Student Organization Sponsor Training

Sponsor Training

Sponsor ResponsibilitiesThe Sponsor of each student organization is responsible for the proper administration of the organizations funds.These responsibilities include:Safekeeping of the organizations fundsEnsuring organization receipts and expenditures are handled in accordance with District policies and proceduresOversight of organization fundraisers in compliance with District policies and procedures

Cash receiptsA receipt should be issued for all money collected.All money must be submitted to the Secretary in the same form as collected. Cash collected may not be used to make purchases or payments of any kind.Do not co-mingle District and personal funds for any reason.Money should not be kept unsecured in the classrooms or taken home. Collections should be submitted to the Secretary daily. (Exception is made if amount collected is less than $50, it is maintained in a secured location, and submitted by the end of the week).ReceiptsThere are several forms of receipts that may be used. Select the form that is most appropriate and efficient.Individual ReceiptsTabulation Receipt Form Ticket Receipt FormProduct Receipt Form

Individual ReceiptsAppropriate for large amounts collected.Triplicate receipt books should be used. (1- original to person making payment, 2 - submitted to Secretary, 3 - remains in the book)The receipts should be filled out completely.The receipts should not be pre-dated and pre-signed.After all receipts are issued, the second copy should be removed from the book and attached to a Deposit Form.The Deposit Form indicates who is submitting the funds, amount collected, beginning and ending receipt numbers, etc.The totals per the deposit slips must agree to the total funds submitted to the Secretary.Example Individual Receipts

Tabulation receipt formAppropriate for high volume of small payments in the same amount.Incorporates the information in the Deposit Form with the details of the amounts collected into one form.When funds are collected, payment form (cash or check) are noted along with the name and amount.The person submitting the funds initials on the line indicating agreement in amount submitted.The money should be submitted along with the Form to the Secretary. Amounts submitted must agree to the Form.

Example tabulation receipt form

Tabulation receipt formAn acceptable alternative to the Tabulation Receipt Form is the use of a class roster.Simply print a class roster and notate the amount received from the student next to their name and write the check number if paying by check. The student should initial the sheet if possible.Attach a Deposit Form to the roster and submit to the Secretary. (The Deposit Form documents who collected the funds, purpose, etc. for the Secretary to ensure the deposit is recorded to the correct account.)

Product/ticket receipt formsAppropriate when selling product or issuing tickets.Calculates the amount you shouldve collected based on beginning and ending product quantities or ticket numbers.The money should be submitted along with the Form to the Secretary. Amounts submitted must agree to the Form.

Example product receipt form

Example ticket receipt form

12Submitting to the secretaryAll deposit/receipt forms must be filled out completely or they will not be accepted by the Secretary.All money and supporting forms must be turned into the Secretary and counted in the Sponsors presence.DO NOT PUT MONEY ON THE SECRETARIES DESK, CHAIR, ETC.Until the time that the Secretary has counted the money in your presence and issued you a receipt for an amount that you both agree on, the money is the Sponsors responsibility.

Cash disbursementsAs the Sponsor for the organization, you are responsible for approving cash disbursements and giving the student groups guidance on appropriate expenditure of funds.Funds should be used for the good of all students in the organization, the general good of the campus, or the mission of the organization.All cash disbursements should be requested on a Check Request Form and require approval by the Principal. FundraisersAll fundraising activities must be approved by the Principal (or his designee) on a Fundraiser Approval and Recap Form before the fundraiser.The Form gives information about the fundraiser and lists estimated receipts and disbursements.After the conclusion of the fundraiser, the Form should be updated for actual receipts and disbursements and submitted for the Principal (or his designees) review.By completing the financial information in the form, the Sponsor and organization are able to assess the success of the fundraiser.Fundraiser approval and recap form example

FundraisersCash receipts and disbursements procedures are applicable to all fundraisers.Sponsors should consider whether the fundraiser has an appropriate purpose.In addition, the Sponsor should considering the number of fundraisers conducted thus far in the school year.Lastly, the Sponsor needs to consider sales tax implications.Sales taxIn general, approach sales by the school and student organizations as taxable UNLESS the sale falls into an exempt category or the organization is using a tax-free sales day.

Sales tax - exempt itemsFood SalesFood products (including candy and soft drinks) sold during the school day.Food products (including candy and soft drinks) sold outside of the school day if the sales are part of an organizations fundraising drive and net proceeds go back to the organization for its exclusive use.Concession stand sales if the sales part of an organizations fundraising drive and net proceeds go back to the organization for its exclusive use.Annual banquet or other food sale provided it is not professionally catered and is prepared, served and sold by the members of the organization.Sales tax is never due on non-taxable food items (i.e. cookie dough, pizza kits, cheese spreads, fruit, etc.).Bakery items (i.e. pies, cakes, bagels, muffins, etc.) are exempt unless sold with plates or eating utensils.Sales tax - exempt items cont.ServicesAdmission tickets to amusement services provide by the school organization (i.e. school play, carnival, dance, athletic event, etc.)Car washesCosmetology services (products are taxable)Automobile repair (parts are taxable if charged separately)Parking permitsFees/finesAdvertising spaceGift certificates and PassbooksMagazine subscriptions for six months or moreRental of real property (i.e. gym, auditorium, etc.)

Tax-free sales daySchool districts, schools and bona fide chapters within a school may conduct TWO one-day tax-free sales each calendar year.The designated day may be either the day the items are delivered by the vendor to the school organization or the day the items are delivered to the customer. Example Yearbook salesEven though orders and money are taken over many days, the book is typically delivered by the vendor to the campus on one day. The delivery date would be the day you designate as your tax-free day.Tax-free sales day cont.When multiple organizations hold a joint fundraiser, all organizations involved would be using one of their two tax-free days.Bona fide chapter:Group of students organized for an activity other than instructionRecognized by the schoolOrganized by electing officers and holding meetingsMay include whole grade levels (i.e. senior class) but may not be limited to specific classes (i.e. English, Biology, etc.)Other school groups if they are composed of students and school staff (i.e. science club, drama club, etc.)

Non-qualifying fundraisersWhen a school, student organization, PTA/PTO, booster club acts as a sales representative or commissioned sales agent for a for-profit retailer, the for-profit retailer is responsible for sales tax.As such, the sale cannot qualify for a tax-free sales day.The exception would be catalog and brochure sales of non-taxable items such as cookie dough, fruit, etc.This means the following fundraisers are not tax-free:Catalog and brochure sales of books, gift wrap, candy, candles and other novelty items.Taxable items The following items are taxable unless using a tax-free sales day:YearbooksAthletic programsT-shirtsUniformsNovelty items (i.e. bookmarks, photographs, pencils, etc.)Rental of tangible property (i.e. locks, calculators, musical instruments, etc.)Flowers and flower arrangements (plants and seeds are exempt)

Sponsor Acknowledgement FormIt is now a requirement that all Sponsors of student organizations that will be collecting money, conducting fundraisers or disbursing funds go through this training and sign a form indicating understanding of these District policies and procedures.The form may be obtained from your campus Secretary.The form should be submitted to your campus Secretary to maintain on file.

Questions If you have questions about any of the procedures or forms mentioned in this presentation, please talk with your campus Secretary.Any sales tax issues may be referred to Misty Brown, Accounting Coordinator, at ext 5776.