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District internal‑controls training stresses purchase workflows, fundraiser transparency and reporting misappropriation
Summary
Mr. Street presented a district internal‑controls training covering procurement workflows, segregation of duties, ECA vs booster account rules, fundraiser documentation, restrictions on Venmo/PayPal, and the district’s practice of reporting suspected misappropriation to the State Board of Accounts and the county prosecutor.
Mr. Street led a comprehensive internal‑controls briefing to the board emphasizing clear procurement workflows, separation of duties and strengthened oversight for extracurricular (ECA) accounts and booster/PTO organizations.
Key points: Mr. Street said purchases should follow an electronic requisition → principal approval → central office review → purchase‑order flow so funds are encumbered before spending. He urged use of district purchasing channels (tax‑exempt ID use restrictions), noted the district does not pay for goods in advance except in limited construction cases, and described controls to avoid duplicate payments and to require itemized receipts (alcohol and personal items are not reimbursed).
On extracurricular and outside support groups, Mr. Street told trustees that boosters and PTOs are separate legal entities that should maintain independent bank accounts and filing (Form 990 or equivalent), and he said staff should not serve as treasurers for those outside boards (staff may participate but should not constitute more than 50% of a support group’s board or serve as treasurer). He said donations of equipment or gifts over $5,000 require board approval.
Mr. Street also addressed fundraising platforms: the district permits platforms such as DonorsChoose, GoFundMe and MySchoolBucks with oversight, but does not currently accept Venmo or PayPal because those platforms do not provide the detailed reporting the district needs. He discussed expectations for fundraisers to document budgets, reconciliation and timely deposit of cash/checks, and advocated dual control for cash handling.
Accountability and audits: Mr. Street said the district reports suspected misappropriation to the State Board of Accounts and the county prosecutor; he stressed that any incident — from small to large — gets reported and investigated. He explained the district’s decision‑making about payments to individuals (most services are processed through payroll to produce W‑2s; some referees are treated as contractors processed through event systems).
Quote: Mr. Street to the board: "S b 1 really cut our operations funding. I'm losing about $4,000,000 of operations," a comment he used to frame tighter fiscal controls.
Next steps: Mr. Street said the district will publish a user manual for booster/PTO groups, provide training this summer, and continue annual training for bookkeepers and administrators.
The presentation prompted several trustee questions about fundraisers, permission slips for off‑site activities, and whether district staff would be added to manage these programs (Mr. Street and Dr. Madison said they do not expect additional headcount at this time).
