The World of Activity Funds
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- Oswald Pope
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1 The World of Activity Funds 1
2 Agenda Ø Mission /Purpose Ø Similarities & Differences Ø Student Activity Funds Ø Campus Activity Funds Ø Fund- Raisers Ø Sales Tax 2
3 Mission/Purpose Student and Campus Activity Purposes Ø Student Activity Purpose is for collecting and raising funds for the direct benefit of the Students or the direct benefit of the School and is managed by student groups Ø Campus Activity Purpose is to raise funds to support school wide needs and managed by Campus Administrator (Principal) 3
4 Similarities & Differences Student Activity Funds Fund 876 Campus Activity Funds Fund 461 Integral Part of the District Financial Info Included in CAFR Separate Bank Account Used Agency Accounts Students In- Charge Sponsor works with group and Funds should directly benefit the students Must have good money handling procedures Fund- Raisers District Policies No Raffles Integral Part of the District Financial Info Included in CAFR District Bank Account Used Agency accounts Administration In- Charge No Sponsors and Funds should benefit the whole student body Must have good money handling procedures Fund- Raisers District Policies No Raffles 4
5 Similarities & Differences Student Activity Funds Composed of Student Clubs Monthly Reconciliations done by Bookkeeper Sales Tax - Paid through District - Two One- Day Tax- Free Sales Day Internal Audit Fund- Raisers - District Policies Local Process Checks and must have Check Approval Form Campus Activity Funds Expenses Paid by Principal s Account Reconciliation done by Financial Management Department Sales Tax - Paid through District - Two One- Day Tax- Free Sales Day Internal Audit Fund- Raisers - District Policies Accounts Payable and must prepare Purchase Orders 5
6 Student Activity Funds Ø Receipts should be issued for money received Ø Face- to- face counting of money Ø Cash in school buildings Responsible for following procedures for safe handling of money Safe / Vault must be locked Money must be secured in safe / vault Must be deposited daily, in excess of $100, regardless of amount once a week Ø Sunshine Club would be funded by voluntary donations from teachers and staff and no student money nor fundraisers should be deposited in this account 6
7 Campus Activity Funds Ø Operational Accounts (Principal s Acct) General Welfare of Student Body School- Wide Fund- Raisers Ø Close cash receipt batches daily Open and close one batch only in SAGE 7
8 Campus Activity Funds Ø Gift Cards Not allowable from any fund Ø Donations Must submit a Gifts and Bequests Form Ø Charity Principal s Accounts can not donate to a Charity Institution 8
9 Campus Activity Funds Ø T- Shirts for students only Allowed for safety (STAAR and TAKS Testing) The Top AR readers and Technology Expo Ø Attendance Rewards allowed Item(s) shall be provided to every student meeting perfect attendance, no random drawings Allowed: instructional items, bicycles, ipods, skateboards Parents and students must be informed of the criteria (include it in the welcome back letter) Plan and document the activity in the Campus Improvement Plan You may solicit donations for this specific use 9
10 How many fundraisers are allowed per year? Type Bona Fide Club Bona Fide Club (Proms) Campus Principal Library Booster Clubs, PTAs, PTOs Limitation Two per year Four per year: 7 th, 8 th, 11 th, 12th Four per year Two per year None 10
11 Examples of Allowable Fundraisers Ads Camp / Clinic Candles Car Wash Cookie Dough Concessions Entertainment Book Gift Wrap Magazines Plants Plate Sale Rummage Sale Silent Auction T- Shirts 11
12 Steps to Fundraising Ø Each club needs to be approved through workflow Justification of Bonafide Club Form. Due by September 30. Submit it to the Director of Elementary or Secondary Education. Ø Complete and submit the Activity Fundraiser Approval Form (Workflow)- Due at least 30 calendar days before fund-raiser to be held. Submit it to the Director of Elementary or Secondary Education. Approval is contingent upon submission of the Justification for Bona Fide Club and number of allowed fundraisers. Ø Complete and submit the Fundraiser Report - Complete within 10 working days of projected end date of fund-raiser to the bookkeeper or campus clerk. 12
13 13
14 14
15 Documenting Fundraisers 15
16 Documenting Fundraisers 16
17 Documenting Fundraisers 17
18 Documenting Fundraisers 18
19 Documenting Fundraisers 19
20 Documenting Fundraisers 20
21 Responsibilities of Faculty Sponsors of Student Groups By ini'aling this paragraph, I hereby request and instruct Laredo ISD to payroll deduct any money (or property purchased with student ac'vity money) which is lost due to carelessness, thea or fraud. 21
22 Fundraiser Vendors Ø Is the vendor an Approved Fundraiser Vendor? If not, request the vendor to submit applicable information to become an approved fundraiser vendor. If vendor is needed in SchoolBooks Web, it must be submitted to Alice Gonzalez. 22
23 One- Day Tax- Free Sales Days Ø Organizations exempt from sales tax are entitled to two (2) one- day tax- free sales days per calendar year not school year. Suggest holding one fund- raiser in the Spring and one in the Fall. Ø Sales of taxable items are taxable unless you use a one- day tax- free sales day. One- day is a 24 hour period of time. Ø Select the taxable fund- raisers (exclude catalog sales and book fairs) that involve the most money received (highest gross) not the largest profit. Ø Document which fund- raisers are your one- day tax- free sales days. 23
24 Sales & Use Tax- Exemption Ø Purchases are tax- exempt. Ø Items purchased for resale during a fundraising event should be made as non- taxable purchases from the vendor. Ø Sales tax must be collected on all sales / fundraisers unless they are determined to be non- taxable or have been declared as one of your tax- free sales days. Ø Two one- day tax- free sales days per calendar year are allowed. (For activity funds, must be recognized by school, elect officers & hold meetings to qualify for the two one- day tax- free sales days.) 24
25 Tax- Exempt Sales By law, these items are tax- exempt. Ads - Athletic Programs, School Newspapers, Posters, Yearbooks Admission - Athletic Events, Dances, Dance / Drama / Musical Performances, Summer Camps / Clinics, Workshops Catalog Sales of Tax- Exempt Items - Cookie Dough Discount / Entertainment Cards & Books Food that is not ready to eat - Cookie Dough / Frozen Pizzas Magazine Subscriptions for more than 6 Months Services - Car Wash, Cleaning Whole Cakes & Pies & Concession Stand Sales 25
26 Taxable Sales Auctions and Silent Auctions Calendars and Day Planners Candles Catalog Sales of Taxable Items - Gift Wrap Clothing including T- Shirts Flowers - Roses, Carnations, Arrangements Gift Wrap, Balloons, etc. 26
27 Taxable Sales Magazines - When Sold Individually Magazine Subscriptions - Sold for Less than 6 Months Plants - Holiday Greenery, Poinsettias, Floral Arrangements Rummage, Yard & Garage Sales School Store & Spirit Items Yard Signs 27
28 Catalog Sales Ø For catalog sales of taxable items and book fairs, you are considered an agent of the vendor. These fund- raisers are ALWAYS taxable. Ø As an agent of the vendor, you cannot use a one- day tax- free sales day. Ø Make sure that you and the vendor are in agreement on the handling of the sales tax. Ø Collect the sales tax and remit it to the vendor. The vendor will pay the sales tax to the Texas Comptroller s Office. 28
29 Sales Tax Included? Ø If you have a taxable sale, will sales tax be included in the sales price or will it be added to sales price? Ø For catalog sales and book fairs, easiest to have sales tax included in the price. Ø If sales tax is included in the sales price, must state on brochures or signs. 29
30 Unacceptable Deposit Slip 30
31 Acceptable Deposit Slip 31
32 Booster/PTO Clubs are subject to provide their Financial Information/ Financial Report by September 5, 2013 to the Sponsor, the School Principal and Division of Finance Deadlines Student Activity Clubs need to submit their Club Formation Approval Form, Justification of Bona Fide Club Form and Club s Constitutional/By- Laws to their Campus Bookkeeper by no later than September 30, 2013 Bank Reconciliations are to be submitted every 15 th of each month
33 Questions For additional information: Ms. Lourdes Lulu Dilley Campus/Student Activity Accountant Ms. Alicia Rico- Gonzalez Campus/Student Activity Tech Ms. Leticia Gamino Accounting Tech
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