Booster-PTO-PTA Accounting and Operations

Booster Clubs/parent organizations are integral parts in supporting and strengthening the programs and student groups of Robbinsdale Area Schools.

Students are afforded many unique opportunities to showcase talents and skills as a result of the support made available from the dedication of these volunteer organizations. On behalf of the students, faculty and administration we want to express our appreciation and gratitude. Thank you!

In order to keep booster club /parent organizations informed, the following guidelines have been established. The guidelines are meant
to assist all organizations in staying in compliance with applicable Federal/State laws and local school district policies.

Separate Entities

Booster Clubs, Parent-Teacher-Student Organizations (PTO) and Parent-Teacher Associations (PTA) are separate entities from the school district. They are typically formed as non-profit organizations. As such, these organizations will:

Have their own governing board
Maintain their own set of financial statements and accounting records
Have a separate checking account
Maintain their own federal tax identification number

The school and/or district are not liable or responsible for any contracts entered into or expenditures made by Booster Club or Parent Teacher Organization. School sponsored event contracts must be processed through the principal office of the school. The school office
will then forward them onto the Business Office for signature.

Example School Sponsored Event: Prom
Example of Non-School Sponsored Event: Senior Party

Financial / Accounting Guidelines

Each organization should retain information regarding it’s financial activity. This information includes:

Recording of all organization receipts, the amount and the source
Recording of all organization expenditures by purpose and payee
Expenditures must be for items deemed necessary for the organization’s fund raising activities and for the management of the organization. School district related expenses must be sent to the district as donations and accepted by the School Board through the gift policy. This is coordinated through the Principal Office or Athletic Office. Examples: Daily planners, playground equipment, uniforms, bus transportation for field trips, etc.
Beginning and ending checking account balances

Expenses

Checks should be endorsed by at least two members of the organization
School district employees must not have complete financial control of the organization or be a signor on the account
The organizations check book should not be housed on school district property. Organization cannot use the tax exempt status of the school district.
Suggestion - President is mailed the bank statement to review and pass onto the Treasurer to balance and create a report to be approved by the organization.

Other Guidelines / Resources

Insurance

Robbinsdale School District carries insurance to cover many different kinds of risks. Coverage’s include property, crime, auto and liability.

If an activity is a school sponsored event the district has coverage, Example: Senior Prom
If an activity is a non-school sponsored event, the organization running the function should have a separate policy to protect the organization and its members. Example: Senior Party

If the organization is a 501c3 organization it’s elected positions are not covered under the district’s policy. State statute requires minimum property and liability coverage at 1.5 million.

District Gift Policy

It is the policy of ISD# 281, that all gifts, bequests and donations received by the district, shall be formally presented and if accepted by the school board, shall then be applied to the purpose or purposes specified by the donor. Equipment becomes the property of the School District. The school board will not place a value on non-monetary gifts.

Travel / Field Trips

School sponsored trips generally require the use of school-provided vehicles, such as buses or passenger vans. These vehicles are
operated by school employees or contractors. All district drivers are subject to MVR background checks and district insurance coverage is extended to these drivers.

School District staff cannot arrange car-pooling for liability reasons (i.e. background checks; minimal insurance coverage). The District is not responsible for transportation to non-school sponsored events.

Purchasing

In certain instances an organization will purchase services or supplies from the district. If applicable the district will send the
organization an invoice for these services or supplies. Example: Publications Department. Current District purchasing contracts will be honored in all transactions with an organization. Example: Purchase of Uniforms, Playground Equipment, etc.

Currently the School District has a contract with Coca-Cola. All soft drink purchases must be a Coke product and purchased through the Coke distributor. Please consult the Activities Director at your school.

Facility Use

Please see the Facility Use page on our website for more information.

To determine appropriate procedure to request use of school facilities, call the school secretary and explain your needs. The school
secretary will determine whether the request will be scheduled by the school building or be referred to the facilities scheduler, Jennifer
Bridgeman. Ms. Bridgeman can be contacted at 763-504-4917 or Jennifer_Bridgeman@rdale.org. Charges for Custodians or Nutrition Services employees may apply.

Use of District Kitchens

Carnivals, Pancake Breakfasts, Spaghetti Dinners or any function that invites the public requires that an Itinerant license be applied
for through Hennepin County. A link to the form is listed on the facilities page. Any alternative cooking equipment or setup such as griddles requires approval from the Fire Marshall.

Storage of food from organizations other than Nutrition Services is not allowed per MN food code. Nutrition Services does work with
school events such as carnivals, all school parties, etc. for storage of food on the day of the event. All food must be removed at the end of the event. Cooking on district property is allowed only for district-sponsored events.

Bake sale items should list all allergens in the product. District insurance does not cover bake sale products.

Accounting and Operations Manual for Booster Clubs, PTO and PTA

Introduction

Booster Clubs and Parent-Teacher Organizations or Associations are organizations that are separate entities from the school district. As such, they have their own federal tax identification number, independent governing board, establish their own policies and maintain their own set of accounting records. They also maintain a separate checking account. For fundraising purposes, these organizations are formed as non-profit entities which must be registered and follow federal and state regulations to maintain their exemption statuses. These organizations MUST NOT take advantage of or use the District’s tax identification number.

These valuable organizations provide a needed source of financial support for school activities. However, a separation between these organizations and the school district must be maintained so that third parties are not misled into believing that the organization is part of the school district. It is imperative that strict and proper accounting practices are followed in order to ensure this separation.

Outside Organizations - Booster Clubs/PTO/PTA

These organizations are created by interested adult groups and managed by adults with various adults as officers. They raise funds through fundraising events, dues payments from adult members or from contributions from other organizations. They may operate concessions at special events and other projects on school property with student help with prior board approval. In all cases, adults implement, monitor and control the activities. The adult members of the organization make the decisions.

Required Notification to the District

The names of the organizations’ officers and contact information including: home and email addresses and current phone number should be submitted to the school office at the beginning of each school year and/or when there is a change in the officers
Name of financial institution where the organization maintains its checking account
Names and contact information of the organization’s check signers

Affiliation Requirements

The following guidelines ensure a great working partnership between the district and the booster clubs, PTA, and PTO organizations

The organization’s income must not be from students. Collecting dues or other fees from students makes the organization resemble a district sanctioned student organization
Organizations running non-school sponsored events should have separate insurance policies to protect the organization and its members
Use of district kitchens will be made in coordination with the Child Nutrition department to ensure compliance with the Minnesota food code and Hennepin County licensing protocols
Use of district facilities will be made in coordination with the school secretary where the event will be held. Please note that certain requests may be referred to the facilities scheduler

Recommended Procedures

The following management and accounting guidelines are recommended for booster clubs and parent-teacher organizations or associations

Information regarding the financial activities of the organization should be maintained in an organized and easily accessible format. This information should include receipts, the source of the receipts, expenditures including the payee’s information and description of the purchase or service provided, and beginning and ending balances.
Expenditures must be deemed necessary for the organization’s fundraising activities and for the management of the organization. No district related expenses may be purchased or paid for directly by these organizations. The district will make direct purchase and receive donations for the purchase from the organization wishing to subsidize the expenditure. Expenditures for school district equipment, stipends for district employees, coaches’ wages, field trips, carnival equipment rentals, payments for bus trips are examples of expenditures that must not be directly made by these organizations.
Checks should be endorsed by at least two members of the organization. While school district employees may be members of these organizations, they must not be signors on PTA/PTO/Booster Club bank accounts. The organizations’ checkbooks or funds must not be housed on school district property nor should it be in the possession of a district employee
Whenever it is practical, the organization should establish a separation of duties as a mechanism of supporting its officers. This separation may entail the following:
1. A designated officer, other than the treasurer should initial and sign each invoice or request for payment
2. The bank statement should be mailed to the president of the organization and passed on to the treasurer to reconcile and create reports for the membership or leadership team
3. All fundraising activities and donations should be approved by the membership or leadership team
The treasurer or bookkeeper should prepare an annual financial report for the membership. This report should include the beginning and ending balances of the organization’s accounts, the ending checking account and investment balances, the total amount of receipts by payer, a list of payments by vendor, with the amounts and purpose of the expenditure
Should the organization hire its own employees or contract for outside services, the organization is responsible for the filing of the applicable year end forms including W-2 or 1099 forms. Under no circumstance should the organization directly contract or make payments for services to district employees. To do so skirts tax obligations, the district’s contract approval procedure, and the organization’s due diligence responsibilities.
The organizations should consult with a CPA firm familiar with non-profit entities’ reporting requirements to ensure compliance with federal and state reporting requirements. This allows the organization to maintain its tax exempt status and protects its officers and members from liabilities.

The district offers the guidelines and recommendations presented above as an avenue to support organization’s management. Each organization may have other procedures in addition to those outlined above. We welcome your comments, questions, or feedback in our pursuit of a strong partnership for the benefit of our learners.

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