The Policy Committee is recommending Policy IGDF (and Policy JLA) be rescinded and proposed Policy JJE (“School-Based/Student Organization Fundraising Activities’), proposed Policy KB (“Incorporated Organization Fundraising Activities”), and proposed Policy KBA (“Unincorporated Fundraising Activities”) be adopted. File: IGDF (Also JLA) FUND RAISING IN SCHOOL-SPONSORED ACTIVITIES The Board of Education of Washington County believes that elementary children should not be involved in organized solicitations for the purpose of raising money for schools.

Door-to-door solicitations by students are not endorsed by the Washington County Board of Education at any grade level.

Fund raising activities at the high school level must conform to the following guidelines:

1. Each school-related organization proposing a fund-raising activity is to obtain the approval of the school’s principal. The organization is to submit to the principal the purpose of the activity, the estimated amount of money needed to accomplish the activity’s goal(s), the specifics of how the money is to be raised, and the time period for the fund-raising activity.

2. Insofar as possible, fund-raising activities are to be restricted to the school’s immediate attendance area.

3. Individuals involved in a fund-raising activity should have some means of identification relative to their relationship with the school and the organization.

4. Adequate financial records of all fund-raising activities are to be available for inspection by the Board’s internal auditor.

5. This policy shall not prohibit school-related organizations from selling products or coupons for products which conform to the above guidelines.

No student is to sell tickets for raffles or lotteries sponsored by school-related organizations.

No student is to be denied full participation in a school activity, nor have a grade affected, by his/her failure or refusal to participate in fund-raising campaigns related to that activity.

The selling of advertising for school publications, the selling of programs for school events, and the collection of gate receipts for normally scheduled school activities (athletic contests, choral concerts, etc.) are excluded from this policy. Policy adopted: June 14, 1977. Policy Revised: March 14, 1978 (to become effective July 1, 1978). Amended: September 16, 1980. Amended: March 6, 2001 Board of Education of Washington County

The Policy Committee is recommending Policy JLA (and Policy IGDF be rescinded and proposed Policy JJE (“School-Based/Student Organization Fundraising Activities’), proposed Policy KB (“Incorporated Organization Fundraising Activities”), and proposed Policy KBA (“Unincorporated Fundraising Activities”) be adopted.

File: JLA (Also IGDF)

FUND RAISING IN SCHOOL-SPONSORED ACTIVITIES The Board of Education of Washington County believes that elementary children should not be involved in organized solicitations for the purpose of raising money for schools. Door-to-door solicitations by students are not endorsed by the Washington County Board of Education at any grade level. Fund raising activities at the high school level must conform to the following guidelines:

1. Each school-related organization proposing a fund-raising activity is to obtain the approval of the school’s principal. The organization is to submit to the principal the purpose of the activity, the estimated amount of money needed to accomplish the activity’s goal(s), the specifics of how the money is to be raised, and the time period for the fund-raising activity.

2. Insofar as possible, fund-raising activities are to be restricted to the school’s immediate

attendance area.

3. Individuals involved in a fund-raising activity should have some means of identification relative to their relationship with the school and the organization.

4. Adequate financial records of all fund-raising activities are to be available for inspection by the

Board’s internal auditor.

5. This policy shall not prohibit school-related organizations from selling products or coupons for products which conform to the above guidelines.

No student is to sell tickets for raffles or lotteries sponsored by school-related organizations. No student is to be denied full participation in a school activity, nor have a grade affected, by his/her failure or refusal to participate in fund-raising campaigns related to that activity. The selling of advertising for school publications, the selling of programs for school events, and the collection of gate receipts for normally scheduled school activities (athletic contests, choral concerts, etc.) are excluded from this policy. Policy adopted: June 14, 1977. Policy revised: March 14, 1978 (to become effective July 1, 1978). Amended: September 16, 1980. Amended: March 6, 2001. Board of Education of Washington County

School-Based/Student Organization

Policy JJE

Exhibit JJE-E

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The Policy Committee is recommending the adoption of proposed Policy JJE. File: JJE SCHOOL-BASED/STUDENT ORGANIZATION FUNDRAISING ACTIVITIES

I. Purpose The purpose of Policy JJE is to set forth the expectations for and requirements of school-based/student organizations that sponsor school activities, programs, or fundraisers.

II. Background

The Board of Education recognizes the existence and appreciates the efforts of school-based/student organizations at work in the school community. The Board and administration are also fully cognizant that without the countless hours members of these groups give to their respective organizations, school district programs would suffer. Collaboratively, these activities should be consistent with the philosophy and objectives of the school system and the Board’s policies.

III. Definitions Within the context of this policy, the following definitions apply: A. Approved Fundraising Activity or Program: A fundraising activity or program (such as, but not

limited to, fundraising for athletic, non-athletic, interscholastic, co-curricular, or extracurricular) that has been approved by the school principal.

B. Crowdfunding: The practice of soliciting financial contributions from a large number of people, especially from the online community.

C. Crowdsourcing: The practice of obtaining needed services, ideas, or content by soliciting contributions from a large group of people and especially from the online community rather than from traditional employees or suppliers.

D. School-Based/Student Organization: Any such group established by and under the direct control of the school principal with programs usually sponsored by a teacher or coach. These organizations or clubs include, but are not limited to, language, drama, academic, or musical groups; student committees; student government; and sometimes cheerleader or sports groups.

IV. Policy Statement/Procedures

A. Standards that Apply to School-Based/Student Organizations

1. Door-to-door solicitations by elementary students are prohibited. Solicitations at the

secondary level are discouraged by the Board of Education, but are permitted with parental permission.

2. Individuals involved in a fundraising activity or program should carry a written explanation of the relationship between the fundraiser and the school or the organization. Examples of a written explanation include a fundraising flier or an identification card issued by the organization or club.

3. Crowdfunding and crowdsourcing are other methods of fundraising that can be used by school-based/student organizations provided such organizations comply with the

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administrative regulation regarding this method of fundraising promulgated by the Superintendent.

B. Activity or Program Approval

1. Each school-based/student organization proposing an activity or program to benefit a

school is to obtain the approval of the school’s principal. (see Exhibit JJE-E) With regard to the fundraising activity, the school-based/student organization is to submit to the principal the purpose of the activity, the estimated amount of money needed to accomplish the activity’s goal(s), the specifics of how the money is to be raised, the time period for the fundraising activity, etc.

2. The Role of Students in an Approved Activity or Program

a. Elementary children are not to be involved in organized solicitations for the purpose of raising money for schools.

b. No student is to sell tickets for raffles or lotteries sponsored by school-based/student organizations.

c. No student is to be denied full participation in a school activity or program, nor have a grade affected, by his/her failure or refusal to participate in fundraising campaigns related to that activity.

3. Requirements for a Fundraising Activity or Program

a. Insofar as possible, a direct fundraising activity or program is to be restricted to the

school’s immediate attendance area. b. Adequate financial records of all fundraising activities or programs are to be prepared

and made available for inspection by the Board of Education’s internal auditor. c. The selling of advertising for school publications, the selling of programs for school

events, and the collection of gate receipts for normally scheduled school activities (athletic contests, choral concerts, etc.) are excluded from this policy.

4. Finances

a. School fundraisers, including those of any school club or team, are to be administered by the school principal and the funds are to be placed in a dedicated school account.

b. For each fundraiser, the sponsor of the fundraiser (usually a teacher or coach) must provide a separate and distinct detailed list/cash receipt log that shows the amount of product sold and the amount of money collected including applicable sales tax. The list is submitted by the sponsor to the school bookkeeper along with the cash receipts for deposit.

c. All extracurricular receipts and disbursements are “school funds” that are restricted for the use and support of the respective activity or program. As such, these funds are subject to the same requirements, rules, and procedures as are all other school funds.

C. Administrative Regulation

The Superintendent may promulgate an administrative regulation to implement this policy.

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See also: Exhibit JJE-E: “Fundraising Activity or Program Approval Form” Policy JICG: “Use and Possession of Tobacco Products” Policy JICH: “Drug and Alcohol Use and Assistance Program”

(Each of the above listed policies may be clicked on to view a link to the documents with the exception of Exhibit JJE-E, which follows this policy.) Policy adopted: Board of Education of Washington County

The Policy Committee is recommending the adoption of proposed Exhibit JJE-E.

File: JJE-E

WASHINGTON COUNTY PUBLIC SCHOOLS FUNDRAISING ACTIVITY OR PROGRAM APPROVAL FORM

PART A: TO BE COMPLETED BY ORGANIZATION OR CLUB

School

Club/Organization

Purpose of Fund Raiser

Estimated amount of money needed

How the money will be raised*

Date(s) of Fundraiser

Vendor of product(s), if applicable

Location of activity(ies), if applicable

Sponsor/Adult

Phone Number

Fund Raising Project Form completed by Organization/Club on ______________(date).

Signature of Organization/Club Advisor _________________________________

PART B: TO BE COMPLETED BY SCHOOL PRINCPAL

Approved Denied

Reason for denial

Principal Signature Date

A copy of this form is to be provided by the school principal to the WCPS Associate Superintendent for Curriculum and Instruction, the WCPS Chief Operating Officer, and the WCPS Facilities Planning and

Development Department. *Additional safeguards are in place for crowdfunding and crowdsourcing.

Incorporated Organization

Policy KB Exhibit KB-E(1) Exhibit KB-E(2) Exhibit KB-E(3) Exhibit KB-E(4)

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The Policy Committee is recommending the adoption of proposed Policy KB. File: KB INCORPORATED ORGANIZATION FUNDRAISING ACTIVITIES

I. Purpose The purpose of Policy KB is to set forth the expectations for and requirements of incorporated organizations that sponsor school activities, programs, or fundraisers.

II. Background

The Board of Education recognizes the existence and appreciates the efforts of incorporated organizations at work in the school community. The Board and administration are also fully cognizant that without the countless hours members of these groups give to their respective organizations, school district programs would suffer. Collaboratively, these activities should be consistent with the philosophy and objectives of the school system and the Board’s policies.

III. Definitions Within the context of this policy, the following definitions apply: A. Approved Fundraising Activity or Program: A fundraising activity or program (such as, but not

limited to, fundraising for athletic, non-athletic, interscholastic, co-curricular, or extracurricular activities) that has been approved by the school principal.

B. Crowdfunding: The practice of soliciting financial contributions from a large number of people, especially from the online community.

C. Crowdsourcing: The practice of obtaining needed services, ideas, or content by soliciting contributions from a large group of people and especially from the online community rather than from traditional employees or suppliers.

D. Incorporated Organization: A legal body with the quality of perpetual existence and succession that provides services, awards, funds, and/or equipment or sponsors school activities, programs, or fundraisers for school district sponsored programs and are of a co-curricular or extracurricular nature.

E. School Day: The period from the midnight before, to 30 minutes after the end of the official school day.

IV. Policy Statement/Procedures

A. Standards that Apply to Incorporated Organizations 1. Door-to-door solicitations by elementary students are prohibited. Solicitations at the

secondary level are discouraged by the Board of Education, but are permitted with parental permission.

2. Individuals involved in a fundraising activity or program should carry a written explanation of the relationship between the fundraiser and the school or the organization. Examples of a written explanation include a fundraising flier or an identification card issued by the organization or club.

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3. The following safeguards regarding donation-based crowdfunding and crowdsourcing are to be followed:*

a. Crowdfunding and crowdsourcing are other methods of fundraising that can be used by incorporated organizations provided the organization secures the prior written approval of the school principal. (See Exhibit KB-E(1) “Activity, Program, or Fundraiser Approval Form”). The organization must provide information regarding the purpose of the fundraising activity and any other details requested by the principal regarding the fundraising activity.

b. The Superintendent is authorized to identify prior to the start of each academic year which approved crowdfunding and crowdsourcing websites may be utilized.

c. Only those crowdfunding and crowdsourcing websites that require the funds and/or items to go directly to a particular school account or to a particular incorporated organization may be utilized.

d. Funds and/or items provided by utilizing crowdfunding or crowdsourcing must be used for the designated purpose.

e. All funds and/or items provided are the property of the incorporated organization which is to hold the property in trust for the school that is the intended benefactor of the fundraising activity.

f. Crowdfunding and crowdsourcing website postings and requests must comply with all laws as well as the policies of the Board of Education and their accompanying administrative regulations.

B. Authorization/Denial of Incorporated Organization

1. Prior to the start of the school year, an incorporated organization is required to renew or

apply to the school principal for recognition by submitting the required form which is known as Exhibit KB-E(2), “Authorization/Denial of Incorporated Organization.” The principal will use this form to document whether a request of an incorporated organization to be renewed or approved has been authorized or denied.

2. Only those incorporated organizations that have been authorized by the school principal are permitted to use the school’s name with regard to an approved activity or program. The organizations must adhere to all Board, district, and state-wide promulgated rules and policies. In order to maintain good standing with the Board, all organizations which are approved by the school principal shall adhere to the established guidelines. Failure to comply will result in the organization’s loss of recognition and, subsequently, its right to use the school name, engage in fundraising activities on behalf of the school, or to access school facilities.

3. Incorporated organizations are affiliated with the school in the sense that they carry the name of the school. A proposed activity or program may not proceed unless it has been approved by the school principal. (see Exhibit KB-E(1))

4. Incorporated organizations are sole and separate entities from the school and are responsible for their own compliance with applicable federal and state regulations.

* The Policy Committee has recommended that, to the extent possible, crowdfunding and crowdsourcing should be addressed in an administrative regulation.

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5. Concerns or issues of members of the incorporated organizations are to be directed to the school principal first. Unresolved issues are to be directed to the appropriate elementary or secondary director, and finally, if necessary, to the Superintendent or his/her designee.

C. Organizational Bylaws

1. Incorporated organizations affiliated with a school must have a constitution and/or bylaws. These documents must be current and on file in the principal’s office.

2. All subsequent changes to the constitution and/or bylaws made during the school year must be provided to the principal.

3. If the incorporated organization is required by its state/national organization to have

bylaws, the organization’s existing bylaws may be submitted to the school principal. If the organization does not have bylaws, bylaws must be written and contain the following:

a. The name of the incorporated organization. b. The objective of the incorporated organization including the statement, "This

incorporated organization will abide by Board of Education of Washington County policies and administrative regulations that apply to school-based activities and fundraisers."

c. Eligibility for membership and membership enrollment procedures. d. The selection, election procedures, and duties of officers. e. Recommended fiscal controls are set forth in the accompanying administrative

regulation.

D. Financial Standards 1. Incorporated organizations may not use the school’s tax exempt number for any of their

activities. They must obtain their own tax exempt numbers. Likewise, incorporated organizations may not use the school’s mailing permit or the school system’s employer identification number (EIN) or taxpayer identification number (TIN).

2. Incorporated organizations shall name an FDIC insured depository bank or NCUA

insured depository credit union into which all proceeds and receipts shall be deposited. Standard accounting practices in maintaining and disbursing funds must be followed. Standard accounting practices include:

a. Prompt deposit of all funds received. b. Properly authorized and documented basis for disbursements. c. Reconciliation of the bank statement on a monthly and timely basis with the

transactions and balance in the general ledger.

3. Incorporated organizations must maintain their own accounts outside of the school. However, incorporated organizations are required to submit a detailed financial report (see Exhibit KB-E(3)) of expenditures and revenue to the principal and Washington County Public Schools’ (WCPS) Finance Department. They must submit their report within six weeks of the end of their fiscal period/year. Incorporated organizations supporting a singular school sport must submit their detailed financial report within six weeks after the end of the sport’s season.

4. In years during which gross annual income or total deposits in any type of account at any

time during the fiscal year (July 1 to June 30) exceeds $100,000, incorporated organizations are required to have agreed upon procedures (see Exhibit KB-E(4)) performed by a certified public accounting firm. The incorporated organization is

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financially responsible for the cost of this engagement. The WCPS internal auditor does not perform audits of these organizations. A copy of the results of the agreed upon procedures for the prior fiscal year is to be submitted to the school system’s Chief Operating Officer on or before September 1 of each year by the president of the incorporated organization or club.

5. Copies of any financial statements/reports required to be submitted to the incorporated

organization’s state/national organization, Internal Revenue Service, State of Maryland Comptroller, or Maryland Secretary of State may be submitted in lieu of the requirements in paragraphs 3 and 4 above.

6. Monetary contributions and any and all purchases of equipment, materials, or instructional materials for a program or organization shall adhere to the Board of Education’s “Gift Policy.” (See Policy KCD) No cash shall be given to any school system employee to use at his or her discretion. This prohibition does not apply to end-of-the-year gifts the organization gives to a teacher or staff member.

E. Fundraising Activities

1. Any activities or fundraising projects initiated by the incorporated organization and which

involve the use of the name of the school must be proposed, in writing, and be authorized by the school principal or designee before the activity commences or any final arrangements are made. (see Exhibit KB-E(1))

2. After receiving approval for a fundraising activity, an incorporated organization may

conduct the fundraiser on campus or Board of Education property only after receiving separate approval from the school principal and the Facilities Planning and Development Department in accordance with the requirements set forth in Policy KG (“Use of School Facilities by Non-School Groups”).

3. Gaming events (such as a carnival, bazaar, or raffle, as defined in Section 13-201 of the Criminal Law Article, Annotated Code of Maryland), hereinafter “Event,” are prohibited on Board of Education property unless:

a. The Event does not occur during the school day; b. The Event does not involve students; c. Proceeds from the Event are used for the benefit of the school system, its programs,

or its students; d. The Event is conducted by a qualified organization and the Event is managed

personally through its members only; e. The qualified organization complies with the Criminal Law Article of the Annotated

Code of Maryland; and f. The qualified organization obtains the permission of the Superintendent or the

Superintendent’s designee in advance of the Event.

4. An incorporated organization in good standing may request the school principal to allow a school employee to assist in an approved activity or program. In the event the principal grants the request and the employee volunteers to provide assistance, the employee may be involved in ordering items, making sales, and collecting money. Notwithstanding the employee’s involvement in the approved activity or program, the incorporated organization is wholly responsible for complying with the requirements set forth in this policy and any administrative regulation that may be adopted.

If the employee is an officer of the incorporated organization, he/she may not participate in a vote that would result in a direct benefit to him/her. If the disqualification leaves the incorporated organization without a quorum capable of acting or the employee is the only

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person authorized to act, he/she must disclose the nature and circumstances of the conflict before participating in the vote. This disclosure must be reflected in the meeting minutes.

5. Incorporated organizations must acknowledge that they will not require mandatory

participation by students in any fundraising activity as a condition of participation in the school-sponsored programs.

6. The school principal has the authority to void or cancel any and all fundraising activities

or programs that he/she determines is inconsistent with the information provided on the fundraising approval form (Exhibit KB-E(1)) or is not in the best interest of the school system or its students. Consideration should be given, on a case-by-case basis, to the costs incurred by the incorporated organization prior to the cancelation of the fundraising activity or program. The incorporated organization may appeal the principal’s decision to the Associate Superintendent for Curriculum and Instruction.

7. Incorporated organizations shall prohibit the sale or consumption of alcoholic beverages

and the use of any tobacco products at all fundraising activities on Board of Education property.

8. Equity principles and compliance benchmarks described in Title IX of the Education

Amendments of 1972 federal law must be used to guide fundraising efforts and resource allocation decisions.

F. Administrative Regulation

The Superintendent may promulgate an administrative regulation to implement this policy.

See also: Exhibit KB-E(1): “Fundraising Activity or Program Approval Form” Exhibit KB-E(2): “Authorization/Denial of Incorporation Organization” Exhibit KB-E(3): “Sample Financial Report” Exhibit KB-E(4): “Suggested Agreed Upon Financial Procedures for Incorporated

Organizations” Policy JICG: “Use and Possession of Tobacco Products” Policy JICH: “Drug and Alcohol Use and Assistance Program” Policy KC: “Public-Private Educational Partnerships – Construction Activity” Administrative Regulation KC-R: “Procedures of the Administration of Public-Private Educational Partnerships – Construction Activity” Policy KCD: “Gifts, Bequests, and Donations (“Gift Policy”)” Policy KG: “Use of School Facilities by Non-School Groups” Administrative Regulation KG-R: “Information for Applicants for Use of School Facilities” Exhibit KG-E: “Application for Use of Facilities”

(Each of the above listed policies, administrative regulations, and exhibits may be clicked on to view a link to the documents with the exception of Exhibits KB-E(1)-(4), which follow this policy.)

Note: Individuals must be in compliance with the following laws, which may be amended from

time-to-time: Annotated Code, Criminal Law Article, Title 12, Subtitle 1 – General Provisions Annotated Code, Criminal Law Article, Title 13, Subtitle 1 – General Provisions Annotated Code, Criminal Law Article, Title 13, Subtitle 2 – Gaming Events – Certain Counties Annotated Code, Criminal Law Article, Title 13, Subtitle 24 – Washington County

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Annotated Code, Business Regulation, Title 6, Subtitle 1 – Definitions; General Provisions Annotated Code, Business Regulation, Title 6, Subtitle 4 – Charitable Organizations Annotated Code, Business Regulation, Title 6, Subtitle 6 – Prohibited Acts; Penalties

Policy adopted: Board of Education of Washington County

The Policy Committee is recommending the adoption of proposed Exhibit KB-E(1). File: KB-E(1)

WASHINGTON COUNTY PUBLIC SCHOOLS FUNDRAISING ACTIVITY OR PROGRAM APPROVAL FORM

PART A: TO BE COMPLETED BY ORGANIZATION OR CLUB

School

Club/Organization

Purpose of Fund Raiser

Estimated amount of money needed

How the money will be raised*

Date(s) of Fundraiser

Vendor of product(s), if applicable

Location of activity(ies), if applicable

Sponsor/Adult

Phone Number

Fund Raising Project Form completed by Organization/Club on ______________(date).

Signature of Organization/Club President _________________________________

PART B: TO BE COMPLETED BY SCHOOL PRINCPAL

Approved Denied

Reason for denial

Principal Signature Date

A copy of this form is to be provided by the school principal to the WCPS Associate Superintendent for Curriculum and Instruction, the WCPS Chief Operating Officer, and the WCPS Facilities Planning and

Development Department. *Additional safeguards are in place for crowdfunding and crowdsourcing. Exhibit adopted:_______________ Board of Education of Washington County

The Policy Committee is recommending the adoption of proposed Exhibit KB-E(2). File: KB-E(2)

WASHINGTON COUNTY PUBLIC SCHOOLS

AUTHORIZATION/DENIAL OF AN INCORPORATED ORGANIZATION

School: _______________________________________________________ Date:_____________

THIS SECTION TO BE COMPLETE BY THE PARENT ORGANIZATION/BOOSTER CLUB

Name of organization/club: __________________________________________________________

Objective: _________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________

Officers List all officers and contact information (i.e., telephone number). Please be reminded that WCPS employees, regardless of their work location, may not handle any of the financial activities of this

organization unless approved by the school principal per paragraph IV.E.4. of Policy KB. President:__________________________________________________________________________ Vice President:______________________________________________________________________ Treasurer:__________________________________________________________________________ Secretary:__________________________________________________________________________

What is your fiscal year (e.g. Jan. 1 – Dec. 31; July 1 – June 30)? _____________________________

Name and address of FDIC insured bank or NCUA insured credit union: ___________________________________________________________________________________ Total amount on deposit (in all accounts): $_______________________________________________ Anticipated annual income: $___________________________________________________________

Signature of Organization/Club President: ___________________________________________

SCHOOL PRINCIPAL USE ONLY

I certify that the following documents have been reviewed and are on file in my office: _____ Bylaws _____Year-end financial report from prior year (Only applicable if group was in existence during prior year.)

The above named organization has been: ________Approved _______Denied (See Comments below.)

Comments:_________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________

Principal’s signature:_____________________________________________ Date:______________

A COPY OF THE COMPLETED FORM MUST BE PROVIDED BY THE SCHOOL PRINCIPAL TO THE ORGANIZATON/CLUB AND SENT TO THE WCPS FINANCE DEPARTMENT, ATTN: EXECUTIVE DIRECTOR OF ACCOUNTING, THE ASSOCIATE SUPERINTENDENT FOR CURRICULUM AND

INSTRUCTION, AND THE FACILITIES PLANNING AND DEVELOPMENT DEPARTMENT

Exhibit adopted: ______________ Board of Education of Washington County

Page 1 of 2

The Policy Committee is recommending the adoption of proposed Exhibit KB-E(3).

File: KB-E(3)

SAMPLE FINANCIAL REPORT

BALANCE SHEET

GROUP NAME

Statement of Assets, Liabilities, and Net Assets

(Date)______________________________

Assets:

Cash and cash equivalents1 $ XXX

Other assets (identify) X

Total assets $XXX

Liabilities and Net Assets:

Loans payable $XX

Other liabilities (identify) X

Total liabilities $XX

Restricted net assets X

Unrestricted net assets XX

Total net assets $XX

1 A cash equivalent is a highly liquid investment having a maturity of three months or less with minimal risk of a change in value.

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SAMPLE FINANCIAL REPORT

INCOME STATEMENT

GROUP NAME

Statement of Support, Revenue, and Expenses

For the Year Ended ______________________________

Unrestricted support and revenue:

Contributions $ XXXX

Fundraisers:

Fundraiser #1 (Identify) gross receipts $XXXX

Fundraiser #1 (Identify) expenses (XXX) $XXX

Fundraiser #2 (Identify) gross receipts XXXX

Fundraiser #2 (Identify) expenses (XXX) XXX

Total Fundraisers XXXX

Membership Dues XXX

Interest X

Other X

Total unrestricted support and revenue $XXXX

Expenses:

Office supplies and postage $XX

Professional fees XX

Program Expenses: (list)

Program Expense #1 $XX

Program Expense #2 XX

Program Expense #3 XX XXX

Total expenses $XXXX

Increase in unrestricted net assets (excess revenue over expenses) XX

Unrestricted net assets, beginning of year XX

Unrestricted net assets, end of year $XX

Exhibit adopted: ___________

Board of Education of Washington County

The Policy Committee is recommending the adoption of proposed Exhibit KB-E(4).

KB-E(4)

SUGGESTED AGREED UPON FINANCIAL PROCEDURES FOR INCORPORATED ORGANIZATIONS

Reports: Obtain year-end reports and review for completeness and reasonableness. Compare fund balance at the end of the prior year to the end of the current year and compare to net income on statement of activity, reconciling any differences. Verify the rationale for any significant reduction in fund balance. Review types of accounts and amounts for appropriateness and reasonableness. Cash Disbursements: Select a sample of checks from throughout the year and compare to supporting invoices, considering authenticity, reasonableness, appropriateness of expenditure, approval, timeliness of payment, classification in the accounts, and adherence to check writing policy/procedure. A portion of this sample must include checks made payable to the principal and bookkeeper. Cash Receipts: Select a sample of deposits on the bank statement and trace to deposit slips and recording in the general ledger for proper classification. Compare date of deposit to date of activity generating the cash receipt to verify timeliness of deposit. Conversely, select a sample of cash receipts and verify that they are deposited intact. Bank Reconciliations: Review three bank reconciliations (from the beginning, middle and end of the year) for accuracy, completeness, and unusual items. Review for stale-dated outstanding checks, if any. Review subsequent bank statement for clearing of deposits in transit and outstanding checks.

_________________________________ _____________________________________ Signature of President Signature of Treasurer Date: Date:

Exhibit adopted:__________

Board of Education of Washington County

Unincorporated Organization

Policy KBA

Exhibit KBA-E(1) Exhibit KBA-E(2) Exhibit KBA-E(3) Exhibit KBA-E(4)

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The Policy Committee is recommending the adoption of proposed Policy KBA. File: KBA UNINCORPORATED ORGANIZATION FUNDRAISING ACTIVITIES

I. Purpose The purpose of Policy KBA is to set forth the expectations for and requirements of unincorporated organizations that sponsor school activities, programs, or fundraisers.

II. Background

The Board of Education recognizes the existence and appreciates the efforts of unincorporated organizations at work in the school community. The Board and administration are also fully cognizant that without the countless hours members of these groups give to their respective organizations, school district programs would suffer. Collaboratively, these activities should be consistent with the philosophy and objectives of the school system and the Board’s policies.

III. Definitions Within the context of this policy, the following definitions apply: A. Approved Fundraising Activity or Program: A fundraising activity or program (such as, but not

limited to, fundraising, athletic, non-athletic, interscholastic, co-curricular, or extracurricular activities) that has been approved by the school principal.

B. Crowdfunding: The practice of soliciting financial contributions from a large number of people, especially from the online community.

C. Crowdsourcing: The practice of obtaining needed services, ideas, or content by soliciting contributions from a large group of people and especially from the online community rather than from traditional employees or suppliers.

D. Unincorporated Organization: A voluntary group of persons, without a charter, formed by mutual consent for purpose of promoting a common enterprise or pursuing a common objective.

E. School Day: The period from the midnight before, to 30 minutes after the end of the official school day.

IV. Policy Statement/Procedures A. Standards that Apply to Unincorporated Organizations

1. Door-to-door solicitations by elementary students are prohibited. Solicitations at the

secondary level are discouraged by the Board of Education, but are permitted with parental permission.

2. Individuals involved in a fundraising activity or program should carry a written explanation of the relationship between the fundraiser and the school or the organization. Examples of a written explanation include a fundraising flier or an identification card issued by the organization or club.

3. The following safeguards regarding donation-based crowdfunding and crowdsourcing are to be followed:

Page 2 of 5

a. Crowdfunding and crowdsourcing are other methods of fundraising that can be used by unincorporated organizations provided the organization secures the prior written approval of the school principal. (See Exhibit KBA-E(1)). The organization must provide information regarding the purpose of the fundraising activity and any other details requested by the principal regarding the fundraising activity.

b. The Superintendent is authorized to identify prior to the start of each academic year which approved crowdfunding and crowdsourcing websites may be utilized.

c. Only those crowdfunding and crowdsourcing websites that require the funds and/or items to go directly to a particular school account or to a particular unincorporated organization may be utilized.

d. Funds and/or items provided by utilizing crowdfunding or crowdsourcing must be used for the designated purpose.

e. All funds and/or items provided are the property of the unincorporated organization which is to hold the property in trust for the school that is the intended benefactor of the fundraising activity.

f. Crowdfunding and crowdsourcing website postings and requests must comply with all laws as well as the policies of the Board of Education and their accompanying administrative regulations.

B. Authorization/Denial of Unincorporated Organization

1. Prior to the start of the school year, an unincorporated organization is required to renew or apply to the school principal for recognition by submitting the required form which is known as Exhibit KBA-E(2), “Authorization/Denial of Unincorporated Organization.” The principal will use this form to document whether a request of an unincorporated organization to be renewed or approved has been authorized or denied.

2. Only those unincorporated organizations that have been authorized by the school principal are permitted to use the school’s name with regard to an approved activity or program. The organizations must adhere to all Board, district, and state-wide promulgated rules and policies. In order to maintain good standing with the Board, all organizations which are approved by the school principal shall adhere to the established guidelines. Failure to comply will result in the organization’s loss of recognition and, subsequently, its right to utilize or access school facilities.

3. Unincorporated organizations are affiliated with the school in the sense that they carry the name of the school. A proposed activity or program may not proceed unless it has been approved by the school principal. (see Exhibit KBA-E(1))

4. Unincorporated organizations are sole and separate entities from the school and are responsible for their own compliance with applicable federal and state regulations.

5. Concerns or issues of members of the unincorporated organizations are to be directed to the school principal first. Unresolved issues are to be directed to the appropriate elementary or secondary director, and finally, if necessary, to the Superintendent or his/her designee.

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C. Organizational Bylaws

1. Unincorporated organizations affiliated with a school must have a constitution and/or bylaws. These documents must be current and on file in the principal’s office.

2. All subsequent changes to the constitution and/or bylaws made during the school

year must be provided to the principal.

3. The bylaws must contain the following:

a. The name of the unincorporated organization. b. The objective of the unincorporated organization including the statement, "This

unincorporated organization will abide by Board of Education of Washington County policies and administrative regulations that apply to school-based activities and fundraisers."

c. Eligibility for membership and membership enrollment procedures. d. The selection, election procedures, and duties of officers. e. Recommended fiscal controls are set forth in the accompanying administrative

regulation.

D. Financial Standards

1. Unincorporated organizations may not use the school’s tax exempt number for any of their activities. They must obtain their own tax exempt numbers. Likewise, organizations may not use the school’s mailing permit or the school system’s employer identification number (EIN) or taxpayer identification number (TIN).

2. Unincorporated organizations shall name an FDIC insured depository bank or NCUA

insured depository credit union into which all proceeds and receipts shall be deposited. Standard accounting practices in maintaining and disbursing funds must be followed. Standard accounting practices include:

a. Prompt deposit of all funds received. b. Properly authorized and documented basis for disbursements. c. Reconciliation of the bank statement on a monthly and timely basis with the

transactions and balance in the general ledger.

3. Unincorporated organizations must maintain their own accounts outside of the school. However, organizations are required to submit a detailed financial report (see Exhibit KBA-E(3)) of expenditures and revenue to the principal and Washington County Public Schools’ (WCPS) Finance Department. They must submit their report within six weeks of the end of their fiscal period/year. Unincorporated organizations supporting a singular school sport must submit their detailed financial report within six weeks after the end of the sport’s season.

4. In years during which gross annual income or total deposits in any type of account at any time during the fiscal year (July 1 to June 30) exceeds $100,000, unincorporated organizations are required to have agreed upon procedures (see Exhibit KBA-E(4)) performed by a certified public accounting firm. The unincorporated organization is financially responsible for the cost of this engagement. The WCPS internal auditor does not perform audits of these organizations. A copy of the results of the agreed upon procedures for the prior fiscal year is to be submitted to the school system’s Chief Operating Officer on or before September 1 of each year by the president of the unincorporated organization or club.

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5. Monetary contributions and any and all purchases of equipment, materials, or instructional materials for a program or organization shall adhere to the Board of Education’s “Gift Policy.” (See Policy KCD) No cash shall be given to any school system employee to use at his or her discretion. This prohibition does not apply to end-of-the-year gifts the organization gives to a teacher or staff member.

E. Fundraising Activities

1. Any activities or fundraising projects initiated by the unincorporated organization and which involve the use of the name of the school must be proposed, in writing, and be authorized by the school principal or designee before the activity commences or any final arrangements are made. (see Exhibit KBA-E(1))

2. After receiving approval for a fundraising activity, an unincorporated organization may conduct the fundraiser on campus or Board of Education property only after receiving separate approval from the school principal and the Facilities Planning and Development Department in accordance with the requirements set forth in Policy KG (“Use of School Facilities by Non-School Groups”).

3. Gaming events (such as a carnival, bazaar, or raffle, as defined in Section 13-201 of the Criminal Law Article, Annotated Code of Maryland), hereinafter “Event,” are prohibited on Board of Education property unless:

a. The Event does not occur during the school day; b. The Event does not involve students; c. Proceeds from the Event are used for the benefit of the school system, its

programs, or its students; d. The Event is conducted by a qualified organization and the Event is managed

personally through its members only; e. The qualified organization complies with the Criminal Law Article of the

Annotated Code of Maryland; and f. The qualified organization obtains the permission of the Superintendent or the

Superintendent’s designee in advance of the Event.

4. An unincorporated organization in good standing may request the school principal to allow a school employee to assist in an approved activity or program. In the event the principal grants the request and the employee volunteers to provide assistance, the employee may be involved in ordering items, making sales, and collecting money. Notwithstanding the employee’s involvement in the approved activity or program, the unincorporated organization is wholly responsible for complying with the requirements set forth in this policy and any administrative regulation that may be adopted. If the employee is an officer of the unincorporated organization, he/she may not participate in a vote that would result in a direct benefit to him/her. If the disqualification leaves the unincorporated organization or club without a quorum capable of acting or the employee is the only person authorized to act, he/she must disclose the nature and circumstances of the conflict before participating in the vote. This disclosure must be reflected in the meeting minutes.

5. Unincorporated organizations must acknowledge that they will not require mandatory participation by students in any fundraising activity as a condition of participation in the school-sponsored programs.

6. The school principal has the authority to void or cancel any and all fundraising activities or expenditure programs that he/she determines is inconsistent with the

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information provided on the fundraising approval form (Exhibit KBA-E(1)) or is not in the best interest of the school system or its students. Consideration should be given, on a case-by-case basis, to the costs incurred by the unincorporated organization prior to the cancelation of the fundraising activity or program. The unincorporated organization may appeal the principal’s decision to the Associate Superintendent for Curriculum and Instruction.

7. Unincorporated organizations shall prohibit the sale or consumption of alcoholic

beverages and the use of any tobacco products at all fundraising activities on Board of Education property.

8. Equity principles and compliance benchmarks described in Title IX of the Education

Amendments of 1972 federal law must be used to guide fundraising efforts and resource allocation decisions.

F. Administrative Regulation

The Superintendent may promulgate an administrative regulation to implement this policy.

See also: Exhibit KBA-E(1): “Fundraising Activity or Program Approval Form” Exhibit KBA-E(2): “Authorization/Denial of an Unincorporated Organization” Exhibit KBA-E(3): “Sample Financial Report”

Exhibit KBA-E(4): “Suggested Agreed Upon Financial Procedures for Unincorporated Organizations” Policy JICG: “Use and Possession of Tobacco Products” Policy JICH: “Drug and Alcohol Use and Assistance Program” Policy KC: “Public-Private Educational Partnerships – Construction Activity” Administrative Regulation KC-R: “Procedures of the Administration of Public-Private Educational Partnerships – Construction Activity” Policy KCD: “Gifts, Bequests, and Donations (“Gift Policy”)” Policy KG: “Use of School Facilities by Non-School Groups” Administrative Regulation KG-R: “Information for Applicants for Use of School Facilities” Exhibit KG-E: “Application for Use of Facilities”

(Each of the above listed policies, administrative regulations, and exhibits may be clicked on to view a link to the documents with the exception of Exhibits KB-E(1)-(4), which follow this policy.) Note: Individuals must be in compliance with the following laws, which may be amended from

time-to-time: Annotated Code, Criminal Law Article, Title 12, Subtitle 1 – General Provisions Annotated Code, Criminal Law Article, Title 13, Subtitle 1 – General Provisions Annotated Code, Criminal Law Article, Title 13, Subtitle 2 – Gaming Events – Certain Counties Annotated Code, Criminal Law Article, Title 13, Subtitle 24 – Washington County Annotated Code, Business Regulation, Title 6, Subtitle 1 – Definitions; General Provisions Annotated Code, Business Regulation, Title 6, Subtitle 4 – Charitable Organizations Annotated Code, Business Regulation, Title 6, Subtitle 6 – Prohibited Acts; Penalties

Policy adopted: Board of Education of Washington County

The Policy Committee is recommending the adoption of proposed Exhibit KBA-E(1). File: KBA-E(1)

WASHINGTON COUNTY PUBLIC SCHOOLS FUNDRAISING ACTIVITY OR PROGRAM APPROVAL FORM

PART A: TO BE COMPLETED BY ORGANIZATION OR CLUB

School

Club/Organization

Purpose of Fund Raiser

Estimated amount of money needed

How the money will be raised*

Date(s) of Fundraiser

Vendor of product(s), if applicable

Location of activity(ies), if applicable

Sponsor/Adult

Phone Number

Fund Raising Project Form completed by Organization/Club on ______________(date).

Signature of Organization/Club President _________________________________

PART B: TO BE COMPLETED BY SCHOOL PRINCPAL

Approved Denied

Reason for denial

Principal Signature Date

A copy of this form is to be provided by the school principal to the WCPS Associate Superintendent for Curriculum and Instruction, the WCPS Chief Operating Officer, and the WCPS Facilities Planning and

Development Department. *Additional safeguards are in place for crowdfunding and crowdsourcing. Exhibit adopted: Board of Education of Washington County

The Policy Committee is recommending the adoption of proposed Exhibit KBA-E(2). File: KBA-E(2)

Exhibit adopted:____________ Board of Education of Washington County

WASHINGTON COUNTY PUBLIC SCHOOLS

AUTHORIZATION/DENIAL OF AN UNINCORPORATED ORGANIZATION

School: _______________________________________________________ Date:_____________

THIS SECTION TO BE COMPLETE BY THE PARENT ORGANIZATION/BOOSTER CLUB

Name of organization/club: __________________________________________________________

Objective: _________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________

Officers List all officers and contact information (i.e., telephone number). Please be reminded that WCPS employees, regardless of their work location, may not handle any of the financial activities of this

organization unless approved by the school principal per paragraph IV.E.4. of Policy KBA. President:__________________________________________________________________________ Vice President:______________________________________________________________________ Treasurer:__________________________________________________________________________ Secretary:__________________________________________________________________________

What is your fiscal year (e.g. Jan. 1 – Dec. 31; July 1 – June 30)? _____________________________

Name and address of FDIC insured bank or NCUA insured credit union: ___________________________________________________________________________________ Total amount on deposit (in all accounts): $_______________________________________________ Anticipated annual income: $___________________________________________________________

Signature of Organization/Club President: ___________________________________________

SCHOOL PRINCIPAL USE ONLY

I certify that the following documents have been reviewed and are on file in my office: _____ Bylaws _____Year-end financial report from prior year (Only applicable if group was in existence during prior year.)

The above named organization has been: ________Approved _______Denied (See Comments below.)

Comments:_________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________

Principal’s signature:_____________________________________________ Date:______________

A COPY OF THE COMPLETED FORM MUST BE PROVIDED BY THE SCHOOL PRINCIPAL TO THE ORGANIZATON/CLUB AND SENT TO THE WCPS FINANCE DEPARTMENT, ATTN: EXECUTIVE DIRECTOR OF

ACCOUNTING, THE ASSOCIATE SUPERINTENDENT FOR CURRICULUM AND INSTRUCTION, AND THE FACILITIES PLANNING AND DEVELOPMENT DEPARTMENT

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The Policy Committee is recommending the adoption of proposed Exhibit KBA-E(3).

File: KBA-E(3)

SAMPLE FINANCIAL REPORT

BALANCE SHEET

GROUP NAME

Statement of Assets, Liabilities, and Net Assets

(Date)______________________________

Assets:

Cash and cash equivalents1 $ XXX

Other assets (identify) X

Total assets $XXX

Liabilities and Net Assets:

Loans payable $XX

Other liabilities (identify) X

Total liabilities $XX

Restricted net assets X

Unrestricted net assets XX

Total net assets $XX

1 A cash equivalent is a highly liquid investment having a maturity of three months or less with minimal risk of a change in value.

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SAMPLE FINANCIAL REPORT

INCOME STATEMENT

GROUP NAME

Statement of Support, Revenue, and Expenses

For the Year Ended ______________________________

Unrestricted support and revenue:

Contributions $ XXXX

Fundraisers:

Fundraiser #1 (Identify) gross receipts $XXXX

Fundraiser #1 (Identify) expenses (XXX) $XXX

Fundraiser #2 (Identify) gross receipts XXXX

Fundraiser #2 (Identify) expenses (XXX) XXX

Total Fundraisers XXXX

Membership Dues XXX

Interest X

Other X

Total unrestricted support and revenue $XXXX

Expenses:

Office supplies and postage $XX

Professional fees XX

Program Expenses: (list)

Program Expense #1 $XX

Program Expense #2 XX

Program Expense #3 XX XXX

Total expenses $XXXX

Increase in unrestricted net assets (excess revenue over expenses) XX

Unrestricted net assets, beginning of year XX

Unrestricted net assets, end of year $XX

Exhibit adopted: ___________

Board of Education of Washington County

The Policy Committee is recommending the adoption of proposed Exhibit KBA-E(4).

KBA-E(4)

SUGGESTED AGREED UPON FINANCIAL PROCEDURES FOR UNINCORPORATED ORGANIZATIONS

Reports: Obtain year-end reports and review for completeness and reasonableness. Compare fund balance at the end of the prior year to the end of the current year and compare to net income on statement of activity, reconciling any differences. Verify the rationale for any significant reduction in fund balance. Review types of accounts and amounts for appropriateness and reasonableness. Cash Disbursements: Select a sample of checks from throughout the year and compare to supporting invoices, considering authenticity, reasonableness, appropriateness of expenditure, approval, timeliness of payment, classification in the accounts, and adherence to check writing policy/procedure. A portion of this sample must include checks made payable to the principal and bookkeeper. Cash Receipts: Select a sample of deposits on the bank statement and trace to deposit slips and recording in the general ledger for proper classification. Compare date of deposit to date of activity generating the cash receipt to verify timeliness of deposit. Conversely, select a sample of cash receipts and verify that they are deposited intact. Bank Reconciliations: Review three bank reconciliations (from the beginning, middle and end of the year) for accuracy, completeness, and unusual items. Review for stale-dated outstanding checks, if any. Review subsequent bank statement for clearing of deposits in transit and outstanding checks.

_________________________________ _____________________________________ Signature of President Signature of Treasurer Date: Date:

Exhibit adopted:__________

Board of Education of Washington County