The state audit delivered March 20 found a variety of financial matters that needed to be straightened out in the operations of the South Dakota High School Activities Association. The board of directors finished adopting policy changes last week to correct some of the situations, including a meals policy for employees and a credit-card policy.
Employees will be reimbursed at standard rates that will be the same as directors; the employee reimbursements previously have been actual cost using the association credit card. For non-overnight trips, the meal reimbursements will be treated as taxable income, which is required by IRS regulation. The changes align with standard practice elsewhere for government and government-related organizations in South Dakota.
The audit found the association’s credit card was used to purchase 24 tickets to a Boston Red Sox baseball game costing $1,866.80 on May 20, 2014. Reimbursements to SDHSAA reportedly were to be made by people who used the tickets, but none had been made as of Jan. 27, 2015. The audit report said the association’s central office then requested reimbursements. The official policy adopted last week by the board calls for the credit card to be used for official association purchases and acquisitions. The policy specifies the authorized items:
Office/tournament supplies, computer supplies, utility, and office equipment
maintenance, safety equipment or supplies, catering or small dining services, travel
expenses such as conference registration fees, lodging, meals, and airline tickets, fuel for
Association vehicles, and car rentals (car rentals must be pre-approved by the Executive
Director). In addition, credit card purchases are allowable for meals during corporate
partner, state event director, legislative, Board of Directors, and administrative meetings.
There also now is a $1,000 limit; larger amounts need the executive director’s authorization. If the board of directors disallows a charge, the employee must reimburse the association.