“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
Transcript
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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
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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.
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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
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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
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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
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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.
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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
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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.
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5. The importance of understanding the Principals Discretionary
Fund. Principals Discretionary is a fund from outside donations
that specifies that the money is to be used for the principals
discretion. This fund can only be used for the benefit of the
school and the students. Principals Discretionary is a fund from
outside donations that specifies that the money is to be used for
the principals 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.
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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.
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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.
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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 clerks 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
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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
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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
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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
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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.
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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.
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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.
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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.
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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
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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.
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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
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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).
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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
hour after the school day or 3) the sale takes place at a
school-sponsored event after the school day.
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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
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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.
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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 organizations bank accounts
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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 clubs funds and accounts shall
be kept completely separate from Associated Student Body
accounts.
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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 activitys 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.
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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.
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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.
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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 -
[email protected]@sandi.net Ines Abitria-
[email protected]@sandi.net Jaime Buensuceso -
[email protected]@sandi.net