SPONSOR TRAINING

SPONSOR RESPONSIBILITIES

The Sponsor of each student organization is responsible for the proper administration of the organization’s funds.

These responsibilities include: Safekeeping of the organization’s funds Ensuring organization receipts and expenditures are handled

in accordance with District policies and procedures Oversight of organization fundraisers in compliance with

District policies and procedures

CASH RECEIPTS

A 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).

RECEIPTS

There are several forms of receipts that may be used. Select the form that is most appropriate and efficient. Individual Receipts Tabulation Receipt Form Ticket Receipt Form Product Receipt Form

INDIVIDUAL RECEIPTS Appropriate 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 FORM

Appropriate 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 TABU

LATION

RECEIPT FORM

TABULATION RECEIPT FORM

An 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 FORMS

Appropriate when selling product or issuing tickets. Calculates the amount you should’ve 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 PRO

DU

CT RECEIPT FORM

EXAMPLE TICKET RECEIPT FO

RM

SUBMITTING TO THE SECRETARY

All 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 Sponsor’s 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 Sponsor’s responsibility.

CASH DISBURSEMENTS

As 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.

FUNDRAISERS

All 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 designee’s) review.

By completing the financial information in the form, the Sponsor and organization are able to assess the success of the fundraiser.

FUN

DRAISER APPRO

VAL AND

RECAP FORM

EXAMPLE

FUNDRAISERS

Cash 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 TAX

In 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 ITEMS Food Sales

Food 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 organization’s fundraising drive and net proceeds go back to the organization for its exclusive use.

Concession stand sales if the sales part of an organization’s 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. Services

Admission tickets to amusement services provide by the school organization (i.e. school play, carnival, dance, athletic event, etc.)

Car washes Cosmetology services (products are taxable) Automobile repair (parts are taxable if charged separately)

Parking permits Fees/fines Advertising space Gift certificates and Passbooks Magazine subscriptions for six months or more Rental of real property (i.e. gym, auditorium, etc.)

TAX-FREE SALES DAY

School 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 sales

Even 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

instruction Recognized by the school Organized by electing officers and holding meetings May 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 FUNDRAISERS

When 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: Yearbooks Athletic programs T-shirts Uniforms Novelty 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 FORM

It 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.