2014-2015 Booster Club Training

1. 2014-2015 Booster Club Training Online At: http://www.comalisd.org/Departments/Business_Services/Booster_Club_PTA.asp

2. Where Can I Find This Presentation?

3. Comal ISD Mission Statement Comal ISD, where we encourage collaboration and communication, promote critical thinking, embrace high standards of accountability, and establish a winning tradition through perseverance and grit.

4. Booster Club Formation • Comal ISD booster clubs must be a 501(c)3. • A non-profit organization is created by filing articles of incorporation with the Secretary of State. • Form 202- Articles of incorporation Pursuant to Article 3.02 Texas Non-Profit Corporation Act. • www.sos.state.tx.us

5. Tax Exemption • Federal Tax Exempt Status • Form 1023 - Application for Recognition of Exemption Under Section 501(c)3 • IRS Publication 557 - How to Apply for Recognition of Exemption for an Organization; • Form 8718 – User Fee for Exempt Organization Determination Letter Request • District Requirement; • Determine annual necessity of filing Form 990 – Return of Organization Exempt from income tax. • State Tax Exempt Status • Written request to State Comptroller’s office for exemption from sales and franchise tax.

6. Organization • Each booster organization must develop and maintain bylaws; • Rules of membership • Establish fiscal year • Organizational Structure • Method for electing officers • Only members in good standing will be permitted to hold office or vote • District employees shall not serve in financial capacity

7. Organization • Standards for Meetings • 72 Hour notice • Campus designee must be present • Election of Officers • Officers will be elected annually; • Officers are typically elected by May of each year; • Officers will be elected by method set forth in bylaws; • No officers should be appointed without input and approval from membership.

8. Organization President Preside at all meetings; Resolve membership issues; Select designee to receive bank statement, this person cannot be a signer on the account; Schedule annual audit. Vice President Preside at meetings in absence of president; Perform administrative functions delegated by president; Election of several vice presidents may be necessary for larger clubs.

9. Organization • Secretary • Responsible for keeping records of proceedings and reporting them to the membership; • Must have thorough knowledge of parliamentary law and organization’s bylaws; • Maintain records; • Maintain attendance records. • Treasurer • Custodian of all funds; • Chairperson of budget and finance committees; • Issue receipts and deposit monies collected; • File annual financial reports • Maintain detailed account of all monies received and dispersed; • Bank statement reconciliation; • File sales tax reports.

10. Organization • Audit Committee • Verify the accuracy of the treasurers financial reports; • Ensure cash balances are accurate; • Determine if established procedures have been followed; • Ensure that expenditures occurred in manner consistent with bylaws; • Ensure all revenues have been properly received and recorded; • Cannot include members involved in day-to-day financial activities.

11. Financial Information • General • Must establish checking account at local institution; • Checks should require the signature and authorization of two officers; • Debit card use is strictly prohibited. • Financial Reporting to District • End-of-year financial statements must be submit to Comal ISD’sDistrict Staff Accountant by June 15 each year.

12. Financial Information • Cash Receipt Procedures • All funds must be supported • Deposits must be made daily if total receipts on hand exceed $250, and at least weekly if total receipts are less than $250; • Check booster club manual for deposit procedures. • Petty Cash • Small petty cash account; • Cash should be kept in a locked box; • Should be used for emergency purposes only; • All receipts must be retained.

13. Financial Information • Bank Reconciliation • Bank statement balance must be reconciled to the general ledger balance monthly; • Check booster club manual for reconciliation instructions. • 1099 Requirements. • Payments for services in excess of $600; • IRS form W-9; • Form 1099 must be issued to all qualifying vendors by January 31st.

14. Financial Information • Disbursement of Funds • Budget of anticipated expenditures • Disbursements outside the scope of budgeted line items should require a vote • Supporting documentation • UIL compliance • Direct payment to district employees and purchase of alcoholic beverages is prohibited

15. Fundraising • Prior to the start of the school year, booster organizations shall submit a fundraising application for each anticipated event, and receive approval from the campus principal. Application includes: • Vendor information (if any); • Product or service; • Estimated proceeds.

16. Fundraising • Individual Accounts • Booster clubs shall not maintain individual accounts; • Booster clubs cannot require a member to participate in a fundraising activity; • Nor can members be required to raise or sell a certain amount; • These practices jeopardize the organizations tax-exempt status with the IRS.

17. Fundraising • Raffles • Booster clubs are permitted to hold raffles. However, raffles are subject to the guidelines presented on page 11 of the booster club manual. • Bingo • A booster organization should consider all applicable regulations for bingo. Detailed rules may be obtained from the Texas Lottery Commission.

18. Sales Tax • Exempt from sales tax on purchases; • Must collect sales tax when conducting sales; • Tangible personal property is subject to sales tax; • Each booster club is entitled to two tax-free sale days per calendar year.

19. Sales Tax Examples of Taxable Sales Art – supplies and works of art Artistic – CD’s, videos Rings and other jewelry Band – equipment, supplies, uniforms, etc.Rummage yard sales Books – novels, workbooks, vocabulary School athletic programs (when we are the seller) Spirit items Brochure items Stadium seats Clothing Supplies Decals Uniforms – dance, cheer, etc. Copying, printing, laminating Flowers – roses, poinsettias Greeting cards Handicrafts

20. Sales Tax Booster clubs need not collect sales tax on the following: • Admission tickets • Club Memberships • Food and drinks sold at school functions • Banquet tickets Further information can be found on the Texas Comptroller’s website: http://www.window.state.tx.us/taxinfo/sales/

21. Donations • School district staff shall not accept or solicit any gift, favor, service, or other benefit; • Gifts to students • Donations to the district, will become sole property of the district; • Donations will be earmarked for a specific purpose; • Tax deductible donations.

22. Scholarship Programs The district requires the implementation of any scholarship programs to be consistent with all other district scholarship programs. Some key points are: • Committee members cannot have a conflict of interest; • Decision making criteria must be made available upon request; • All qualifying seniors must have a chance; • Additional information can be found on page 16 of the booster club manual.

23. Campus Facilities Improvement • Building improvements projects need to be requested through the submission of the Facility Improvement Request form. • Approval Process • Campus • CISD Facilities Department

24. District Services • Armored Car Service- not available to booster clubs • Employer Identification Number- not available to booster clubs • Safekeeping- booster clubs may not store funds on campus for safe keeping

25. Reminders • Failure to follow policies and procedures of the District may result in refusal by the campus principal to allow related activities on campus; • All meetings shall be public and announced in advance in accordance with bylaws; • The campus administrator or designee must be present at all booster meetings; • There will be no student activities in the name of the school organization or booster organization unless prior permission has been received from the sponsor and the principal or the sponsor is present; • No cash will be given to any school employee to use at his or her discretion.

26. Suggested Audit Program • Bank Reconciliations • Bank Statements • Receipts • Disbursements • Fundraisers • Miscellaneous

27. Common Forms Used Confirmation of Financial Information Financial Statements Fundraiser Request Form Booster Club Guidelines Manual Receipt Facility Improvement Request Annual Survey of Financial Support

28. Booster Club Forms CISD Supporting Organizations Confirmation of Financial Information

30. Booster Club Forms Financial Statements

32. Booster Club Forms Fundraiser Request Form

34. Booster Club Forms Guidelines Manual Receipt

36. Booster Club Forms Facility Improvement Request

38. Booster Club Forms GASB #39 Annual Survey of Financial Support

40. District Reporting Requirements • Copy of bylaws – September 30th • List of officer positions, names, and contact information - ASAP • End of year financial statements – June 15th • GASB#39 Annual Survey of Financial Support – June 15th • Audit committee report – July 15th

41. Booster ClubCONTACTS David Andersen, Chief Financial Officer Ext. 2090 Kathy Hanlon, Director of Business Services Ext. 2021 Norma Friddle, Interim Director of Finance, Budget, & Internal Review Ext. 2074 Justine Abel, Staff Accountant Ext. 2034

42. The End