FFA chapters and advisors, make sure you are depositing those fundraising checks and keeping accurate records. The Iowa State Auditor has launched an investigation after a school district reported more than $20,000 not deposited from FFA fruit sales over the past six years.
The special investigation was requested by Maquoketa Community School District officials after concerns were raised that proceeds from a FFA fruit sale fundraiser were not properly collected and deposited by the District’s FFA advisor. State Auditor Mary Mosiman reported the special investigation has identified an estimate of $20,138.45 was uncollected or undeposited for the period July 1, 2011 through June 30, 2017.
Mosiman also reported it was not possible to determine if additional collections from fundraisers were not properly deposited during the period reviewed because
adequate records were not available.
According to District officials, the fruit sale fundraiser is the primary fundraiser for the Maquoketa FFA. Students take orders for fruit from community patrons and the FFA advisor orders fruit from a vendor. Students are responsible for collecting cash and checks at the time of sale, submiting collections to the FFA advisor, and delivering fruit when it is received from the vendor.
The FFA advisor is responsible for tracking purchases and collections received, as well as depositing collections with the Central Office or building secretary. This report includes recommendations to strengthen the District’s internal controls and overall operations, such as improving segregation of duties, ensuring all fundraising events are properly approved, and requiring sufficient supporting documentation for all fundraising activities and disbursements.
In addition, the report includes a recommendation to ensure the student activity funds are operating properly and all fundraiser receipts are properly deposited based on the manner in which they were solicited.
Copies of this report have been filed with the Division of Criminal Investigation, the Jackson County Attorney’s Office, and the Attorney General’s Office.