ACCOUNTABILITY AND OVERSIGHT OF FUNDRAISER AND CROWDFUNDING DISBURSEMENTS | Policy Manual

6608 - ACCOUNTABILITY AND OVERSIGHT OF FUNDRAISER AND CROWDFUNDING DISBURSEMENTS

The Board recognizes that the proper accounting, oversight, and transparency of all disbursements from fundraisers and crowdfunding campaigns organized by students or parent groups for the purpose of providing benefit to the District’s programming or facilities must be in alignment with applicable Federal and State accounting standards. Proper documentation and reporting are essential for compliance with the Governmental Accounting Standards Board Statement No. 84 (GASB 84) and Federal reporting requirements

Fundraisers and crowdfunding campaigns conducted and organized by students, parent groups, and other private entities shall meet the compliance, accounting, and reporting requirements established herein. Parent groups may include Parent Teacher Associations (PTAs), Parent Teacher Organizations (PTOs), Educational Foundations, Booster clubs, and/or other private entities established for the benefit of the District, school, or a school organization. (See also Policy 5830 – Student Fundraising, Policy 9211 – District Support Organizations)

Definitions

For purposes of this policy, the following terms shall be defined as:

Custodial Funds: Funds held and managed by the school district for student activities under GASB 84.

Noncustodial Funds: Funds raised and managed independently by parent groups or private organizations.

F-33 Federal Financial Form Line 19: The line on the annual, mandated federal report that is required to detail the “Contributions and Donations From Private Sources,” which includes revenue associated with private donations, stipends, or on-behalf payments through fundraising activities. (Financial Accounting for Local and State School Systems: 2014 Edition)

Accounting and Compliance Requirements – Custodial Funds

Student-Organized Fundraising

Funds raised by students whose funds are managed by the District are classified as custodial funds. All funds collected must be deposited into the District’s custodial accounts and proper accounting and General Ledger code attribution is recommended.

Disbursements from the custodial accounts must be properly documented with receipts and expenditure records.

As defined in the Financial Accounting for Local and State School Systems: 2014 Edition all revenues and expenditures from student fundraising must be included on the F-33 Federal Financial Report. This data is collected through the District's Annual Report to the Department of Public Instruction (DPI).
Parent Group-Organized Fundraising (Non-Custodial Funds)

Funds raised by parent groups and/or other private individuals are considered non-custodial funds under GASB 84.

Any disbursements to the school or District must follow the established procedures for gifts to the District. (See also Policy 7230 – Gifts, Grants & Bequests)

District Oversight

All reports shall be available for the Finance Manager to review, approve, implement appropriate financial controls and maintain necessary record-keeping.

Disbursements that include payments on behalf of the school district (e.g., purchase of equipment) must also be properly categorized in required annual reporting.

Failure to comply with this policy may result in suspension or restrictions to fundraising activities of a student group, foundation, parent organization, and/or other private entity. Improper reporting will result in additional audits or financial reviews of the offending organizations financial records. The District Administrator may impose other corrective actions that are necessary and appropriate to protect the integrity of the Board’s financial operations and to meet the financial reporting standards.