Policy 725 - Liability Insurance for Parent Volunteer Organizations

I.    PURPOSE

The purpose of this policy is to incorporate under the District’s general liability insurance plan members of parent volunteer organizations who support the curricular or extra curricular activities of District students by offering District provided financial administration of their organization within the District’s Trust and Agency Fund.

II.    GENERAL STATEMENT OF POLICY

The District’s general liability policy provides coverage for both volunteers and employees. A volunteer organization is covered by the District’s general liability policy if the organizational finances fall under the District’s financial umbrella. To incorporate the organization into the District’s financial umbrella, if so requested by the organization, the District will provide banking, accounting, and financial reporting services for parent volunteer organizations directly serving the students of the District, such as a PTO/PTA chapter, an athletic organization providing a program for the youth of the District, or a parent volunteer group organized to provide support to a specific student activity. By incorporating the financial operation of a parent volunteer organization under the financial management of the District, member volunteers of the parent volunteer organization are insured under the District’s General Liability Policy as a volunteer.

III.    REQUIREMENT

  1. Each organization participating must have as its primary mission service to the youth of the Minnetonka School District.
     
  2. Participation in this service by the parent organization is voluntary. A separate trust fund account will be maintained for each organization.
     
  3. Approval by the School Board is required prior to providing financial services and accepting funds. When approved by the School Board an account will be set up immediately to receive the funds.
     
  4. The organization must transfer 100% of it funds to the District trust account. No funds are to be maintained by the organization other than a petty cash account not to exceed $400.
     
  5. Revenue, when collected is deposited in the organizational trust account maintained in the Business Office; and expenses, when paid, are expended from that same account.
     
  6. Funds deposited in a District trust account shall be used for purposes consistent with the state law.
     
  7. Each organization shall have a District administrative liaison. The District administrative liaison shall make certain that funds are used consistent with the Vision and Mission of the Minnetonka School District. All expenditures are subject to approval by the School Board.
     
  8. Expenses to be paid from an organizational account must be signed by the District administrative liaison to the organization. For example, expenses to be paid from a PTO account must be signed by the respective building principal.
     
  9. The District’s liability coverage shall extend to all organizational activities except those activities in which the District by state law is not permitted to participate. For example, if an off campus fund raising activity includes the serving of alcohol it will be necessary for the organization to obtain separate liability insurance to cover the serving of alcohol.

IV.    IMPLEMENTATION

The School Board places responsibility for administration of this policy with the Superintendent and the Executive Director of Finance and Operations.

Adopted:
Based on Rule G-2, Trust Funds – Combining PTO/PTA Finances, dated September 8, 1995

Reference:
Minnetonka Policy #730, Liability Indemnification

Approval: January 18, 2007