HUTCHINSON, Kan. — The Hutchinson School District is suing a Missouri-based company in a dispute over proceeds from a student fund raising effort.
USD 308 filed the lawsuit back on Aug. 5 against Education Funding Group in Reno County District Court. The district claims it didn’t receive its share of proceeds from a fundraiser held during the last academic year. It’s estimating the loss between $11,000 and $15,000.
The Hutchinson district signed a contract with the business in October 2013 for a fundraiser during the 2013-2014 school year in which students in the district would sell $10 cards with discounts at local merchants in the area. Under the agreement, the district and company were to evenly split proceeds from the discount cards, meaning the schools would receive $5 on each sale.
The company was also expected to be responsible for all the accounting for the fundraiser and at the end of the fundraising campaign would provide the district with the number of discount cards sold district wide as well as at each school and the revenues from each card. Also, any discount cards that were not sold were to be the property of the district.
To date, they have not received an accounting of the cards sold, the revenues or the remaining cards which they say would now be worthless because discount cards like these usually expire after one year.
They want the court to order the accounting, revenues from the cards sold, the lost value of the cards that were not sold plus ten percent prior to any prejudgment being given in the matter.
The company of course denies any wrong doing with regards to the contract with the district.