The Moment of Truth. Public Purpose. Can your school have an employeerecognition. Can your district hold a retirement party for a retiring principal?

Transcription

1 CERTIFIED PUBLIC Accountants & Consultants Public Purpose Presented by: Kari Steinbeisser, CPA, CFE, Jena Berget and Brenda Parsley, CPA The Moment of Truth Can your school have an employeerecognition program? Can your district hold a retirement party for a retiring principal? 1

2 The Moment of Truth Can your district give employees a surprise bonus at the end of the school year? Can your district buy flowers for a teacher who is in the hospital? The Moment of Truth In recognition of improved test scores, can your district give gift cards to those selected teachers? Can school board s ask parent teacher organizations to donate to the district for a specific purpose? 2

3 General Public Purpose Benefits the community as a whole Directly relates to function of government Primary objective does not benefit a private interest General Public Purpose Must meet the following Public purpose Authority to make it Specific statute Implied 3

4 General Public Purpose Keep in mind Public funds Think of the taxpayers what would they think about how their money is being spent? If you are questioning the expenditure, it may not be appropriate Contact your attorney Gift Law Real or personal property, a service, a loan, a forbearance or forgiveness of indebtedness, or a promise of future employment, that is given and received without the giver receiving consideration of equal or greater value in return. 4

5 Gift Law Generally no gifts can be made to local officials Includes, but is not limited to, a member of the school board, superintendent, principal, or a district school officer of any ISD May be made with employee funds, not public funds, but remember the gift law! Gifts Other non-monetary gifts $5 rule Refreshments not to exceed $3 Other forms of compensation Gift cards Bonuses 5

6 Donations Public versus private interest Generally no authority to donate to people, nonprofits, charities or other groups Specifically stated in statute 6

7 Donations to Organizations Donation versus contract for service Exchange transaction Surplus computer equipment Meet certain criteria Given to certain organizations/individuals Donations Memberships & Dues No general authority to join private organizations School board may authorize to pay for certain memberships No authority to pay dues to a local chamber of commerce 7

8 Employee Recognition School boards can establish an employee recognition program Certain limitations exist No monetary awards No banquets or parties for all employees to attend The ISD can t pay for spouses or third parties to attend No purchases of alcoholic beverages 8

9 Employees - Meals District may furnish lunch for pupils and teachers on such terms as it determines Factors to consider for district paid meals Necessity of holding meetings during meal time Direct benefit to the ISD Employees Use of District Property/Equipment Who benefits? Breakroom supplies Copy machines/computers/technical equipment District vehicles Recommend policy establishing guidelines 9

10 Vending Machines Accessible by employees only Employees receive cash Not public funds if employees handle all aspects 10

11 Vending Machines Accessible by the public Formal contracting procedures Sales are public funds Other operating revenue Subject to audit Advocating/Educating on Ballot Questions Local ballot initiatives Informational Disclosure of potential effects State ballot initiatives Direct and substantial effect 11

12 Outside Organizations Supporting Schools Independent of school district District lacks authority to fundraise for the benefit of the nonprofit organization District lacks authority to give gifts to or fund these nonprofit organizations Outside Organizations Supporting Schools If funds are received from outside organization s Must accept donation by resolution Must comply with Minnesota Statutes Adopt a policy establishing guidelines 12

13 Resources Used Attorney General Opinions League of Minnesota Cities Public Purpose Expenditures Minnesota Statutes Office of the State Auditor Statements of Position State Senate - Gift Law The Truth Unveiled Can your school have an employee-recognition program? Can your district hold a retirement party for a retiring principal? 13

14 The Truth Unveiled Can your district give employees a surprise bonus at the end of the school year? Can your district buy flowers for a teacher who is in the hospital? The Truth Unveiled In recognition of improved test scores, can your district give gift cards to those selected teachers? Can school board s ask parent teacher organizations to donate to the district for a specific purpose? 14

15 Questions or Comments? Contact Information Kari Steinbeisser, CPA, CFE Manager (320) Jena Berget Senior Accountant (320) Brenda Parsley, CPA Staff Accountant (320)

16 CERTIFIED PUBLIC Accountants & Consultants Thank You! Presented by: Kari Steinbeisser, CPA, CFE, Jena Berget and Brenda Parsley, CPA 16