Donna Independent School District. cvbnmqwertyuiopasdfghjklzxcvbnmq. Committed to Excellence. wertyuiopasdfghjklzxcvbnmqwertyuio

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2 ACCOUNTING STAFF Maricela Valdez Sandra Martinez David Robledo Jerry Cavazos Refugio (Ralph) De Los Santos Vacant Norma Rodriguez Belinda Gutierrez Chief Financial Officer Finance Director Director of Accounting Accounting Supervisor Accountant - AP Accountant - Cash Local Bookkeeper Federal Bookkeeper ACCOUNTS PAYABLE STAFF Refugio (Ralph) De Los Santos Delia Garcia Alma Yerena San Juanita Lopez Ida Gracia Accounts Payable Supervisor Head Accounts Payable Clerk Accounts Payable Clerk Account Payable Clerk Account Payable Clerk Prepared by: Ralph De Los Santos 2 9/29/2015

3 TABLE OF CONTENTS 1. REQUISITIONS 2. PURCHASE ORDERS 3. OPEN PURCHASE ORDERS 4. EMERGENCY PURCHASES 5. ACCOUNTS PAYABLE 6. CHECK DISTRIBUTION 7. DOUBLE ORDERS 8. BUDGET ISSUES ON PURCHASE ORDERS 9. TRAVEL 10. EXPENSE REIMBURSEMENTS 11. VENDOR FILES 12. VOIDS 13. CREDIT CARD VENDORS 14. SALES TAX Prepared by: Ralph De Los Santos 3 9/29/2015

4 1. REQUISITIONS Prepared by: Ralph De Los Santos 4 9/29/2015

5 REQUISITION PROCESS A requisition is an internal document by which a campus or department of the district requests to initiate a purchase order. It is a request generated electronically (through the use of automated systems-teams) for the purchase of supplies, services, equipment, etc. APPROVAL OF REQUISITIONS Requisitions should be initiated by those having proper authority, as defined in the district purchasing policy manual. Requisitions initiated by instructional, maintenance, child nutrition and support personnel should then be approved by the appropriate person, either the principal, department head or superintendent or designee. Requisitions which require expenditures from the Special Revenue Fund should be approved by the program director and administrator. Requisitions will then receive final approval from the business office. Section Texas Education Code states that a superintendent that approves any expenditure of school funds in excess of the amount appropriated for that item(s) in the adopted budget commits a Class C misdemeanor offense. Consequently, close supervision and monitoring of the availability of budget dollars and of the approval process for requisition competitive procurement important elements of a district s purchasing process. REQUISITION FORMAT Requisitions should include certain items: A description of items to be purchased The purpose of the items to be purchased or the reason for the services to be used. Complete information on items or events to be occurring Dates that items are needed for must be entered on the requisition. Any special instructions must be included on requisition (e.i. check processing information, check disbursement information, forms to be included with checks, etc.) The quantity needed Prepared by: Ralph De Los Santos 5 9/29/2015

6 A suggested vendor (should be from the district s approved vendor list) The code of the account to be charged Bid number The 5 W s should be answered in every requisition. (Who, What, When Where, & Why). The requisition should be in a standard format so that the information can be readily identified and transferred to a purchase order. FLOW OF REQUISITIONS Requisitions are received by the district s central purchasing department or business department responsible for this function. At this time, the requisition should be reviewed for the following: Accuracy Availability of funds Proper signatures Adequate description Proper account coding Overall completeness Appropriate documentation Purchasing guidelines The request is then assigned a purchase order number, vendor number (if applicable), purchase order date, and a cancellation date. The district should ensure that the appropriate competitive purchasing (i.e., competitive procurement, price quotes, etc.) is determined and performed before the requisition is approved for processing. After approval by the designated authority, a purchase order is issued to the vendor. Prepared by: Ralph De Los Santos 6 9/29/2015

7 AFTER THE FACT REQUISITIONS After the fact requisitions are strictly prohibited. All purchases of goods and/or services, including contract services, consultants, goods to be will student activity funds, etc. require approved purchase orders PRIOR to initiating purchases or services. Consultants are not to be retained without an approved purchase order. Purchases made without approved purchase orders are not guaranteed payment. Prepared by: Ralph De Los Santos 7 9/29/2015

8 2. PURCHASE ORDERS Prepared by: Ralph De Los Santos 8 9/29/2015

9 PURCHASE ORDERS Purchase orders are among the most commonly utilized method for procuring goods and services. As its name indicates, this document serves as a formal order for goods, materials and/or services from a vendor. A purchase order, once approved, is a binding commitment/contract for a district to remit payment to the vendor after the item(s) and an original invoice are received by the district. A purchase order is also an important accounting document. It contains information on the expenditure to be made and the account code to be charged. Once issued, the purchase order encumbers funds will serve as an expenditure control mechanism. Finally, the purchase order is utilized in the accounts payable process as it documents that an order has been received and accepted by the user and payment can be made to the vendor. PURCHASE ORDER PROCESS The purchase order is the written evidence of orders placed as a result of properly initiated and approved purchase requisitions. A purchase order should be of a standard format to facilitate processing and should contain the following items: Vendor name and address Quantity of goods Description of goods and answer the 5 W s (what, where, when who, and why) Account codes Price (per unit and in total) Payment terms Discounts, if any Any special instructions must be included on requisition (e.i. check processing information, check disbursement information, forms to be included with checks, do not mail will pick up check, etc.) Freight or service charges must be included on all purchased orders if required, the vendor should provide the information. Prepared by: Ralph De Los Santos 9 9/29/2015

10 Transportation arrangements Other pertinent factors such as delivery destination As indicated earlier, purchase orders start with a requisition which may be prepared electronically thru TEAMS. Requisitions originate with the user or user department and describe the item to be purchased, the quantity, pricing (if known), the account to be charged, and normally a suggested vendor. From the requisition a purchase order authorizing the purchase is prepared. Copies of purchase orders should be dispensed in the electronically or hardcopy in the following manner: Vendor Copy which is sent to the selected vendor Accounting Copy which is sent to the district's business office and used for encumbering funds from the proper account Receiving Copy or Receiver which is sent to the accounting department signed by the principal or department head when the order is received confirming that payment should be made according the district's accounts payable process User or File Copy which is kept by the user department for financial management purposes Warehouse copy which is sent to the warehouse for receiving purposes The district should establish purchase order cancellation procedures. Vendors should be informed of these procedures and the cancellation terms should be stated on the face of the purchase order itself. For example, a district may establish that purchase orders shall be cancelable if merchandise is not received within 90 days. Depending on certain factors relating to the purchase, flexible cancellation dates may be more appropriate (i.e., proximity of vendor, availability of merchandise, quantity ordered, etc.). The districts cancellation procedures include no backorders, no substitutions, no split orders and no additions. All purchase orders, 90 days and older will be automatically Forced Closed thru TEAMS APPROVING AND PROCESSING Prepared by: Ralph De Los Santos 10 9/29/2015

11 The purchase order should be approved through the business office by a responsible, designated official who is educated about purchasing law, policies, and procedures. Purchase orders MUST be obtained Prior to ordering goods and/or services. The purchasing department may maintain an electronic record or hard copy of all purchase orders issued for control purposes. AMOUNTS ENCUMBERED ON PURCHASE ORDERS Amounts encumbered on purchase orders must be for the full amount of goods or services needed to be purchased. Freight charges must be included on all purchase orders requiring the payment of freight charges. Amounts entered on purchase orders must be as accurate as possible to ensure no overage charges on individual items. Goods and services shall not exceed the amount approved on the purchase order. An additional purchase order is necessary for any overages on invoices. As stated on the purchase orders no backorders, substitutions, split orders or additions will be allowed. Prepared by: Ralph De Los Santos 11 9/29/2015

12 3. OPEN PURCHASE ORDERS Prepared by: Ralph De Los Santos 12 9/29/2015

13 BLANKET (OPEN) PURCHASE ORDERS A blanket (open) purchase order is issued to a pre-approved vendor authorizing purchases from that vendor over a period of time. Blanket purchase orders are valuable because they allow the purchase of items quickly. Both paperwork and related processing costs usually are reduced by blanket purchase orders. However, blanket purchase orders must follow certain criteria: pre-qualification of vendors, 5 W s need to be answered, limitation on the maximum amount for purchases (amount approved by Business Office per month per vendor), a specific time frame for purchases covered by the blanket purchase order (usually one month), and identification of authorized purchasers. Blanket purchase orders are issued so that supplies, materials, or services are available as needed by user departments. For example, blanket purchase orders may be requested on a regular basis by the Food Service department for perishable items. Commonly used in larger districts, these purchase orders eliminate numerous individual purchase orders for small dollar-value items. Blanket purchase orders are requested by user departments and, if approved by centralized purchasing, issued to vendors. Usually this type of purchase order remains in effect for only a specified amount of time and has a specified dollar limit that can be determine by the Business Department. During this time period, the district may purchase certain specified items from the vendor not exceeding the total dollar limit without issuing additional purchasing orders. The user department must issue a new requisition if items are requested beyond the specified time period. The advantage of blanket or open purchase orders is that merchandise is accessible to users with some flexibility and without the effort of processing purchase orders. Blanket or open purchase orders are allowed for the following departments only: 1. Maintenance 2. Transportation 3. Custodial 4. Food Service 5. Other departments are to be determined by the Business Office and the Purchasing Department Certain controls, however, should be in place for the use of blanket purchase orders: The number of vendors to whom blanket purchase orders are issued should be limited. Those that can make purchases under blanket purchase orders should be clearly designated. Prepared by: Ralph De Los Santos 13 9/29/2015

14 Dollar limits should be carefully observed. Prepared by: Ralph De Los Santos 14 9/29/2015

15 4. EMERGENCY PURCHASES Prepared by: Ralph De Los Santos 15 9/29/2015

16 EMERGENCY PURCHASES Two types of emergency purchases are made in districts. One type results from an eminent threat to the health, safety, or welfare of students. Such purchases must comply with state law and may be made only after a formal board action declaring an emergency and authorizing the purchase. An example of an emergency purchase of this type is the authorization to repair a school after a fire or a natural disaster. Emergency purchases exceeding the dollar amount triggering competitive procurement requirements shall be made in conformance with subsection (h) Section Texas Education Code. The second type of emergency purchase usually is defined by local policy to provide for the acquisition of goods or services to meet an immediate need such as purchases to repair damage to a facility which may imperil students or the security of the facility. For example, if windows are broken at a school by vandals, an immediate need exists to not only secure the building, but also to protect the contents from damage by the elements. This type of emergency purchase is normally utilized after regular business hours or on weekends and holidays. After purchases of this type are made, a purchase order should be issued after the fact on the next business day. Care should be taken that emergency purchases do not result from improper planning rather than from a true emergency. It is important that the district attempts to eliminate emergency purchases for non-emergency situations as much as possible and requires that all emergency purchases be fully justified. Prepared by: Ralph De Los Santos 16 9/29/2015

17 5. ACCOUNTS PAYABLE Prepared by: Ralph De Los Santos 17 9/29/2015

18 ACCOUNTS PAYABLE Accounts payable are those liabilities incurred in the normal course of business for which goods or services have been provided by a third party vendor and payment has not been made as of the balance sheet date. Generally, when a school district receives goods or services and does not immediately pay the vendor, an accounts payable has been incurred. If the vendor will not be paid for more than 60 days or the vendor will not be paid with expendable available resources, a long-term liability rather than an account payable has been created. ACCOUNTS PAYABLE PAYMENTS To maintain compliance with TEA and District guidelines payments are processed on approved purchase orders and receipt of goods and services. To ensure proper and prompt payment to vendors for goods and services the following is needed to process payment and must be submitted to the Accounts Payable department in a timely manner in accordance with the Prompt Payment Act. It is imperative that invoices are submitted to Accounts Payable for payment as they are received. Payments are to be made no more than thirty (30) days from date of invoice. Invoices over thirty (30) days may incur late fees. Items Required for Payment 1. Approved Purchase Order 2. Signed Receiver showing goods and/or services have been received. 3. Original Invoice, please be sure to have purchase order number referenced on invoices. 4. Any contracts, agreements, etc. 5. If required by purchasing guidelines all bids, quotes, etc. In the case of travel payments the following items are needed for payment processing: 1. Approved purchase order 2. Sign receiver by department head or principal 3. Approved travel forms with appropriate signatures 4. Conference confirmation 5. Hotel confirmation 6. Quotes for air travel or rental cars. 7. All items are to be received in the accounts payable department two weeks PRIOR to the date of travel (NO EXCEPTIONS) Prepared by: Ralph De Los Santos 18 9/29/2015

19 PAYMENT PROCESSING Sufficient time to process purchase orders and payments is crucial to the operation of the Accounts Payable department. A two week window is needed for payments to be processed appropriately. Therefore, last minute purchase orders, purchases or contracted services will NOT be processed if not submitted within the allotted amount of time. Accounts payable check processing will be conducted on Wednesdays only and will be ready for pick up after 2:00 p.m. on Thursdays or during normal business hours. 1. Travel Payments: Complete travel forms, purchase orders, and all supporting documentation must be submitted to Accounts payable at least two (2) weeks prior to travel. 2. Last minute travel payments will not be processed for payment. 3. Incomplete travel requirements will not be processed for payment. 4. Always read comments from Accounts Payable and/or Purchasing. AMOUNTS ENCUMBERED ON PURCHASE ORDERS Amounts encumbered on purchase orders must be for the full amount of goods or services needed to be purchased. Freight charges must be included on all purchase orders requiring the payment of freight charges. Amounts entered on purchase orders must be as accurate as possible to ensure no overage charges on individual items. Goods and services shall not exceed the amount approved on the purchase order. An additional purchase order is necessary for any overages on invoices. As stated on the purchase orders no backorders, substitutions, split orders or additions will be allowed. Prepared by: Ralph De Los Santos 19 9/29/2015

20 6. DISTRIBUTION OF CHECKS Prepared by: Ralph De Los Santos 20 9/29/2015

21 DISTRIBUTION OF CHECKS Checks will be processed on Wednesdays only and will be available for distribution after 2:00 p.m. on Thursday during normal business hours. Purchase orders stating checks are to be picked up will be held for a period not to exceed one (1) week from date of check. Checks left in Accounts Payable for a period exceeding one (1) week will be mailed to vendor. At time of pick up a signature and printed name of the vendor is needed. Prepared by: Ralph De Los Santos 21 9/29/2015

22 7. DOUBLE ORDERS Prepared by: Ralph De Los Santos 22 9/29/2015

23 DOUBLE ORDER OF SHIPMENTS In accordance with TEA purchase orders may be submitted only once to vendors. Submitting purchase orders more than once may lead to double orders and are disallowed by the District. In the instances of double orders the vendors will provide evidence of receipt of items, as well as District Warehouse, and items will be charged to the appropriate budget account. In the even a double order is received; notify the Accounts Payable Department immediately. Arrangements shall be made to return the shipment to the vendor to avoid being invoice a second time and all shipping charges incurred will be charged to the requisitioning department or campus. Prepared by: Ralph De Los Santos 23 9/29/2015

24 8. BUDGET ISSUES ON PURCHASE ORDERS Prepared by: Ralph De Los Santos 24 9/29/2015

25 UNAVAILABLE BUDGET In accordance with TEA and District guidelines budgets may not be exceeded when purchasing and/or ordering services. This will result in a violation against both guidelines. If budget dollars are needed to fulfill a purchase a budget change or board approved budget amendment will be required. Prepared by: Ralph De Los Santos 25 9/29/2015

26 9. TRAVEL Prepared by: Ralph De Los Santos 26 9/29/2015

27 TRAVEL PROCEDURES The District s complete travel policy may be found on the District s website. Please be sure to adhere to those guidelines. Upon return from travel all original hotel receipts must be submitted to Accounts Payable immediately following the travel. If a refund is due back to the District for over payments they must be submitted immediately following the travel, these may come directly from the hotel. In the event that receipts and/or refunds are not returned a hold will be placed on the vendor (the individual traveling) and future travel will be prohibited. In the case of travel payments the following items are needed for payment processing: 1. Approved purchase order 2. Signed receiver by department head or principal 3. Approved travel forms with appropriate signatures 4. Conference confirmation 5. Hotel confirmation 6. Quotes for air travel or rental cars. 7. Itemized meal receipts are needed for reimbursement after travel Confirmation that the individual will be attending the event must be given to the Accounts Payable Department prior to check processing to decrease the number of voided travel checks. All school employees will travel on reimbursement basis. Hotel checks are to be made payable to the hotel directly. As well as airfare is to made payable to the travel agency. In the event that the individual cannot attend and a replacement will be sent the original check must be voided and reissued to reflect the individual attending. Under no circumstances may a check be cashed by someone who is not attending and given to the new attendee. In terms of reimbursements all original receipts (including all itemized meal receipts) must be received by the business office for processing. PER DIEM ALOTTMENT Meals: Students: $7.00/meal or less Employee: $46.00/ per day (Reimbursement) Departure times: Breakfast before 6:00 a.m. Lunch return after 2:00 p.m. Dinner return after 7:00 p.m. Mileage: At current mileage rate approved by board with 4 persons per vehicle Prepared by: Ralph De Los Santos 27 9/29/2015

28 HOTEL ALOTTMENT $85.00 per night per person If employee does not want to share a room, the difference in rate will be the employee s out of pocket expense without reimbursement. Host hotel pricing will be honored with documentation from event stating host hotel information. DONNA INDEPENDENT SCHOOL DISTRICT TRAVEL GUIDELINES FOR ADMINSTRATIVE STAFF All employees must notify immediate supervisor to obtain approval if any time out-of-district travel is taken. Position Out-of-District (Region One Area) Out-of-Valley Out-of-State Principals Directors 1 per month or 11 per year 1 per month or 11 per year 1 per year None 1 per year None Counselors 2 per year 1 per year None Nurse 2 per year 1 per year None Sp. Ed. Support Staff Other Adm. (Curriculum Specialist, Assistant Principal, Coordinator) Assistant Superintendent/ Administrator Assistant As needed by immediate supervisor, not to exceed 1 per month As needed by immediate supervisor approval, not to exceed 1 per month 1 per month or 12 per year or as approved by immediate supervisor Superintendent 2 per month 3 per year Note: 1 per year None 1 per year None 2 per year 1 per year As approved by Board Prepared by: Ralph De Los Santos 28 9/29/2015

29 Registration fees will be paid only according to membership rates. Any other travel needs deemed necessary by the immediate supervisor will be considered for approval then submitted to Superintendent for consideration. Staff must prioritize travel needs according to area of assignment. Student Travel (includes Extra-Curricular and Athletics) Student meals, including overnight travel, will be advanced based on board approved per diem allotment per student: Breakfast - $7.00 or less; Lunch - $7.00 or less; Dinner - $7.00 or less. For in valley travel, the Purchase Order method will apply. For out of the valley travel, the per diem advancement for students will be the responsibility of the guardian (coach, teacher, counselor, club sponsor or other school volunteer). Advanced per diems for coaches, teacher, counselor, club sponsor or other school volunteers will be allowed for U.I.L. events only at $12.00 for breakfast, $17.00 for lunch, $17.00 for dinner based on the following: Breakfast Lunch Dinner when departure is before 6:00 a.m. when return is after 2:00 p.m. when return is after 7:00 p.m. The purchasing guidelines must be followed for each request, such as a requisition must be created with all documentation, including a list of the students traveling. Upon return, items to be turned in to the accounts payable dept. are as follows: a list of students checked off with the dollar amount provided and the signature of the student next to the amount as an indicator that he/she received the funds and students must turn in all receipts to the guardian and receipts must equal cash outlay. If more students attend than the list provided, it will be the responsibility of the guardian to provide meals to those students and the guardian will be reimbursed with proper documentation. If the guardian is to pay for the student meals, the guardian must turn in all receipts upon return and if any funds are left, the remaining cash must be returned with all receipts to accounts payable department. Failure to comply will result in calls from the account payable department and the guardian involve would be placed on HOLD which prevents any further checks from being processed. Then calls to your immediate supervisor and if Prepared by: Ralph De Los Santos 29 9/29/2015

30 that fails, the situation will be referred to the Deputy Superintendent for review. Other Student Expenses Lodging and Registration All expenses are paid if an approved travel request is on file. Prepared by: Ralph De Los Santos 30 9/29/2015

31 10. EXPENSE REIMBURSEMENTS Prepared by: Ralph De Los Santos 31 9/29/2015

32 REIMBURSEMENTS Reimbursements for purchases will not be allowed under any circumstances unless previously approved by the Business office in writing. The process of reimbursements leads to violation of purchasing guidelines such as not receiving prior approval for district purchases, unapproved vendors, and/or items to be purchased are not approved. Any purchase made by a district employee will not be reimbursed. This procedure will be strictly enforced. If reimbursement is approved, original receipts will be required. In addition, state taxes will not be reimbursed. Prepared by: Ralph De Los Santos 32 9/29/2015

33 11. VENDOR FILES Prepared by: Ralph De Los Santos 33 9/29/2015

34 UPDATING OF VENDOR FILES Vendor files will be updated with remittance addresses, phone numbers, etc. as the Accounts Payable is made aware of changes. In the instances of contract services, officials, or other vendors specific to departments, the responsibility to submit changes to vendor files falls on the departments using the particular vendor. The appropriate vendor information form must be submitted. Prepared by: Ralph De Los Santos 34 9/29/2015

35 12. VOIDS Prepared by: Ralph De Los Santos 35 9/29/2015

36 VOIDED CHECKS Checks may be voided on a case by case basis. In the event that a campus or departments is requesting a check to be voided a memo stating the request and the reason for the request, and check information must be submitted to the Accounts Payable department. The memo must be signed by the principal or department head. If a request is being made to reissue the payment the following items are needed. 1. Memo from department or campus with the stated information. 2. Requisition for the replacement of the check. a. Please state within the requisition the check number that is being replaced and the reason for the reissue. 3. The corrected information submitted to Accounts Payable. VOIDED P.O.S Require a memo stating the reason for the P.O. to be cancelled. In addition, the memo must notify the Accounts Payable department, if the order has been previously placed. This is needed in order for the vendor to be contacted regarding the cancellation. All copies of the P.O. must be submitted to the Accounts Payable department. Prepared by: Ralph De Los Santos 36 9/29/2015

37 13. CREDIT CARD VENDORS Prepared by: Ralph De Los Santos 37 9/29/2015

38 CREDIT CARD VENDORS PURCHASE ORDERS Open purchase orders are disallowed when using vendors such as Wal-Mart and H.E.B. Purchase orders must be itemized including items and prices. Only items requested are to be purchased. Purchase orders will be closed at time of payment. These purchase orders may not be used multiple times they are for single use. Wal-Mart and H.E.B. purchase orders 1. When requesting the corresponding credit cards, an original purchase order must be present at the time of credit card pickup. 2. Purchase order must be presented to vendor at time of purchase plus the credit card. 3. Original receipts and credit cards are to be returned to Accounts Payable immediately following the use of cards. 4. Under no circumstances may a credit card for these vendors be issued overnight. 5. Credit cards are on a first come first serve basis; a limited amount of cards are available. Prepared by: Ralph De Los Santos 38 9/29/2015

39 14. SALES TAX Prepared by: Ralph De Los Santos 39 9/29/2015

40 TAXES The District is exempt from paying sales tax. Therefore, at the time of purchases a sales tax exemption certificate must be presented to the vendor. A tax exempt certificate will be provided on purchases done with an approved purchase order. Ruling No from the State Comptroller, effective October 1, 1969 states: "The sale, lease or rental of tangible property directly to or for storage, use or other consumption of tangible personal property directly by an educational organization...., which property is necessary to its function as such, and paid for by the organization is exempted from the computation of (state and local sales) taxes." Provisions under Article of the Federal Statutes provide tax exemption to the School District. In accordance with these rulings: 1. TAX FREE PURCHASES: All items purchased by a public school, school district or non-private school for the schools own use qualify for an exemption from sales tax if the items purchased relate to the educational process. The school, school district or authorized agent should provide the seller with a Texas Sales Tax Exemption Certificate (Form J). To be valid the certificate must state that the merchandise being purchased is for the organization's own use in providing education, is being made in the name of the organization, and that payment shall be made from the organization's own funds. Purchases for their own use by individuals, even though connected with a school or school organization, are not exempt from the tax. Examples - cheerleaders purchasing their own uniforms, band members purchasing their own instruments and athletic teams purchasing their own jackets. 2. EXEMPT SCHOOL ITEMS: Public and non-profit private schools and schoolrelated organizations need not collect sales tax on the following: a. Fees and admission tickets, including football and drama tickets b. Club memberships c. Deposits d. Sales of food and soft drinks sold during a regular school day, subject to an agreement with the proper school authorities e. Sale of whole cakes or pies f. Food and drinks sold at PTA carnivals 3. EXEMPT FOOD SALES: The sales tax is not collected on meals and food products, including candy and soft drinks, served in an elementary or secondary Prepared by: Ralph De Los Santos 40 9/29/2015

41 school during the regular school day by a school, student organization or PTA subject to agreement with school authorities. This exemption from the sales tax applies to guests, employees, or teachers served in a school cafeteria or teacher's lounge during the regular school day. The sale of food, including candy and soft drinks, is exempt from the sales tax when sold by an organization associated with a public or non-profit private elementary or secondary school (4-H clubs, Future Farmers of America, Future Homemakers, etc.) if: a. The sale is part of a fund-raising drive sponsored by the organization; and all net proceeds from the sale go to the organization for its exclusive use. Prepared by: Ralph De Los Santos 41 9/29/2015