asb finance/law for cheer coaches how to stay out of trouble with the auditor. dr. william...
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ASB Finance/Law for Cheer Coaches
How to stay out of trouble
with the auditor.Dr. William Wadlington
Superintendent Principal ASB Advisor
A.W.S.L. Summer Cheerleadership Camp
5-P’s
PRIOR
PREPARATION
PREVENTS
PRESENT
PROBLEMS
Fundraising Credo
Budget
Permission
Authorization
Controls
Reporting
Accountability
Associated Student Body FundsHave you checked that…
All the minutes of student meetings were available for inspection?
Students and staff were involved in preparing the ASB budget?
The ASB budget was submitted and approved by school district directors?
ASB fund raising activities (types) were submitted and approved by the School Board?
Procedures have been established to have all collected funds deposited intact?
All disbursements have students approval?
ASB records are maintained for at least six years, and some forever?
Your ASB constitution was current?
Your parent support groups were in compliance with Washington State law?
Your key staff have trained in ASB Law, Rules, & regulations procedures?
BudgetDO
• Each ASB entity have an approved annual budget.
• Each budget have capacity to meet the needs of the group.
• Clear procedure for a budget extension request.
DON’T• Perform one
fundraising activity without a valid and approved budget.
• Modify a budget without performing a budget extension process.
PermissionA fundraising activity must have permission from:
Officer and advisor of sponsoring group
Primary ASB advisor and/or ASB executive
Principal
A.S.B. Bookkeeper
AuthorizationThe following must authorize fundraising activities:
Group membership by vote ( in minutes).
A.S.B. by vote (in minutes).
A.S.B. Treasurer (by signature)
A.S.B. Bookkeeper (by signature)
Primary A.S.B. Advisor/Principal (signature)
Note: School Board authorizes by approving the annual budget and identifying their designee.
Controls
• Fiscal Controls – Cash Boxes – Reconciliation and Safeguarding
• Inventory Control– Management
• Supervision Control– Security and Supervision
Reporting
• Report to group membership (in minutes)
• Report to A.S.B. Council (in minutes)
• Report to Primary Advisor/Principal
Accountability
• Keep all records.
• Perform an annual report as part of the budgeting process for the next budget.
• Perform an A.S.B. Fundraising Profit Analysis
• Perform a Project/Activity Evaluation
DO• Check your district policy regarding formal
purchase orders requirements for Student Body expenditures.
• Double check the rules about raffles.
• Use the budget process to teach good accounting principles.
• Get student approval for all Student Body purchases.
DON’T• Forget that a Principal/Advisor can overrule
a student authorized purchase.
• Make major purchases without referring to the state bid law.
• Deposit money in separate savings or checking accounts at a local bank.
• Pay for services with cash.
Check• School district policies in place for ASB
funds.
• Students and staff involved in preparing ASB budget.
• ASB budget submitted and approved by school district directors.
• Procedures are established to have all collected funds be deposited intact.
Top10 Rules which explain ASB Funding, Finance, Law, Rules and Regulations
1. Public money, generated by the students or in the name of students, may be used only for Cultural, Athletic, Recreational, or Social, purposes, which are optional, and non-credit.
2. Money raised during the school day, and/or on school property, and/or using school personnel, and/or school materials is public money.
3. ASB funds are restricted and cannot be used for curricular purposes.
4. Co-curricular is not a legal term. Only curricular and extra- curricular are defined in the law.
5. Public money cannot be given away for private use.
Top10 Rules which explain ASB Funding, Finance, Law, Rules and Regulations
6. Students and staff must collaborate on the generation and use of public money.
7. You must have a system to monitor and protect the use of public money.
8. You must follow the federal, state, school board, and your own rules about ASB.
9. In a corporate sense, the Principal is the CEO and CFO; the school board is the Board of Directors.
10. The State Auditor is only one of many regulatory agencies interested in ASB.
Current Issues - Clothing
• Uniforms and other clothing items that have an intrinsic value that is greater than the nominal value may be eligible as awards to participants for successfully completing a season or term.
• Make sure that school board policy allows this practice, and that student officers approve the action.
Current Issues - Fundraising
• All fundraising in the name of a group is A.S.B. monies.
If it quacks like a duck and walks like a duck
- - - - - - It IS a duck!
• Follow the Fundraising Credo
Fundraising Credo
Budget
Permission
Authorization
Controls
Reporting
Accountability
Current Issues – Parent Support Groups
• Current Organizational By-Laws• Business License (if retail sales
are held)• Parent Organization Rules• Articles of Incorporation with
Secretary of State Stamp• Current List of Officers• IRS Tax Exempt Letter and/or
Tax Determination Letter• IRS Tax Identification # (EIN) • Washington State UBI #
• Certificate of Insurance• Inventory or Equipment• Recent copies of income tax
report• Annual renewal of Secretary of
State registration• List of Bank accounts• Current List of Bank authorized
signers• School Board approval• Any other agreements• Health cards (if food is sold)
Check List
Final Thought
Expect the Auditor to Stress accountability over accounting
How are public monies being raised and spent in students’
best interest?
Questions?
• Check with your business office.
• WASBO 206-368-4706
• Gambling Commission 360-438-7654
• WA State Auditor 360-586-4692
• AWSP 360-357-7951 • WIAA 425-746-7102
Resources• http://www.wiaa.com/
– (look under Affiliates, then Student Councils)
• Martin E. Fortin, Jr. AWSP/Cispus Learning Center
2142 Cispus Road Randle, Washington 98377-9305 (360) 497-7131 · Fax (360) 497-7132
• Bill Wadlington, Superintendent/PrincipalCreston High School485 Southeast E StreetCreston, WA 99117(509) 636-2721 · Fax (509) [email protected]