Avery Embry Chief School Financial Officer, Talladega County Schools And Julie Chaffin Chief School Financial Officer, Fayette County Schools

Transcription

1 Avery Embry Chief School Financial Officer, Talladega County Schools And Julie Chaffin Chief School Financial Officer, Fayette County Schools May 8, 2014

2 Discussion of actual case of Embezzlement at Fayette County Schools

3 1. The organization has obtained an employer identification number from the IRS. 2. The organization provides a report of the annual audit of the organization to the school. Audit guidelines may be obtained from Julie Chaffin, Chief School Financial Officer. 3. The organization makes its financial records available to the school s auditor and authorized school employee upon request. 4. The organization provides required financial reports. 5. The organization provides proof of a fidelity bond for the treasurer. 6. The organization will not provide any payment or benefit to a school employee (or family member of a school employee) in violation of the State Ethics law.

4 7. All Money from an activity must be deposited into a school account if: a. An organization that has school employees associated with the activity supported by the booster organization, and that employee serves/holds a leadership position in the organization. b. An organization that has school employees lead fund-raising activities or maintains the accounting records for the organization. c. An organization or school that operates a training camp that includes students or uses school facilities. d. An organization or school that operates an exhibition or competition that includes students of the activity it supports.

5 8. Commissions and/or splits can be paid to organizations for their volunteer services at events, however all money from an activity must be deposited into a school account. Our recommendation is a 50% split between the booster organization and a school account. The following are common activities affected by this provision: a. Operating a concession stand at a school sponsored event or event on school property. b. Collecting parking fees at a school event or on school property. 9. Listed below are further examples of what type of activities are allowable or not allowable for school related organizations: a. Employees can not accept direct payment from a booster organization. If the booster organization wants to pay an employee for their service, it must be paid to the school.

6 b. Employees (coaches) can not be paid directly from summer camp fees. Coaches can receive money for their work, however it must be paid to the school. c. Fund raising activities that involve an element of chance (i.e. raffle or drawing) are not allowable on school facilities nor can school employees be involved in any manner. d. School employees can not be paid for working in concession areas. e. All gate receipts are school money and are to be deposited into a school account. f. Season passes are not allowable, unless they are for full value or more of the ticket prices. 10. Alabama State Ethics laws apply to everyone and all personnel and organizations must be in compliance.

7 Booster Clubs and Parent Organizations are encouraged to promote a positive relationship between the School and the Community. The primary purpose of these organizations is to assist and support the School in recognizing and promoting student activities. The Principal is responsible for maintaining close communication with such organizations to ensure the organization s goals and activities are in compliance with Board policies. The following criteria will be used by the Principal in determining if an organization will be permitted to operate as a Booster Club or Parent Organization. All such organizations must be approved annually by the Coordinator of Extracurricular Activities and Board of Education.

8 1. The form "Request for Certification of Parent Organization/Booster Club" must be completed and submitted to the Chief School Financial Officer by the first business day of August each year. Each form must be approved by the Coordinator of Extracurricular Activities and by the Board of Education at their next scheduled regular meeting. 2. The Organization must be managed or operated by adults, rather than students, and will file its By-Laws, Charter and/or Constitution with the Principal. These will clearly identify the organization as a Parent Organization or Booster Club separate from School District Student Organizations and will provide details of the structure of the organization including: Officers and their duties Election of officers and term limits Purpose and goals Dues structure, if any Intended use of funds generated by the organization Distribution of remaining funds upon termination of the organization

9 3. The Organization must include at least one representative from the School Faculty as a Liaison. 4. No Employee of the Board of Education shall serve as the Treasurer or Authorized Check Signer of any Booster Club or Parent Organization. 5. Students will not participate in fundraising during regular class periods. Participation in Extracurricular Activities cannot be dependent upon fundraising - No Student can be required to participate in fundraising. Talladega County Schools Board of Education Policy JK- Solicitation must be followed. 6. Use of School Property by the Organization for its activities will meet all regulations established by the Board. 7. All funds raised by the Organization will be used to achieve the stated purposes and goals of the organization. No Administrative Fees or Stipends to Officers or others will be permitted.

10 8. All Capital Outlay or Equipment Purchases equal to or in excess of $2,000 must be pre-approved by the School Principal, Chief School Financial Officer, and Coordinator of Extracurricular Activities. The Parent Organization/Booster Club Capital Outlay or Equipment Request form should be submitted to the Chief School Financial Officer, Talladega County Schools, P.O. Box 887, Talladega, AL Approval decision will be made and returned by mail within ten (10) business days. 9. The Organization must maintain Bank Records, Financial Records, and Tax Status separate from the School. The Organization will provide to the Principal, monthly or upon request, a complete set of Financial Records or detailed Treasurer's Report. A review of these records shall be conducted under the direction of the Principal. Based on the results of this review, additional procedures may be conducted.

11 10. In no manner will Board-Sanctioning of an Organization preclude the Organization from Compliance with State and Federal Laws as they pertain to Equal Opportunity and Treatment of all Students. Gifts of services provided to the School shall comply with Title IX, Education Amendment of 1972, 20 U.S.C., 1681, et. seq A fundraising activity is considered to be any activity that is intended to generate a profit, through commercial solicitation of sale of products or services to the general public at large. Activities that are conducted as "community building" or "parent involvement" that also may generate a profit are NOT considered fundraising activities, e.g., school bake sales, walk-a-thons, fall festivals, in-school ballgames, concession sales, dances, etc. Fundraising activities considered commercial solicitation as defined above must have the approval of the Principal and the Coordinator of Extracurricular Activities.

12 Activities considered "community building" or "parent involvement" as defined above must have the approval of the Principal only. No Student shall participate in door-to-door sales for any kind of activity. 12. Parent Organization and Booster Clubs shall indemnify, defend, and hold Talladega County Board of Education, its Employees, and its Schools, harmless to the extent permitted by applicable law from and against any and all claims, actions, proceedings, costs, damages, losses, liabilities, and expenses (including attorney's fees and costs) arising out of or in connection with: (a) Parent Organization and Booster Club's use of Talladega County Schools' facilities; and/or (b) Parent Organization and Booster Club's operations in support of Talladega County Schools. 13. The Board reserves the right to revoke the sanctioning of any organization if it is found that the organization's operations and purpose are not consistent with the policies adopted by the Board. Legal References: 1. Title IX, Education Amendment of 1972, 20 U.S.C. 1681, et. seq.

13 Request to Operate Parent Organization/Booster Clubs Outside the Control of the School School: Name of Organization/Club: Contact Person: Telephone: (h) (w) (c) IRS Employer Identification #: *Fidelity bond for treasurer is attached: Yes No I certify that the requirements: will adhere to the following Annual audit report will be submitted to the Chief School Financial Officer no later than April 30 of each year. Audit teams can be composed of organization members excluding officers. Financial records will be made available to the school s auditors and the school principal upon request. Proof of fidelity bond for the treasurer will be provided. No payment or benefit will be provided to any school employee in violation of the State Ethics Law. The law can be viewed at No purchases will be made in violation of Title IX. Parent Organization/Club President Date *Recommended amount for the fidelity bond is the largest balance anticipated during the current fiscal year.

14

15 September 11, 2012 Dear Supporters: A meeting has been scheduled to discuss operating procedures for all school-related organizations. It is necessary that you attend for the purpose of reviewing procedures and updating forms required for audit purposes. The schedule is as follows: North End of the County Lincoln Elementary Lincoln High Drew Middle Talladega County Central High Stemley Road Elementary Munford Elementary Munford Middle Munford High Schools on the North end of the County: Monday, October 1, 2012 at 5:30 PM Location: Lincoln High School Library South End of the County Watwood Elementary BB Comer Elementary BB Comer High Childersburg Elementary Childersburg Middle Childersburg High Fayetteville High Sycamore Elementary Winterboro High Schools on the South end of the County: Tuesday, October 2, 2012 at 5:30 PM Location: Winterboro High School Library Please bring the following documents with you for our files: Copy of the By-Laws for your organization Copy of the Federal Tax Identification Number Copy of the Treasury/Fidelity Bond Request to Operate Outside the Control of the School Attached Request for Certification of Parent Organization or Booster Club Attached Annual audit report for the school year Current bank statement (August 2012) I appreciate your continued support of the Talladega County Schools. Please confirm your attendance with Charlene Walton via cwalton@tcboe.org or by telephone Sincerely, Suzanne Lacey, Ed. D. Superintendent Attachments cc: Principals Avery Embry, Chief School Financial Officer

16 2012/2013 SCHOOL YEAR School: Organization: Request for Certification Form Outside of the School Form Copy of By-Laws Copy of Tax Identification Number Copy of Fidelity Bond Copy of Bank Statement Copy of Audit

17

18

19

20

21 BUDGET ABC Soccer Booster Club XYZ HIGH SCHOOL August 31, 2012 Revenues Budgeted Actual Concession Sales Candy Sales Fundraiser - Car Wash Sign Sales Donations Dues - $75/per player Total Revenues Expenses Advertising - Car Wash Bank Charges $5/Mo Banquet Decorations Banquet Food Bus Driver Car Wash Supplies Concession - Food Items Concession - Supplies Dues and Subscriptions Equipment - Soccer Balls Office Supplies Postage Transportation Trophies Uniforms Utilities - Power Other - list details Total Expenses Balance

22 REQUEST TO EXPEND FUNDS Date: Check # Amount: $ Person Requesting Funds: Funds Requested For: Budgeted Item: Yes No Authorizing Signature Attach Documentation President: Treasurer: Date: Date:

23 DATE: 1/1/2012 RECEIPT RECEIPT NUMBER 2001 RECEIVED OF: SUZIE SMITH AMOUNT RECEIVED: TWENTY-FIVE DOLLARS AND NO/ DOLLARS $ FOR: RECEIVED BY: CANDY SALES AMOUNT CHECK X $ ;7005 CASH X $15.00 Joan Jones

24 FINANCIAL STATEMENT ABC SCHOOL BAND BOOSTER CLUB 8/31/2012 BEGINNING BALANCE $ DEPOSITS DATE RECEIPT #'S DESCRIPTION AMOUNT 8/25/ BAND DUES $ /28/ '010 CANDY SALE $ $ CHECKS DATE CHECK # DATE APPROVED DESCRIPTION AMOUNT 8/30/ /1/2012 BAND DUES - STATE $ $ RECONCILED WITH BANK STATEMENT ENDING BALANCE $ TREASURER: Date PRESIDENT: Date

25 To apply for EIN # - go to top right in the search block type EIN application. All monies received should be receipted by the Treasurer. Receipts are never to be destroyed or changed. If a mistake is made, write VOID on both copies and keep originals in the receipt book. Receipts are to be issued only when money is received. Never write a receipt in advance. The person receipting the money must NEVER write a receipt to himself or herself. Deposits should be made the same day the money is received or the next day. It can always be dropped in the night deposit box. 2 Signatures are required on all checks. Request to Expend Funds This should be approved before any purchases are made. Be sure to record the check number on this request form once the purchase has been made and attach all receipts and supporting documentation.

26 Invoices should be paid in a timely manner. Provide proof of purchase detailed receipts, Request to Expend Funds should be attached. Purchases should never be made with a debit card or an EBT card. To keep clean bookkeeping you should never receive cash back when making a purchase. Try to keep a copy of all checks received. If you order material, it should not be delivered to the School. If a Booster Club makes a purchase, the School cannot/will not reimburse the Booster Club. If there is an agreement that the School and Booster will split the cost and it falls within the guidelines, the Booster Club must pay the school for their portion and the School will pay the invoice. The School will go through the proper channels to get a PO and order the material.

27 If a Booster Club has to pay for a Bus Driver/Sub and/or mileage, the Booster Club should make the check out to Talladega County Board of Education, not the School. Attach explanation/backup information of what the check is for. If you write a check out to cash for change cash then a separate deposit should be made in that same amount, i.e. $300 check written to cash for the change cash in the concession stand. At the end of the night, a $300 deposit should be written, returning the change cash to the account. Then make a deposit for the remainder. Q Why should we have to provide you with all this information when we are working outside of the School? A Due to fraudulent activity, the State developed guidelines that are designed to protect all parties involved.

28

29