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This model policy was developed by Parent Booster USA, Inc. (PBUSA) to assist schools, school districts and their respective administrators to understand best practices for working with school support organizations.
Schools in this school district must maintain clear roles distinct from the roles of the organizations that provide support to the schools. Each school must manage its own activities in accordance with school policy and state law, including without limitation collecting student fees for classes and school-conducted extracurricular activities and contracting for and purchasing items to be owned and used by the school. School support organizations act as grant-making organizations responding to requests from schools/school staff for support needed (volunteers and funds) that is not provided in the ordinary operating budget. At no time, however, should school support organizations act as an agent of the school to collect student fees for classes and other school activities, determine or provide waivers of such fees, or engage in other activities as an agent of the school.
Schools within this school district may cooperate with, including providing use of school facilities for meetings and activities, and accept funds from school support organizations (i.e. parent-teacher-student organizations, sports, arts, academic and other booster clubs) provided the school support organization meets the following requirements:
The monthly treasurer’s reports shall be compiled and kept in the organization’s records for three (3) years. The year-end treasurer’s report shall be kept permanently. Bank statements, canceled checks, check registers, invoices, receipts, cash tally sheets, investment statements, and related documents should be kept for seven (7) years.
School support organizations (booster clubs) should conduct a financial review of the organization’s financial practices each year. This review is intended to ensure that appropriate financial policies are in place, and that each organization is following these policies.
Step #1: Gather financial documents including:
Copies of all written financial policies
Copies of treasurer’s reports for the year (or other period) to be reviewed
List of all bank and investment accounts, including names of persons authorized to sign on each account
Copies of all bank and other financial statements for the period to be reviewed
Copies of all bank and investment account reconciliations for the period to be reviewed
Cash tally sheets
Cash receipts journal
Invoices, receipts and other documents
Documentation of any restrictions on the use of any particular funds or donor gifts
IRS letter documents including most recent Form 990, IRS letter recognizing tax-exempt status, and IRS letter assigning an EIN (employer identification number) to the organization.
Step #2: Review financial documents and processes:
Step #3: Review income and receipts
Step #4: Review disbursements
Step #5: Tax/information returns
Step #6: Review financial control systems
Step #7: Review reporting systems to ensure adequate information is provided for the organization and its officers/directors to make reasonable decisions.
Step #8: Write a report
The financial review/audit report should document at a minimum: