ELGIN ISD Booster/Parent Organization Training 9/14/15 1

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1 ELGIN ISD Booster/Parent Organization Training 9/14/15 1

2 Elgin ISD Mission Statement The mission of Elgin ISD is to ensure a high-quality education that guarantees a life-changing experience for all. 9/14/15 2

3 Board Policy GE Local Board oversight Follow District guidelines Operate for the benefit of school and students Board and administrative right to disband 9/14/15 3

4 Booster/Parent Organization Formation Officers and By-laws Elected Board of Officers Established by-laws for governance By-laws and established school board policy and administrative guidelines By-laws reviewed annually 9/14/15 4

5 Booster/Parent Organization Formation Must incorporate and obtain 501(c)(3) non-profit status with the IRS Benefits Texas sales tax exemption (must apply for it) Liability protection of officer s personal property Reduced insurance rates Exempt from income tax Exempt from filing of Form 990 tax return when receipts are <$25k Tax deductible contributions for donors Raffles (re: Attorney General handout) 9/14/15 5

6 Booster/Parent Organization Formation Formation Steps: Elect Officers, create bylaws, and prepare and sign Articles of Incorporation File articles of incorporation with the Secretary of State - Form 202 Obtain Employer Identification Number (EIN) - IRS form SS-4 IRS prohibits use of the District s EIN Apply for sales tax permit Texas State Comptroller 9/14/15 6

7 Booster/Parent Organization Formation Request federal tax exempt status as a 501(c)(3) organization Complete IRS form 1023 and form 8718 and pay the required fee No fundraising without IRS letter of 501(c)(3) status Apply for sales tax exemption with Texas State Comptroller s office for purchases must have 501(c)(3) status first Write Texas State Comptroller s office for franchise tax exemption 9/14/15 7

8 State and Federal Agency Contact Information Texas State Comptroller s Office Austin Office Exempt Organizations Department Ext Website Sales tax info. website Internal Revenue Service Main Number Tax Exempt Organizations Tax Forms and Publications IRS Home Page Tax-exempt website info. Tax Forms and Publications website 9/14/15 8

9 Organization Each booster/parent organization must develop and maintain bylaws Only members in good standing will be permitted to hold office or vote District employees shall not serve in financial capacity or hold office Actions recorded in meeting minutes Meeting standards 72 hour notice Sponsor or admin. attendance required 9/14/15 9

10 Organization Election of Officers Annually typically in May Established method in by-laws Input and membership approval of all officer appointments 9/14/15 10

11 Organization Annual Audit Committee Recommended 3 members, minimum of 2 SHOULD NOT BE members involved in day-to-day activities of organization Verify accuracy of Treasurer s financial reports and cash balances Adherence to established procedures Expenditures consistent with by-laws and budget Revenues received and recorded properly 9/14/15 11

12 Financial Information Checking account at local institution 2 check signers No debit cards Financial Reporting to CFO of District End-of-year financial statements by June 15 th GASB 39 Annual Survey by June 15 th Financial Goals and Revenue/Expenditure Budget - by October 1 st 9/14/15 12

13 Financial Information Cash Receipt Procedures Supporting documentation required Deposits made daily >$250, at least weekly <$250 Detailed deposit procedures in manual Count cash with a witness Keep long term data on fundraisers 9/14/15 13

14 Financial Information Disbursement of Funds Purchases not budgeted should require vote prior to purchase Supporting documentation required UIL compliance see UIL guidelines Read and follow guidelines Direct payment to district employees and purchase of alcoholic beverages prohibited 9/14/15 14

15 Fundraising Before Oct. 1 st of the school year and 30 days prior to any fundraising event, fundraising applications for each event must be approved by the principal. Application includes: Vendor information Product or service Estimated proceeds 9/14/15 15

16 Fundraising Individual Accounts No individual accounts allowed Members cannot be required to participate in fundraisers Members cannot be required to raise or sell a certain amount These practices jeopardize the organizations tax-exempt status with the IRS 9/14/15 16

17 Sales Tax Exempt from sales tax on purchases Must collect sales tax when conducting sales Items which become personal property are not exempt Two tax-free sale days per calendar year 9/14/15 17

18 Sales Tax Examples of Taxable Sales Art supplies and works of art Artistic CD s, videos Band equipment, supplies, uniforms, etc. Books novels, workbooks, vocabulary (when we are the seller) Brochure items Clothing Decals Copying, printing, laminating Flowers roses, poinsettias Greeting cards Handicrafts Rings and other jewelry Rummage yard sales School athletic programs Spirit items Stadium seats Supplies Uniforms dance, cheer, etc. 9/14/15 18

19 Sales Tax Do not collect sales tax on the following: Admission tickets Club Memberships Food and drinks sold at school functions Banquet tickets For further information see the Texas Comptroller s website: 9/14/15 19

20 Donations School district staff shall not accept or solicit any gift, favor, service, or other benefit reasonably construed to interfere with discharge of duties Donations to the district, will become sole property of the district Donations will be earmarked for a specific purpose Gifts to the district must meet the criteria listed in the District guidelines (page 19) All Donations should be submitted to the Business Office with appropriate form 9/14/15 20

21 Scholarship Programs See page 20 in the booster/parent organization manual for scholarship program requirements. 9/14/15 21

22 Campus Facilities Improvement Building improvement project requests - complete Facility Improvement Request form Advance Approval Required 9/14/15 22

23 District Services District Employer Identification Number - not available to booster/parent organizations Safekeeping - booster/parent organizations may not store funds on campus for safe keeping 9/14/15 23

24 Reminders Failure to follow policies and procedures of the District may result in refusal by principal to allow related activities on campus All meetings public and announced in advance Campus sponsor or administrator must be present at all booster/parent meetings No student activities in the name of the booster/parent organization unless prior approval received from the sponsor and the principal or sponsor is present No cash will be given to any school employee to use at his or her discretion 9/14/15 24

25 District Reporting Requirements Copy of updated bylaws annually List of officer names/positions/ addresses annually Signed Manual Receipt Form End of year financial statements by June 15th Audit committee report at close of fiscal year GASB#39 Annual Survey of Financial Support by June 15th Financial goals and budget by October 1st 9/14/15 25

26 EISD BUSINESS OFFICE CONTACTS Debra George, Chief Financial Officer ext Kim Pruneda, Special Revenue Accountant ext Renee Jonse, Staff Accountant ext Questions??????? 9/14/15 26