Small-dollar transactions, big responsibilities: five best practices for ASB fundraising and cash receipting

Whether from yearbook sales, prom tickets or direct donations, the money raised by Associated Student Body (ASB) groups are public funds. 

State law (RCWs 28A.325.020 and .030) makes plain that ASB funds are designated as public funds of the school district. This means districts must safeguard and account for ASB funds the same way they guard levy dollars or apportionment funds. It also means if ASB funds go missing or are stolen, you must report the loss to SAO. 

Since fundraisers often involve students collecting many transactions for small dollar amounts, they are a high-risk activity that call for strong controls and oversight. Ensuring you have strong cash handling procedures in place will go a long way to protecting these public funds. Here are some key steps to take for every fundraiser:  

1. Document all the money you receive as soon as you receive it. Several methods can achieve this goal: cash register receipts, reports from a point-of-sale system or old-fashioned receipt books. (If you use receipt books, just make sure they’re printed with the district and school name on them as a fraud-prevention measure.)  

2. If you must void a receipt, two people must witness and sign it. Two people must witness a voided fundraising receipt to make sure no one is acting alone. It protects the fundraiser, keeps things honest and helps your ASB stay audit-ready. 

3. Do a cash count. If it’s a multi-day event, count the cash at the end of each day. At one high school, SAO auditors conducted their own cash count and found the ASB fund was $1,161 short. A school official was aware of the shortage, but did not quickly report it to management. That meant the loss of public funds was not reported to law enforcement or SAO as required by state law.  

4. Deposit the funds each day, in the same cash or check composition noted on the receipts and cash counts. (Depositing less frequently requires a waiver from your County Treasurer (RCW 43.09.240).) Holding an excess of funds in your offices substantially increases the risk of fraud or loss.

• Tip: Money collected at an after-school event should be locked in the school safe or deposited in the night drop at the district’s bank. 

5. Ensure the fundraising receipts are reconciled to the fundraising documents and revenue projections at the end of the event.  

Other best practices include ensuring you provide annual training for ASB staff and students on the role of ASBs; establishing procedures for activities that involve goods or money; and having rigorous staff oversight of ASB activities to ensure everyone follows district policies and procedures. 

SAO offers resources and an on-demand training to make sure your cash handling procedures are strong

• Cash Receipting Guide and Checklist: Find tips and best practices for managing your cash collections. The guide includes a suite of short, one-to-two-page resources for leaders, managers, supervisors and payroll clerks. You can print the guide in sections and customize the checklist to meet your needs. 

• Cash receipting: Fraud Prevention and Internal Controls on-demand training: Follow an actual fraud case while learning about important best practices for internal controls.