district, all parent organizations must

accept the following conditions in order to operate on behalf of the schools.

The superintendent will approve the establishment of parent organizations.

PTAs are members of the state organization which has developed a charter and filed necessary legal

papers to qualify as tax-exempt. Both PTAs and PTOs shall file forms N-01 (Articles of Incorporation)

and N-14 (tax exempt form) with the NC Secretary of State in order to become a nonprofit

corporation. Articles of Incorporation bylaws must provide for the distribution of club assets to the

school or school system and not to the officers or members of the club in the event of the dissolution of

the organization. The PTO must be a tax-exempt, nonprofit corporation with necessary papers being

filed with the Internal Revenue Service and the NC Department of Revenue.

All parent organizations must provide the superintendent and the principal with a document describing

the purpose of the organization and the general rules and procedures by which it will operate. Any

modifications also must be shared in writing with the superintendent and the principal.

Parent organizations must obtain prior approval from the principal for (1) any fundraising event, (2) any

purchase for the school, (3) any function involving the participation of students, or (4) any event which

is likely to reflect upon the school or school district.

When making purchases of items, the club or association shall notify the vendor or suppliers, in writing,

that the club or association and not the school or school system is the purchaser and that neither the

school nor the school system shall accept any responsibility for the payment of the invoice or purchase

price of the items sold.

Bank accounts should reflect the official name of the club or organization and carry the tax ID number

of the club or organization. In no case may the school system's tax ID number be used on a PTA/PTO

bank account. Bank accounts and revolving charge accounts, if any, of the club or association must be

established in such a way or manner that the bank or business extending credit knows and understands

that neither the school nor the school system has any financial responsibility for the payment of any

obligations incurred by the club or association on the account.

Parent organizations are responsible for maintaining their own financial records. All accounts are

required to be reviewed annually by an outside entity. A report of the review shall be filed with the

principal and the school system's internal auditor by October 1 for the preceding fiscal year ended June

30. Employees of the school are not permitted to routinely manage the affairs of parent organization

during the workday. Financial records shall be subject to review by the principal or superintendent's


staff, upon request. Failure to provide a timely review report or failure to provide financial records upon

request may result in suspension or disbanding of the organization.

The internal audit department will provide a handbook with guidelines and suggested practices for

financial record keeping and club operation.

It is required that club or association use the school's address as its business address to maintain the

continuity of club or association records.

Parent organizations are expected to take into consideration the cultural diversity and economic

differences of students and parents in planning various functions.

All parent organizations will follow state and federal guidelines with regards to fundraisers and tax

requirements.

After proper organization, should a PTA or PTO fail to adhere to the established guidelines, rules and

regulations of the organization or fail to act in a manner consistent with the educational purposes for

which it was established, the principal with the approval of the superintendent may suspend or disband

the organization.

The Board of Education accepts no responsibility or any liability for actions or financial/contractual obligations

or any other cause of actions of the organization.

All items purchased by parent organizations or booster clubs for a school or for school use become the property

of the Johnston County Board of Education if accepted by the Johnston County Board of Education.

Adopted: June 14, 2005 Amended: May 12, 2015; May 10, 2016; August 8, 2017

JOHNSTON COUNTY PUBLIC SCHOOLS


Policy Code: 2025 Booster Clubs

Introduction

All booster clubs and similar associations which are organized for the purpose of improving, developing and

supporting extra-curricular activities or programs of any school must be authorized and approved, in advance by

the principal, subject to the review of the Superintendent, or his designee, in accordance with the criteria set

forth in this policy. Booster clubs which are not approved by the school system may not use the name of the

school in the name of the organization.

Conditions for Establishment and Continual Operation of Booster Clubs

• A copy of the booster club or association's Articles of Incorporation and/or copy of its bylaws must be

submitted to the principal for review and approval by the superintendent. The principal shall retain a copy for

the school records.

1. The club or association must be a nonprofit, tax-exempt corporation or association, with necessary

papers being filed with the Internal Revenue Service, NC Department of Revenue, and the NC Secretary

of State.

2. Its Articles of Incorporation or association bylaws must provide for the distribution of club assets to the

school or school system and not to the offices or members of the club or association in the event of the

dissolution of the club or organization.

• Booster Clubs must obtain prior approval from the principal for (1) any fund-raising event, (2) any

purchase for the school, (3) any function involving the participation of students, or (4) any event which is

likely to reflect upon the school or school district.

• When making purchases of items, the club or association shall notify the vendor or suppliers, in writing,

that the club or association and not the school or school system is the purchaser and that neither the school

nor the school system shall accept any responsibility for the payment of the invoice or purchase price of the

item sold.

• Bank accounts should reflect the official name of the club or organization and carry the tax ID number of

the club or organization. In no case may the school system's tax ID number be used on a booster club or

organization's bank account. Bank accounts and revolving charge accounts, if any, of the club or association

must be established in such a way or manner that the bank or business extending credit knows and

understands that neither the school nor the school system has any financial responsibility for the payment of

any obligations incurred by the club or association on the account.

• The club will provide for an annual review of the financial books and records of the club or association by

an outside entity. Copies of the review shall be filed with the principal and the school system's internal

auditor by October 1 for the preceding fiscal year ended June 30. A copy shall also be provided to the

organization being reviewed. Financial books shall be subject to review by the principal or superintendent's

staff upon request. Failure to provide a timely review report or failure to provide financial records upon

request may result in suspension or disbanding of the organization.

• The internal audit department will provide a handbook with guidelines and suggested practices for

financial record keeping and club operation.

• It is required that the club or association use the school's address as its business address to maintain the

continuity of club or association records.

• All school-sponsored organizations will follow state and federal guidelines with regards to fundraisers and

tax requirements.


• After proper organization, should a Booster Club fail to adhere to the established guidelines, rules and

regulations of the organization of fail to act in a manner consistent with the educational purposes for which it

was established, the principal with the approval of the superintendent may suspend the association of the

organization with the school.

The Board of Education accepts no responsibility or any liability for actions or financial/contractual obligations

or any other cause of actions of the organization.

All items purchased by parent organizations or booster clubs for a school or school use become the property of

the Johnston County Board of Education if accepted by the Johnston County Board of Education.

Adopted: June 14, 2005

Amended: May 12, 2015, October 13, 2015, June 13, 2017

Johnston County Public Schools


Policy Code: 7230 Sales and Solicitations

A. STORE SALES

School stores may sell supplies and related items; however, they shall not sell food products.

B. SALES OR SOLICITATIONS SPONSORED BY PARENTS, ORGANIZATIONS, BOOSTER CLUBS, ETC.

Sales or solicitations sponsored by parents, organizations, booster clubs, etc., which are held outside the school

and do not involve students in direct sales do not require board of education approval. Revenues received by the

school from such projects are considered gifts and, the school nor the board of education accepts responsibility

for any liability connected with the project. In such cases, the entire project must be handled by the sponsoring

organization.

Projects jointly sponsored by an organization and the school must meet all requirements of the board of

education for school sponsored projects.

C. STUDENT AND FACULTY INVOLVEMENT IN SALES (9-12)

Every fundraising project involving sales by students in grades 9 through 12 to persons outside the school must

be approved by the superintendent or designee.

No instructional time may be used for the purpose of sales to the public and no student may be excused from

school for the purpose of participating in a sale or solicitation.

The superintendent or designee will consider approval when the request is made on the official forms provided

by the school system and when required supporting data is included. The data must include:

1. The product to be sold and a copy of the proposed contract with the vendor. No contract is binding on the

school unit until it is approved by the superintendent or designee.

2. The inclusive dates of the sales. All activities must be concluded within thirty days after the final day of

sales.

3. The sponsoring club or group within the school that plans to conduct the sale.

4. The specific purposes for which the funds are to be used, the estimated amount required for those purposes,

and the amount estimated to be raised through the sale.

5. The number of students to be involved in the sales.

6. The teachers or administrators who will be responsible for the sales project.

D. STUDENT AND FACULTY INVOLVEMENT IN SALES (GRADES K-8)

The effective school sales program shall safeguard the total development and the well-being of students.

Schools and school-related organizations such as the PTA may conduct fundraising activities if students are not

involved in direct sales and solicitation of contributions, pledges, or orders. The above restrictions do not

prevent parents from ordering school pictures.


E. ATHLETIC ADMISSIONS, YEARBOOKS, NEWSPAPERS

The sale of admission tickets to athletic events, concerts by school bands, school vocal groups, or other student

performances does not require specific approval by the superintendent.

The sale of advertising space in school yearbooks and school newspapers does not require the approval of the

superintendent.

F. FUND PURPOSES

Fund-raising activities of students and teachers in the school shall be limited to purposes that have recognized

educational value, and such activities shall not be used as the primary means of providing equipment, materials

and services that are ordinarily financed by capital outlay and/or maintenance and operation funds. Fundraising

efforts which are for the personal gain of an individual are prohibited.

G. ACCOUNTING FOR FUNDS RECEIVED THROUGH SALES AND SOLICITATIONS

The Johnston County Board of Education shall require a final report from the faculty or administrative sponsor

and approval by the principal at the conclusion of each sale or project. Such report shall include an accounting

of all receipts and disbursements, and the disposition of items not sold.

Forms for this final report will be provided by the superintendent.

All disbursements shall be by check, in accordance with applicable laws and regulations, and subject to review

by the Johnston County Board of Education.

The superintendent may develop procedures for the accounting of funds received by school-related

organizations.

H. USE OF APPROVED CROWDFUNDING FUNDRAISERS

The use of any crowdfunding sites must be approved in advance of posting the fundraiser. The approved

regulations as detailed in Policy 7230R must be utilized.

Legal References: None

Adopted: February 9, 1982

Amended: December 14, 1983; August 14, 1990; April 13, 2004; February 9, 2010; May 12, 2015; February 9,

2016, May 9, 2017



Policy Code: 7240 School-Related Organizations - Funds Management

School-related organizations or organizations which engage in public fund-raising activities in the name of the

school or for the purpose of supporting school programs and extracurricular activities must be properly

accountable to the public which contributes to such efforts and the school. These groups shall adopt a

constitution or set of rules/by-laws which are approved by the membership prior to acting for or on behalf of the

school. As part of the rules/by-laws providing for duly-elected officers, one officer shall be designated as

organization treasurer charged with maintaining accurate and current financial records. These records shall be

shared regularly at meetings of the membership or executive committee in a written financial report. The

principal shall be apprised of the financial reports and share these reports with the school system's internal

auditor.

School-related organizations are responsible for maintaining their own financial records and depository separate

from the school's accounts. All disbursements from organizational funds should be approved by the executive

committee and shall require two signatures (generally the president/chief officer and treasurer) on all

disbursements. All accounts are required to be reviewed annually by an outside entity. A report of the review

shall be filed with the principal and the school system's internal auditor by October 1 for the preceding fiscal

year ended June 30. Employees of the school are not permitted to routinely manage the affairs of school-related

organizations during the workday. Financial records shall be subject to review by the principal or

superintendent's staff, upon request. Failure to provide a timely review report or failure to provide financial

records upon request may result in suspension or disbanding of the organization.

All funds shall be deposited in a separate organization banking account. The organization treasurer shall be

bonded for a limit equivalent to the organization's annual budget.

Legal References: G.S. 115C-47, -448

Adopted: April 13, 2004

Amended: February 9, 2010; May 12, 2015; October 13, 2015; June 13, 2017


http://redirector.microscribepub.com/?cat=stat&loc=nc&id=115c&spec=47

http://redirector.microscribepub.com/?cat=stat&loc=nc&id=115c&spec=448


Yes No N/A

The scope of the review is as follows:

1. Confirm that the organization’s Articles of Incorporation and bylaws were provided to the reviewer or are listed on the NC Secretary

of State's website (www.sosnc.gov) showing that the organization is a nonprofit corporation.

2. Confirm that a copy of the Johnston County Public Schools’ PTA, PTO, and Booster Club Handbook was provided to the reviewer.

3. Confirm that a list of organization’s officers (minimum of president, secretary, and treasurer) was provided to the reviewer.

4. Confirm that the organization is a member of the NCPTA organization (if organization is a PTA)

5. Confirm that the PTO or booster club provided written documentation showing approval of 501(c )(3) or other tax-exempt status

from IRS (or reviewer can confirm this on the IRS website)

6. Confirm that organization provided written documentation from the IRS stating the federal tax identification number (EIN). Proof

would include the original letter from the IRS assigned the EIN to the organization. Another acceptable document would be the prior

years' Form 990 showing the EIN.

7. Confirm that 1099's were filed for previous calendar year for qualifying payments as required by the IRS by providing copies of

these forms to the reviewer.

8. Confirm that all required 990 filings are current with the IRS by providing copies of these forms or e-filing confirmations to the

reviewer.

9. Confirm the use of dual signatures on checks or electronic payments for at least 20% of disbursements. Reviewer may confirm this

by reviewing cancelled checks or check images on bank statements, as well as supporting paperwork for electronic payments.

10. Confirm that the disbursements tested were made by check or electronic payments only (no debit cards or cash).

11. Confirm that supporting paperwork (check/payment request with dual signatures, invoices, receipts, and/or packing slips) was

provided on at least 20% of disbursements.

12. Confirm that supporting paperwork (deposit slips, deposit reconciliation reports, fundraiser reports, or concession sales reports)

was provided for at least 20% of deposits.

13. Confirm that the organization has a receipting process for fundraisers and other collections, where amounts are reconciled to the

bank deposits.

14. Confirm that funds are deposited in a separate organization banking account (not the school’s bank account). This account shall

reflect the official name of the club or organization and carry the tax ID number of the club or organization.

15. Confirm that at least two officers’ names are on the bank signature card (President and Treasurer). The organization's officers

shall provide a copy of the bank signature card to the reviewer.

16. Confirm that financial records are shared regularly at meetings of the membership or executive committee in a written financial

report. Monthly financial reports or meeting minutes containing this information shall be provided to the reviewer.

17. Confirm that the organization’s treasurer is bonded for a limit equivalent to the organization’s annual budget. A copy of the

current position bonding insurance policy and approved annual budget shall be provided to the reviewer.

(Name of Organization)

(Signature of Qualified Outside Entity/Reviewer)

(Print Name of Reviewer)

(Email address of Reviewer)

*Additional comments may be attached if needed

Required Annual Review Checklist

Upon completion of the June 30 bank reconciliation, an annual review shall be scheduled with an outside entity (an entity outside the organization who is qualified to

perform this compliance testing/agreed upon procedures engagement according to the scope approved by the Board). The following checklist must be

completed/signed by the reviewer and submitted to the school’s principal and the Johnston Public County Schools’ Internal Audit Department by October 1

(per school board policy 7240) for the preceding fiscal year ended June 30. Reviewers shall confirm the following items based on written documentation (not verbal

information). For PTAs, this annual review replaces the standard review for the NCPTA and the results shall be reported to them by their required deadline.

(Telephone Number of Reviewer)

(Date)

(Period Ending)


Thank you to all our volunteers! We appreciate everything you

do for our students and staff. Please feel free to contact me with any questions or concerns.

Tracy Stubblefield Internal Auditor

Johnston County Public Schools P.O. Box 1336

Smithfield, NC 27577 Phone: (919) 934-6032 Ext. 7052

Cell: (919) 796-7163 Fax: (919) 209-0778

[email protected]

mailto:[email protected]

2019-2020 PTA, PTO AND BOOSTER CLUB HANDBOOK...Johnston County Public Schools – 2019-2020 PTA, PTO...

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Transcript of 2019-2020 PTA, PTO AND BOOSTER CLUB HANDBOOK...Johnston County Public Schools – 2019-2020 PTA, PTO...