RUSDAssociated Student Body

Training

Presented by:David Ostermann, Chief Business OfficialTina Tuning, Fiscal Services ManagerDawn Postoskie, Senior Accountant

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PurposeThe purpose of this presentation is to review the laws and

guidelines as it relates to student fees, deposits, donations and fundraising as well as what is and is not

allowable.

With the recent out-of-court settlement, new legislation and new upcoming audit guidelines, it is more important

than ever to make sure you are in compliance.

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Introduction to Current IssuesCharging students for fees and course materials, and requiring

donations & fundraising for activities is once again at the forefront of public attention.

Began with a Grand Jury investigation at San Diego Unified School District

Grand Jury report grabbed the attention of the ACLU who launched their own investigation

Requested public documents from Districts throughout the State

Investigation prompted a lawsuit against the Governor and the State of California

December 9, 2010, settled out of court3

Basis of LawsuitACLU lawsuit alleged that the State was failing to monitor

and prevent school districts from charging fees to students in violation of the “free school guarantee”

The “free school guarantee” is a provision in the California Constitution that has been upheld throughout the years in documented court cases

Add fees prohibition to the uniform complaint process in EC 35186 and to classroom posters• Must “fully reimburse all affected pupils, parents,

or guardians with interest.”• Withhold 1% of District administrative costs

funding for Districts that won’t comply4

ASB & Booster SupportWhere would we be without the support?

• Our clubs would be a lot smaller• We may not have football, tennis, baseball

We need to support each other…for the kids

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What is Associated Student Body?

Group of CA School Students Who:Raise Money For Student ActivitiesMake Decisions On How Money Is SpentParticipate in Co- and Extra- Curricular ActivitiesLearn Good Business Practices

Authorized by Education Code and School BoardOversight By School Employees and District Office

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Who is Involved in ASB?State of CaliforniaGoverning BoardSuperintendentBusiness Office StaffPrincipalBookkeeper/SecretaryStudent Body/Club AdvisorsStudent CouncilStudentsAuditorsFood Service Director

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Who is NOT Involved in ASB?

Boosters Club and Other Parent-Teacher AssociationsNot Legally Part of School or DistrictNot Included with Annual AuditSeparate Tax-Payer I.D. numberFunds are Not Controlled by Students or

PrincipalMay NOT Use ASB AccountsBoard Approval Required to Fundraise on

Campus8

BoostersBoosters are support organizationsClubs and sports belong to the schoolMust adhere to the “free school guarantee”Cannot mandate fees or membership in order to playEquipment and uniforms should be purchased by school

or ASB and Booster reimburseNo question of ownershipSafety precautionsDistrict standards

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Permissible FeesFees specifically authorized by law;Charges for optional attendance as a spectator at a school or

district sponsored activity Insurance for field trips Charges for parking of vehicles on school grounds (Vehicle

Code Charges for the rental or lease of personal property needed

for District purposes, such as caps and gowns for graduation ceremonies

Deposits for band instruments, music, uniforms taken on excursions to foreign countries

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Permissible Fees Cont.Fees specifically authorized by law;Fees for field trips and excursions in connection with

courses of instruction or school-related social, educational, cultural, athletic, or school band activities No student can be denied the opportunity to participate

due to a lack of sufficient fundsFund raise for group as a wholeFund raise assuming no one will have sufficient fundsCoordinate efforts of community service groups to supply

funds for pupils in needWaiver process not allowed

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Permissible Fees Cont.Fees specifically authorized by law;Charges for medical and accident insurance for athletic

team members as long as there is a waiver for financial hardship (EC § 32221)

Fees CANNOT be tracked by individual accounts

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Permissible Fees Cont.Education Codes outline permissible fees as follows;Physical Education Clothes

Charges for standardized physical education attire of a particular color and design

School may not mandate that the attire be purchased from the school

“No grade of a pupil participating in a physical education class may be adversely affected due to the fact that the pupil does not wear standardized physical education apparel where the failure…arises from circumstances beyond the control of the pupil.” (EC § 49066)

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Permissible ActionsFundraising

As long as it is not required for participationASB CardsEntertainment/DancesPublicationsAdvertisingStudent StoresCultural EventsLimited Food SalesCar Washes

Book FairsSpirit Packs* Jog-a-ThonsLift-a-ThonsScripTeam/Group SponsorshipsDiscount Cards to Local

BusinessesSilent Auctions

* Must state any tax deductible portion of purchase. Should not include required uniform pieces.

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Permissible ActionsDonations

As long as it is not required for participationDonations must be completely voluntaryDonation or “begging” letters

Do not include “set” donation amountState total cost to run program each year

Do not include cost per individual – implies a cost for the student to participate

Request for team sponsorsDonation letter example

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Non-Permissible FeesCalifornia public and charter schools cannot charge students

a fee to participate in any curricular or extracurricular activity This includes;

Security deposits for locks, lockers, uniforms, and instruments

Participation fees for classes, athletic programs, and clubs Instructional supplies – “No school official shall require

any pupil, except pupils in classes for adults, to purchase instructional material for the pupils’ use in the school.” EC 60010 defines instructional supplies and basic instructional

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Non-Permissible ActionsMandating fees, donations, or requiring students to fundraise

as a condition for participationCannot set fundraising quotaMust be voluntary

Excluding, “punishing,” or singling out students due to lack of funds or fundraising participation

Stating a required “donation” amountIndicating set donation is “not required” does not make

inclusion allowableTracking individual fundraising activity in individual accounts

Fundraising must be done for the group as a whole

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Non-Permissible Actions Cont.Stay away from “individual” references in

letters/flyersCANNOT have “opportunity” drawings or raffles

Only 501(c)(3)Must be registered to do so with State

CANNOT require uniform purchaseUniforms must be supplied Cheer & Band included

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FAQ #1Question: Why must I complete all the required paperwork

prior to a fund-raiser?

Answer: All fund-raisers must be properly documented to ensure internal controls, which are designed to protect all the people involved in the fund-raiser and the assets (money and goods); another reason is to provide an adequate audit trail.

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FAQ #2Question: Are schools allowed to fundraise?

Answer: YES. School districts, schools, and programs are allowed to participate in fundraising activities. However, participation in the activity must be strictly voluntary and in no way may a student be excluded from participation on a team or club or punished for not participating in the fundraising activity. Also, no quotas may be established for the fundraising activity (e.g. you must sell 50 coupon books).

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FAQ #3Question: May a school charge fees for uniforms for team

sports?

Answer: NO. The uniform is a required item and must be provided free of charge to the student member. Students are allowed to purchase their own uniforms if they wish to keep them, but purchasing a uniform cannot be a requirement for participation on the team. This must be made very clear.

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FAQ #4Question: Can we charge for cleaning uniforms?

Answer: No, that is considered reconditioning and must be the responsibility of whomever supplies the uniform.

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FAQ #5Question: Are schools allowed to sell Spirit Packs?

Answer: Yes, Spirit Packs may be sold. However, students cannot be required to purchase one in order to participate in a sport. Any required items must be provided free of charge to the student member. Furthermore, if the Spirit Packs are being used as a fundraiser, the tax deductible portion of the purchase must be stated (e.g. Cost of goods with average mark-up equals $50.00 and Spirit Pack is sold for $100.00. The tax deductible amount would be $50.00).

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FAQ #6Question: Can we charge students athletes for insurance if

they do not have their own?

Answer: Yes, you can charge for insurance, but there must be a waiver process in place to provide the insurance if the student cannot afford it.

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FAQ #7Question: May students be required to pay dues for

student clubs that are part of national organizations?

Answer: No, not as a condition of membership in a student club at the school level. If the school is part of a national organization that collects dues, the students should be advised to pay the national organization directly. However, membership in the national organization cannot be a requirement for membership in the school club.

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FAQ #8Question: May a school accept donations from parents and

guardians?

Answer: Yes, as long as the donation is strictly voluntary and is not a requirement for participation in the program or activity. Any statement or explanation that would lead a reasonable person to believe that the donation is required or is really not voluntary must be avoided. Also avoid individual cost per student references. This implies there is a cost per student to participate.

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FAQ #9

Question: Why do I have to get approval for every purchase in advance?

Answer: State law requires that all student body expenses (purchases) be pre-approved by (student representative, Principal and ASB Advisor. Good business practices also require this pre-approval to ensure that the purchase is allowable and that sufficient funds are available.

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The ASB Manual – Available on FCMAT Web Page

Comprehensive GuideBased on Laws/RegsGood Business PracticesSound Internal ControlsPractical InformationSample Forms & ProceduresBasis for Board PolicyGuide to SchoolDistrict StaffBasis for OversightGuide for Annual Trainingwww.fcmat.org

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Questions?

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