Cal State LA Student Organization Funds Administration Policy
100 – Overview
Student organizations are established in accordance with Administrative Procedure (AP) 802 entitled University Recognition of Student Organizations. AP 802 requires student organizations to adhere to the established written policies and procedures with the University-Student Union (U-SU) governing the administration of student organization funds. This U-SU policy outlines the requirements governing the administration of student organization funds with the U-SU. Student organization account holders are required to fully comply with the requirements of this policy in order to open and maintain their accounts with the U-SU.
Cal State LA requires all student organizations to self-report on compliance to Integrated California State University Administrative Manual (ICSUAM) 3141.01, Administration of Student Organization Funds, by acknowledging awareness of and compliance with policy as part of the annual submission of the Student Organization Officer Information Form to the Center for Student Involvement (CSI).
200 – Authority
Per EO 731 –Designation of Chief Financial Officer, the Vice President for Administration and Chief Financial Officer (VPA-CFO) is responsible for the business and financial affairs of the institution. Vice President for Student Life (VPSL) or designee outlined in Cal State LA AP 802 entitled University Recognition of Student Organizations has oversight of chartering and recognition of student organizations per California State University (CSU) Executive Order (EO) 1068.
300 – Funds Administration
- All student organization events must be registered through CSI by completing an Event Registration Form, which includes event guidelines necessitating adherence to all University policies.
- Funds collected in the name of the student organization must be maintained in a U-SU Student Organization Account (SOA) and do not collect interest. Administration of Student Organization funds by U-SU is conducted at no charge.
- Cal State LA does not allow student organizations to maintain off-campus bank accounts. Exceptions to the on-campus banking requirement and other funds administration rules may be granted by the VPA-CFO on a case-by-case basis by submitting an Exception Request Form.
- Student organization accounts cannot be used to hold funds on behalf of other student organizations. Funds may be held by a student organization on behalf of another external organization only on a temporary basis in conjunction with a fundraising event where a check for the proceeds will be issued to the outside organization. For example, a student organization has a fundraiser for the American Red Cross where funds will temporarily remain in the student organization’s account until the net proceeds from the event are reconciled and a check request is submitted to remit the funds to the Red Cross.
- Funds held on behalf of student organizations will be recorded on the balance sheets of the U-SU according to accounting principles as regulated by the CSU accounting standards. Revenue and expenses are to be recognized in the financial records of the U-SU.
- All recognized student organization funds must be collected and used in relation to programs and services that are connected to the goals and objectives of the student organization (AP 802 section 7.10).
- Funds officially collected in the name of a recognized student organization may include:
- ASI Club Funding - Proceeds from student fees administered to clubs and organizations by the Associated Students, Inc. (ASI). Student organizations follow all ASI requirements to apply, track and receive funds.
- Proceeds to benefit - Funds raised through item sales (bake sales, t-shirt sales), dance-a thons and tickets/audience participation fees or similar means. These are not tax deductible.
- Donations/fundraising - Direct monetary donations, in-kind donations of supplies or services, large event revenues, solicitation campaigns. MUST be pre-approved through the Office of Annual Giving and may have tax implications, see section 8 below.
- Membership dues/fees as outlined in the organization’s constitution and/or bylaws.
- The solicitation, acceptance, and deposit of donations and contributions are governed by University policy. The Cal State LA Foundation (Foundation) is authorized, per a Master Agreement, to issue tax receipts on behalf of the University for the student organization.
- Student organization funds may not be raised through the sale of alcohol or tobacco products, nor may they be used for the purchase of alcohol or tobacco products.
400 – Cash Handling
Collection of cash and cash equivalents by student organizations must follow rigorous internal control and records keeping procedures of the U-SU according to the University’s cash handling policies as an approved cash handling satellite location of the University.
500 – Responsibilities
- The VPA-CFO has the responsibility of financial oversight over student organizations. The VPSL has the responsibility of oversight of compliance by student organizations to University AP 802 and CSUEO 1068.
- U-SU administers student organization funds.
- The solicitation, acceptance, and deposit of donations and contributions are governed by University policy. The Foundation is authorized, per a Master Agreement, to issue tax receipts on behalf of the University for the student organization.
- Officers of a student organization are responsible for the financial solvency of their organization, including fiscal or financial liabilities arising from the organization’s private programs or events that are not officially registered with and sanctioned by the University or its Auxiliary Organizations.
600 – Student Organization Funds Administration Agreement
Each student organization account administered by the U-SU will have a signed Student Organization Account Application including the student organization agency fund administration agreement.
700 – Tax Implications
- U-SU will meet applicable regulatory reporting requirements pertaining to such transactions, including the inclusion of the financial activity in tax filings.
- Donations will be receipted by the University Advancement Division according to University Advancement’s policy and reconveyed to U-SU as per Section 300 of this policy.
- The U-SU act as fiscal agents for student organizations on programs or events that are officially registered with and sanctioned by the University through CSI.
- Student organizations are responsible for fiscal or financial liabilities arising from their private programs or events that are not officially registered with and sanctioned by the University or its Auxiliary Organizations.
800 – Appendices
- Student Organization Officer Information Form.
- Student Organization Account Application.
- Request for Banking Exception.
- Student Organization Event Registration Form.
- University-Student Union Deposit and Expense Procedure.