Danbury Independent School District. Booster Club Operating Manual

Transcription

1 Danbury Independent School District Booster Club Operating Manual

2 Booster Club Operating Manual Table of Contents A. B. Contact Information Role of Booster Clubs 1 -District Booster Clubs should 2 -District Booster Clubs should not 3 C. Booster Club Guidelines 4 D. Concession Stand Operations 5 E. Fund Raising Activities 5 F. Audit Instructions 6 G. Tax Information -How to obtain the tax exempt status 501 (c) (3) -How to obtain an Employer Identification Number (EIN) -Federal Reporting Sales Tax H. Bank Account 8 I. Forms -Booster Club Fundraiser Request -Example of Booster Club Audited Financial Report J. Link to IRS Forms 12 K. UIL Booster Club Guidelines Danbury Independent School District 5611 Panther Drive Danbury, Texas 77534

3 Booster Club Contact Information Business Office: Greg Anderson, Superintendent Glenda K. Moore, Director of Business Services Cynthia A. Wendel, Accts. Payable/Activity Funds Danbury High School/Danbury Middle School: Jon Hill, Principal Crystal Pounds, Asst. Principal Jimmy Thomas, Athletic Director Linda Sheffield, Band Director Mitch Robinson, FFA Sponsor Bonnie, Filipp, Secretary to the Principal Danbury Elementary School Carol Shefcik, Principal Kari Smith, Asst. Principal Paulette Overton, Secretary to the Principal This document provides guidelines which govern all Booster Club activities related to UILsponsored competition. Since the UIL regulates and governs what participants, sponsors, and coaches may and may not accept, it is very important Booster Club members and parents are aware of these guidelines. The additions in this manual are specific to Danbury ISD Booster Clubs. Guidelines from UIL will supercede any discrepancy between this manual and the link above. Important note: Booster Clubs at Danbury ISD will exist at the high school level only. 3

4 Role of Booster Clubs Booster clubs shall organize and function in a way that is consistent with the District s philosophy and objectives and within adopted Board policies. Booster club officers are solely responsible for ensuring that their booster club is in compliance with District policies and guidelines, UIL guidelines, and state and federal regulations. The District, including any District employee, is not responsible for a booster club not complying with the various policies, guidelines, and regulations. District Booster Clubs shall: 1. Be voluntary and provide unified support for student activities of the school. 2. Encourage involvement by all parents of students participating in the supported activity. 3. Use school facilities only with prior approval of the principal or designee. 4. Obtain approval of the Superintendent for all fundraising activities. 5. Submit a copy of current adopted bylaws and operating procedures to the Superintendent. 6. Submit a copy of the annual audited financial report to the Superintendent no later than August 1 st following the end of the fiscal year. The financial report shall not be audited by the District. 7. Submit the name, address, and telephone number of all current officers and the authorized signers of the bank account to the Superintendent. Two signatures are required on all checks. 8. Provide evidence adequate insurance coverage for activities conducted on school premises. The District cannot provide insurance coverage for booster clubs. 9. Pay all taxes and other debts incurred by the organization. 10. Comply with administrative regulations and Board policies when donating money or gifts to the District. 11. Comply with UIL guidelines, District policies, and Federal and State tax laws. 12. Obtain the tax exempt status 501(c)(3). This only needs to be done once. 13. Obtain an Employer Identification Number (EIN). This only needs to be done once. 4

5 5 District Booster clubs shall not: 1. Have authority in directing or influencing District employees in the administration of duties. 2. Be involved in decision or policy making activities for a student group. 3. Give a sponsor or coach a gift or cash in excess of the limits imposed by the UIL guidelines from any source in recognition of, or appreciation for coaching, directing or sponsoring student activities. 4. Give anything (including awards) to students without prior approval from the school administration. (Faculty sponsor s wish-lists should have received prior approval from school administration before submission to boosters.) 5. Give a member any gift without the approval of the club membership. 6. Employ or pay any member for services rendered with booster club funds. 7. Direct, employ, contract, supplement or in any way compensate a consultant, clinician, accompanist, or paraprofessional for work performed for the student activity without prior approval from the Superintendent. 8. Sign contracts or pay expenses directly from booster club accounts for any arrangements for student travel associated with the organization without the prior approval of the Superintendent. (Booster groups/individuals may donate money/merchandise to the school with prior approval of the administration.) 9. Have a District employee serve in a capacity over the organization s financial affairs, including an authorized signer on the bank account. 10. Use the District tax identification number as the booster club identification number. 11. Use the District or school address for any booster club correspondence. The IRS and the Texas Comptroller s Office recommend obtaining a PO Box to use as the official mailing address. 12. School employees and/or students may not work for booster club events/fundraising during school hours. 13. Sell raffle tickets on any District properties. Check requirements from the Texas Attorney General to see if your club may hold raffles.

6 Booster Club Guidelines Meals the District has a standard student meal allowance per person per meal. Additional amounts are not to be supplemented from the booster club without prior approval of the Superintendent. Before fundraisers the booster club president should check with the campus Principal and Superintendent to be sure that an activity club has not planned a fund raiser to sell the same items. The activity club will have priority over the booster club. Example: Yearbook plans to sell cookie dough Booster club may not sell cookie dough at the same time. This is in direct competition with our students and negates the purpose of raising funds. Booster clubs may not operate fundraisers on or inside our campuses except as approved by the campus Principal and Superintendent. If approved, a table may be set up in a hallway or designated area to avoid disturbing students and employees. Club members are to attend the sales at designated times (before and after school, and during lunch). Club members are responsible for sales, not students or faculty members. If a booster club donates gifts to a student group or to the school, it must have prior approval of the Superintendent. Once a gift is approved and presented, it becomes the property of the school district and must be added to our inventory. All out-of-state student trips must have prior approval of the School Board. Booster clubs may not use the tax identification of the school district. The club may apply for their own ID for tax exemption purposes. Remember Booster clubs are formed for the sole purpose of supplementing student and program needs as outlined in UIL guidelines. As a non-profit group, excess funds should not be held in bank accounts for long periods of time. The booster club annual financial report is now a Texas Education Agency requirement to be included with the District s annual audit. A copy of the form and the letter is attached. Please return by August 1 st. 6

7 7 Election of Officers Employees of the District shall not serve in a financial capacity of a booster or other parent organization. Financial capacity includes holding positions as treasurer, fundraising chairperson, or serving as a check signer. Individuals elected to officer positions in a booster club must have a child actively involved in a Danbury ISD program. At a minimum, the booster organization shall elect the following officers on an annual basis. Each officer should receive a printed copy of the manual. Each officer must read the manual and return a signed acceptance form to the campus principal before the first meeting of the new school year. President - Typically, the president of a booster organization is an individual who has previously been active in the organization. The major duties include, but are not limited to, the following: Preside at all meetings of the organization. Regularly meet with the designated campus representative regarding booster activities. Resolve problems in the membership. Regularly meet with the treasurer of the organization to review the organization s position. Select an officer as the designee to receive bank statements through the mail at their home address. This individual shall not be a signer on the account. Upon receipt, the designee should review the activity on the bank statement and canceled checks for reasonableness. This provides an independent review by an individual not associated with disbursement activity. Schedule annual audit of records or request an audit if the need should arise during the year. Vice-President - The vice-president acts as the president s representative in his/her absence. They must remain familiar with the organization. The major duties include, but are not limited to, the following: Preside at meetings in the absence or inability of the president to serve. Perform administrative functions delegated by the president. Secretary - The secretary is responsible for keeping accurate records of the proceedings of the association and reporting to the membership. The secretary must ensure the accuracy of the meeting minutes and have a thorough knowledge of parliamentary law and the organization s procedures. The major duties include, but are not limited to, the following: Report on any recommendations made by the executive board of the booster organization if such a governing board is defined. Maintain the records of the minutes and any standing committee rules, current membership and committee listing. Record all business transacted at each meeting. Maintain records of attendance of each member. Conduct and report on all correspondence on behalf of the organization.

8 8 Treasurer - The treasurer is the authorized custodian of the funds of the association. The treasurer receives and disburses all monies indicated in the budget or as authorized by action of the association. All persons authorized to handle funds of the association should be covered by a fidelity bond in an amount based on the organization s annual income and determined by the executive board. The major duties include, but are not limited to, the following: Serve as chairperson of the Budget and Finance Committee if prescribed. Issue a receipt of monies received and deposit said amounts on a weekly basis (daily if receipts on hand exceed $250.00). Present a current financial report including bank statements, bank reconciliations, and financial statements to the Director of Business Services within thirty (30) days of the previous month end. Copies should be available for review by the general membership as requested. File current financial reports at the end of each semester (December and June) with the executive committee. Maintain accurate and detailed account of all monies received and disbursed. Reconcile all bank statements as received and resolve any discrepancies with the bank immediately. File sales tax reports as required by the State Comptroller s office (monthly, quarterly, or annually). File annual IRS form 990 in a timely manner. Submit records to the audit committee appointed by the organization upon request or at the end of the year. Note: Due to the increasing requirements placed on charitable organizations by the Internal Revenue Service, it is strongly recommended the Treasurer have an accounting background. Executive Board - The Executive Board for Booster Club purposes within Danbury Independent School District will consist of the club s director, Director of Business Services and District Superintendent. Special Committees - Special committees are created for a specific purpose and voted upon by the membership. The committee is automatically dissolved as soon as that purpose is accomplished and the committee report is made. Special committees should complete their assignments within the current school year. If the objectives are not met at the end of the school year, officers will be required to reappoint members of the committee for the following year until the purpose of the committee has been achieved. Individuals who have a conflict of interest shall not be allowed to serve as members of the committee. For example, senior parents would not be included on a scholarship committee since their child is a potential recipient of the monies. Nominating Committee - The nominating committee is formed from the organization s membership in the spring of each year. The purpose of the committee is the recommend various members of the organization for office in the coming school year. The nominating committee should be charged with soliciting recommendations for officer positions within the organization. The committee should then contact the potential candidate directly to ascertain their willingness

9 9 and desire to serve. The nominating committee should report back to the membership on their results in the spring so the election may be held. Once officers are elected for the coming year, the newly appointed secretary must submit names, addresses and phone numbers of the new officers to the campus principal. The secretary and treasurer of the organization shall turn records over to the incoming officers within thirty (30) days of the election. Records should be kept for a period of ten (10) years for audit purposes. Audit Committee - At the end of the fiscal year, an audit of the Booster Club s financial records should be conducted. The audit should be performed by individuals who are independent from day- to-day financial activities. Ideally, this audit should be performed by a group of three individuals; however, if the membership size does not allow, the audit may be performed by two individuals. The audit committee shall make a report to the general membership upon completion of the audit. Any discrepancies noted shall be brought to the attention of the president of the organization and a resolution reached prior to presentation. All officers of the organization shall make records available as requested by the committee. Standards for Meetings Notice of all meetings should be published at the campus seventy-two hours prior to the meeting date. The notice should clearly indicate the date and time of the meeting and the items to be discussed. In order to provide an optimum level of communication and teamwork, Booster Club meetings should be held in the presence of the campus principal or other school sponsor. Business determined at meetings without adequate campus representation shall be considered null and void. The Booster Club may use school facilities only with prior approval of the principal or designee.

10 10 Audit Instructions Why is an audit necessary? An audit is an examination of the financial records of the booster club. It assures that all income and expenditures are accounted for and consistent with the budget and goals for the year. It also verifies that the bank balance and ledger balance are reconciled. The audit is to protect the booster club officers and the organization. When is an audit conducted? An audit should be conducted at the end of the fiscal year, when there is a change in treasurer, and when there is a change in any officer who signs booster club checks. Who conducts the audit? An audit may be conducted by an outside party, such as a CPA or an audit committee. The audit committee should be comprised of at least two members of the booster club (not the President or Treasurer). What are the audit procedures? Suggested steps for the audit committee: 1. Review reconciled bank statements and canceled checks to determine that: Disbursements have been properly documented with an invoice or receipt. Disbursements have been properly approved. Checks have been properly signed. Checks have been deposited or cashed by the payee indicated. Checks have been accounted for in the proper sequence (no missing checks). 2. Check addition and subtraction on cash receipts and deposits. 3. Compare cash receipts and deposits to the bank statement. 4. Verify that receipts and disbursements were allocated to the correct account or budget category. 5. Verify that income from sales, dues, or any other sources have appropriate backup. The total amount collected should match the amount deposited into the bank account. 6. Review the treasurer s monthly reports and check them for accuracy. Review the beginning and ending balances on reports to verify that correct ending balances were carried forward as beginning balances on subsequent reports. 7. Determine that only applicable booster club officers are authorized signers on bank account(s). Former officers should not remain on the account(s) as authorized signers. In addition, the faculty sponsor shall not be an authorized signer on the account. 8. Obtain proof that all applicable sales taxes were paid. 9. The audited financial report should be signed by all members of the audit committee and submitted to the Superintendent no later than August 1 st following the end of the fiscal year. 10. Verify that 1099 s were issued if applicable.

11 11 Tax Information The purpose of this section is to provide general tax information to booster clubs. It is each booster club s responsibility to seek competent professional tax advice for its own tax reporting and filing requirements. The information provided in this document is not intended to be specific or allinclusive. How to obtain the tax exempt status 501(c)(3) Formation of a non-profit corporation does not necessarily entitle the organization to exemption from federal taxes. In order to be exempt from federal taxes, the booster club must apply for this status on Form 1023 Application for Recognition of Exemption under Section 501(c) (3). General instructions on the rules and procedures can be found in IRS Publication 557 How to Apply for Recognition of Exemption for an Organization. These documents are available on the Internal Revenue Service website The application must be accompanied by Form 8718, User Fee for Exempt Organization Determination Letter Request, which provides a user fee to be paid to the Internal Revenue Service. Depending on the anticipated annual gross receipts, the fee is either $300 or $750. Upon acceptance of the organization s exempt status by the Internal Revenue Service, a determination letter will be received as evidence of approval. The letter should be kept in a safe, permanent place as it will be used time and again to prove the organization s exempt status. NOTE: Instructions for completing these forms and copies of these forms can be found on the IRS website at under forms and publications. The IRS main number is , and the Tax-Exempt section is How to obtain an Employer Identification Number (EIN) The IRS requires all organizations (entities) that conduct business to have their own Employer Identification Number. The EIN is obtained with the SS-4 Form from the IRS. A member s social security number should not be used as the organization s Employer Identification Number for banking or other business purposes. Booster clubs are not allowed to use the District s EIN. To obtain an Employer Identification Number: Obtain and complete IRS Form SS-4. Make a copy for the club s permanent records. When a number is assigned to the booster club by the IRS, ensure that the paperwork is maintained in a permanent file from year to year. The recommended fiscal year end for the booster club is June 30. There is no application fee required when filing Form SS-4. This EIN will be the number used to establish a bank account for the booster club. NOTE: You can now apply for an EIN number online on the IRS website. Go to then under Forms and Publications insert employer identification number. You will be able to complete the application process online. No fee is required for obtaining an EIN. Booster clubs are not required to file an information return if the annual gross receipts are less than $25,000.

12 12 Sales Tax All booster clubs must apply for their own sales permit number. They may not use the number of another booster club or the District sales permit number. Sales by a booster club are generally taxable. Booster clubs are not tax-exempt unless they have filled out the proper application forms from the Texas Comptroller of Public Accounts and have been given tax-exempt status. Each booster club that has been granted tax-exempt status can have two tax free sale days per calendar year according to Texas State Sales Tax Law. House Bill 697, which became effective 9/1/2013, provides an exemption from the collection of sales tax on food products, meals, soft drinks and candy sold by booster clubs and other school support organizations, if one of the following criteria is met: The food is served by the group during a regular school day pursuant to an agreement with the proper school authorities. The food is sold during a school-sponsored or sanctioned event at a concession stand operated by the group, if the proceeds benefit the school or school district. Organizations that have applied for and received a letter of exemption from sales tax do not have to pay sales and use tax when they buy, lease or rent taxable items that are necessary to the organization s exempt function. No item purchased tax-free by an exempt organization can be used for the personal benefit of a private party or other individual. The Texas Comptroller s Office requires that booster clubs file at least one sales tax report per calendar year. Reports may be due monthly, quarterly, or annually. For any questions regarding sales tax, you can call the Texas Comptroller of Pubic Accounts at or refer to the website Taxable Status of Purchases A booster organization must provide the vendor with a valid signed exemption certificate when claiming state sales tax exempt status. Exemption certificates do not require tax identification numbers to be valid nor is the vendor required by law to honor the exemption. The District s exemption status may not be utilized by parent, booster, patron, or alumni organizations to secure exemption from sales and excise taxes. Parent/teacher organizations and Booster Clubs must apply for their own exemption. Items which become the personal property of the student (cheerleader uniforms, band t-shirts, etc), even though connected with a school or organization, are not exempt from tax. Items which are purchased by the organization through budgeted funds as an award to a student are not taxable. Meals purchased by the organization for teams, groups, bands, etc. on authorized school trips are exempt from sales tax if the organization contracts for the meals. The booster organization must pay for the meals with a Booster Club check and provide an exempt certificate. Individual members of the team, group, band, etc. may not claim exemption from sales tax on the meals they purchase while on a school authorized trip.

13 13 Collection and Remittance of Sales Taxes The Booster Club shall collect sales tax on all taxable sales. When imposing sales tax, the organization has the option of: Adding the tax to the item s selling price thus, if the selling price of an item were $2.00, the tax rate was 8.25%, the school would collection $2.17 ($2.00 x ) from the buyer for each item sold. Absorbing the tax in the item s selling price thus, if the item sold for $2.00 including the tax, the school would retain $1.83 and remit $0.17 for sales tax. If this method is used, divide the total sales by (assuming the tax rate is 8.25%) to find the taxable sales. To determine the sales tax amount, subtract the taxable sales from the gross sales. Taxable Status of Sales School and school related organizations need not collect sales tax on the following: Admission tickets Club memberships Food and drinks sold at school functions Therefore, state and local sales tax shall be imposed and collected on all sales for: Any type of Booster Club materials Any other item sold as personal property (i.e., school pictures, uniforms, sweaters, etc) All sales of items such as handicrafts, T-shirts, candles, cups, books, and school supplies sold by a school associated organization during a fundraising drive All other personal property except for those items specificall excluded above Sales tax should be filed in accordance with the State Comptroller s guidelines. Further information can be found on the Comptroller s website: Concession Stand Operation (Athletic/Band/FFA Booster Clubs) Concession stand assignments are made at the beginning of each school year by the Administration. All profits made on any concession stand are to be kept by the organization that operates it each week. Each booster club or organization is responsible for purchasing concession stand items to be sold. Each booster club or organization is responsible for supplying workers to set up, operate and cleanup the concession stand after each use. Each booster club will be responsible for collecting, counting and depositing all concession stand monies, and preparing a weekly financial report to be submitted to the Danbury ISD Business Office.

14 14 Banking Information To open a bank account, the booster club must first obtain an Employer Identification Number (EIN) from the IRS. (See Tax information section) The booster club shall not use just the school s name on its checks or on its literature. The use of the school name might imply that the school or the District is responsible for any obligations entered into by the club. It must include the booster club s name on the bank account. At least two officers should sign each disbursement. Both signers should be elected or appointed officers that are active members and have a child who is actively participating in the program during the current school year. Active members include parents, guardians, step-parents, or grandparents of a student active in the sponsored program. School district employees should not be an authorized signer on the bank account. All funds received should be receipted and deposited within 24 hours of receipt. Commingling of booster club funds and school activity funds is prohibited. School employees may not accept loans of funds from parents and student organizations. The treasurer should reconcile the bank statement monthly and submit a monthly financial report to the booster club officers. All bank statements and correspondence should go to the booster club address, not the school address. Financial Reporting At a minimum, the organization s membership should be provided with a financial statement and bank reconciliation at each meeting. The financial statement should provide a comparison of budgeted versus actual expenditures and receipts. Cash receipts and disbursement reports should be available for review when needed and at the annual audit. Financial Reporting to the District GASB Statement No. 39 of the Governmental Accounting Standards Board requires the District to obtain and review financial performance information of supporting organizations to determine whether these organizations should be considered a component unit. To this end, Booster Clubs are required to submit to the Executive Board mid-year and end-of-year financial statements. End-of-year financial statements should be submitted to the Superintendent. Cash Receipt Procedures All cash collections received by the Booster Club for fees, dues, fund raising, etc. must be deposited upon receipt. All funds must be supported by some type of record documenting the source and amount of funds. Such documentation should be readily available for audit purposes.

15 15 It is recommended that deposits be made daily if the total receipts on hand exceed $ If daily receipts are less than $250.00, deposits shall be made within one week even if the receipts for all days combined are less than $ All money must be deposited prior to holidays and weekends. Bank deposits should be prepared as follows to ensure the integrity of the financial reporting: Separate all currency and coins by denomination and carefully count and record it in the appropriate section of the bank deposit form. A tape may be run of any checks included in the deposit rather than indicating the checks individually on the deposit slip. A copy of the tape should be retained with your copy of the deposit records. Total the deposit slip. Tally the pre-numbered cash receipts and make certain this total matches the deposit total. Attach the cash receipt verification with a copy of the deposit clip and file in date order. For large deposits, have another individual independently count the currency only (not the coins or checks) and verify the currency has been correctly recorded on the deposit slip. Both individuals should initial the deposit slip next to the currency amount on the deposit slip. Seal the deposit in a deposit bag in the presence of the second individual. This is called dual control and places the organization in a better position to challenge any claim that the bank may make that the currency received was not correct. Petty Cash Each booster organization may maintain a small petty cash account. Strict controls must be maintained by keeping petty cash in a locked box accessible by only the treasurer and one other officer. Control of the petty cash account by a district employee is not allowed. The petty cash funds should be used for emergency purchases only. All other purchases should be made with a Booster Club check. Upon disbursement through the petty cash account, a receipt for the purchase should be retained. At any given time, the amount of petty cash remaining and the aggregate total or receipts on hand should equal the amount of the established petty cash account.

16 16 Bank Reconciliation Upon receipt of the monthly bank statement, the balance indicated on the statement shall be reconciled to the bank account balance in the general ledger as of the last day of the month. The reconciliation should be completed within thirty (30) days of the date of the bank statement. Items needed for reconciliation: Bank reconciliation form Prior month s bank reconciliation Bank statement Check Register and/or Cash Disbursement journal Cash Receipts journal General Ledger Disbursement of Funds At the outset of the school year, a budget of anticipated expenditures should be developed. Prior to a disbursement, the request to expend funds should be compared with the budgeted expenditures. Disbursements outside the scope of the budget or line items that exceed the approved budget should require a vote by the general membership. Direct payments to District employees are not permitted uses of Booster funds, nor are the purchase of alcoholic beverages or tobacco products. Booster organizations may not contribute funds in an effort to increase the personal allocations and/or stipends of a particular program or campus without the express written approval of the Executive Board. A disbursement voucher should be completed for all expenditures regardless of the amount. The appropriate supporting documentation (invoices, receipts) should then be attached to the disbursement form and filed in check number order. At no time should a check be issued without the appropriate supporting documentation. To ensure compliance with UIL guidelines governing activities, all disbursements relating to Booster Club activity shall require the approval of the campus principal or designee Requirements Internal Revenue Service guidelines require that all payments for services in excess of $ made to an individual by a booster organization be reported on a form 1099 on an annual basis. The Booster Club should secure an IRS form W-9 from the provider at the time of service to ensure the organization has an accurate record of the tax payer identification number. The organization must then issue a form 1099 to all qualifying vendors performed in a calendar year by January 31 st. The following guidelines can be used to determine if reporting is required: Risk of profit or loss Independent contractors realize a profit or sustain a loss based on their success in performing the work or service. Continuing relationship The relationship between an independent contractor and employer ends when the job is complete.

17 17 Compliance with instructions Independent contractors cannot be told when, where or how to do the job. Training Independent contractors do not go through any type of instructional training period with a more experience employee to learn how to do the job. Independent contractors specialize in the field in which they have been employed and do not require training. Personal Service required The right of an independent contractor to substitute another s services without the employer s knowledge shows that one particular individual s personal services are not being required by the employer. Integration into the business The success or continuation of the business is not dependent on the independent contractor s performance of the service. Control over hiring, supervising, and paying of assistants Independent contractors maintains control of their assistants. The employer contacts the independent contractor if there is a problem, and the employer pays the independent contractor for the work done. The independent contractor then pays the assistance directly. Set hours of work An independent contractor sets working hours. A full-time work requirement An independent contractor has the availability to work for more than one client. Working for more than one firm An independent contractor has an established business in which they work for more than one firm. Worker s availability to the general public An independent contractor makes services available to the public on a regular and consistent basis. Working on the employer s premises An independent contractor works offpremises unless the nature of the service to be performed requires attendance at the employer s work site. Required work order or sequence An independent contractor does not need to be told in what order or how to do a job as he/she is considered an expert in the field. Required reports An independent contractor is not required to submit oral or written reports. Payment by the hour, week, or month An independent contractor is paid in a lump sum fee basis when the job is complete. An invoice must be generated to substantiate payment. Payment of business or travel expense An independent contractor is responsible for his/her business or travel expense. If paid by an employer, the employer must include the expense amount in the independent contractor s Investment in facilities If the independent contractor maintains an office on the employer s premises, he/she must pay a rent or lease payment for the office space as well as the overhead. Employer s discharge rights An independent contractor cannot be terminated as long as he/she is fulfilling the contract. Worker s termination rights An independent contractor may be held financially responsible for any loss the employer may suffer due to an incomplete, inaccurate or unsatisfactorily completed contract. The Internal Revenue Service website should be accessed for appropriate 1099 reporting requirements and forms.

18 18 Fund Raising Activities It is the policy of the District that funds received from Booster Club fundraising activities is used to benefit the student and school in an appropriate way. Fundraising projects for parental groups shall be: For the educational benefit of the student, coordinated through the principal. For a specific project as identified in the current approved budget and not for the sake of raising money. In connection with the established goals and philosophies of the Booster Club as well as UIL guidelines. The use of individual accounts for members of District groups or clubs is not allowed. No fundraising activities can begin until the booster club obtains approval from the Superintendent. (See form - Fundraiser Request for Booster Clubs)

19 Scholarships The District requires Booster Clubs to implement scholarship programs that are consistent with all other scholarship programs. Requirements include: All qualifying seniors must have the opportunity to apply for the scholarship(s). The application process should be reviewed and approved by the campus principal or designee to ensure that implemented processes are consistent with other scholarship programs on the campus. The application process must be clearly communicated, and the application forms must be readily available to all potential applicants and their parents and/or guardians before the end of the first grading period of the academic year. The Scholarship Review Committee must be appointed by the President of the Booster Club before the first day of the academic year. The Scholarship Review Committee must be made up of an off number (5-7) of members (parents of the Booster Club who do not have children eligible for consideration for the scholarship, interested teachers, campus administrators, and/or the sponsor). Many times the sponsor is an exofficio member of the Scholarship Review Committee and not an actual voting member so the sponsor is a source for additional information/input to the Scholarship Review Committee and a final review resource for the Scholarship Review Committee decisions. The Scholarship Review Committee must consider all qualifying applicants. The qualification criteria for selection for scholarship winners (if any) must be communicated in writing to all potential applicants before the end of the first grading period of the academic year and may not be changed during the scholarship award period. Any changes to the scholarship qualification criteria must be recommended by the sponsor and voted on by the Booster Club membership no later than the May Booster Club meeting for changes effective in the upcoming academic year. The application, scoring, decision materials, tabulation, notes, certified recordings, and/or any other documentation used by the Scholarship Review Committee in connection with a given applicant shall be made available upon written request to that applicant. An open records request fee may be charged for this service. Scholarship Review Committee must retain the original materials for a minimum of seven years. Scholarship applicants shall be full-time DISD senior students for a minimum of one full semester prior to the application deadline. All completed applications must be turned in to the DISD Senior Counselor no later than the deadline set for local scholarship applications. All scholarship applications which do not have the required information will be considered incomplete and returned to the applicant. Scholarship awards may not be need based. Applicants who have received full scholarships from other sources may not be eligible for local scholarships. The applicant s intended major may or may not be made a factor in scholarship consideration. The applicant s enrollment in an accredited institution (college, university, trade school, military academy, etc) is a requirement for receiving scholarship funds. The Booster Club may or may not require interviews with applicants in the decision process. If an interview is part of the process, it must be communicated no later than the end of the first grading period of the academic year. The applicant s parent or guardian must be permitted to be present at any interview. Interview topics must be communicated to the applicant not less than seventy-two hours prior to the interview. The scholarship committee may require an essay for judging purposes. Essay topics may be selected each year and given to all applicants, or the Scholarship Review Committee may allow each applicant to select their own topic upon the sponsor s approval.

20 Danbury ISD Leadership Information School Year Booster Club Name President Phone # Address Vice-President Phone # Address Treasurer Phone # Address Secretary Phone # Address Financial Institution Information: Name of Bank Acct # Names of Check Signers: This information must be completed by the newly appointed secretary for the upcoming year and submitted to the Superintendent.

21 Danbury ISD Fundraiser Request for Booster Clubs Fundraiser for Booster Club Product to be sold: Vendor Name and Address: Proceeds to be used for: Date fundraiser begins: *End date: Booster club agrees to be responsible for student activity fundraiser by selling and distributing all products received from vendor. Students will not be selling any products, only members of the booster club. School employees may not sell/work during school hours for booster club events/fundraisers. Booster Club: Date: Principal: Date: Superintendent: Date: Comments: This information is needed to determine that booster clubs are not selling items which our student fundraisers have been approved for selling at the same time.

22 Danbury Independent School District 5611 Panther Drive Danbury, TX To: Booster Club Organization The Texas Education Agency now requires that all affiliated organizations of Danbury Independent School District comply with the Governmental Accounting Standards Board reporting requirements. Attached is a financial report form and information from GASB Statement No. 39. Please have your club treasurer or a designated knowledgeable member of your booster club complete this financial report form. Prior to 2004, the booster clubs were considered a totally separate unit from the Districts. However, because of the tremendous amount of funds now flowing through from booster clubs to school funds, it has become necessary for Districts to prove that the booster clubs are indeed a separate component. Please return the attached form by August 1 st each year. This information will be forwarded to our auditors for inclusion in our annual audit. Thank you for your cooperation in completing this form. Sincerely, Glenda K. Moore Director of Business Services

23 Financial Report for Danbury Independent School District For the School Year This form should be completed by the treasurer for your Danbury ISD affiliated organization. If your treasurer is unable to do so, the president should complete it or designate a knowledgeable member of your group. PLEASE PRINT Name of Organization: Student group you support: School Year: Officers: President Vice-President Secretary Treasurer Phone Phone Phone Phone An address for your designated officer: Financial Information necessary to comply with Governmental Accounting Standards Board reporting requirements: Have you been recognized as a tax-exempt entity by the Internal Revenue Service? Yes No If yes, attach a copy of the tax-exempt paperwork 1. What was the total revenue for this school year? $ 2. What is the current balance of assets including cash, investments, etc., of your organization? Cash and Investments $ All other Assets $ 3. What were the total expenses for this school year? $ 4. What were the total amounts contributed to student/campus organizations this school year? $ This form was completed by: Signature Date Additional information may be required if the organization is determined to be a component unit as defined in Governmental Accounting Standards Board Statement No. 39. Please return (by mail or fax) to: Danbury Independent School District ATTN: Greg Anderson, Superintendent 5611 Panther Drive Danbury, TX Fax If you have any questions concerning this form, call Glenda Moore at glenda.moore@danburyisd.org PLEASE RETURN As Soon As Your Transactions Are Complete Or NO LATER THAN August 1, Thank You for Your Participation.

24 Links to IRS forms Application for Recognition of Exemption under Section 501 (c) (3) of the Internal Revenue Code Return of Organization Exempt from Income Tax under Section 501 (c), 527, or 4947 (a) (1) of the Internal Revenue Code (except black lung Benefit trust or private foundation) Short Form Return of Organization Exempt from Income Tax Under section 501(c), 527, or 4947 (a) (1) of the Internal Revenue Code (except black lung Benefit trust or private foundation)

25 GENERAL GUIDELINES University Interscholastic League Booster club Guidelines The role of competition Participation teaches that it is a privilege and an honor to represent one s school. Students learn to win without boasting and to lose without bitterness. Self-motivation and intellectual curiosity are essential to the best academic participants. Artistic commitment and a desire to excel are traits found in music participants. Physical training and good health habits are essential to the best athletes. Interscholastic competition is a fine way to encourage youngsters to enrich their education and expand their horizons. Leadership and citizenship experiences through school activities help prepare students for a useful and wholesome life. Plus, competition is fun! Role of the Superintendent Member schools make UIL rules and determine policies regarding penalties to schools, school district personnel and student participants. The Superintendent is solely responsible for the entire UIL program. All school activities, organizations (including the booster club), events and personnel are under the jurisdiction of the Superintendent. Booster clubs must recognize this authority and work within a framework prescribed by the school administration. Role of Booster clubs Neighborhood patrons form booster clubs to help enrich the school s participation in extracurricular activities. The fundraising role of booster clubs is particularly crucial in today s economic climate. Be they music, fine arts, academic or athletic, booster clubs should exist to enrich students involvement in extracurricular activities without endangering their eligibility. Written Policies Booster clubs should develop and annually review policies to cover: *how to obtain administrative approval before beginning projects; *how to plan and publicize meetings; *bookkeeping and fund administration including process to obtain Superintendent s approval prior to raising or spending funds; *election of officers (suggestion: one president; one secretary; one treasurer; and three vice - presidents: one vice Updated August 2011

26 president to oversee fall, winter and spring sports); *taking, distributing and filing minutes; *public communication; *proper interaction with fine arts directors and academic and athletic coaches through the lines of authority as established by the school board; *a sportsmanship code governing behavior of booster club members and fans at contests, treatment of officials, guests, judges, etc.; and *plans to support the school regardless of success in competition, keeping the educational goals of competition at the forefront of all policies. Relationship with the school The superintendent or a designee who does not coach or direct a UIL contest has approval authority over booster clubs and should be invited to all meetings. All meetings should be open to the public. *Booster clubs do not have authority to direct the duties of a school district employee. The scheduling of contests, rules for participation, methods of earning letters and all other criteria dealing with inter-school programs are under the jurisdiction of the local school administration. *Minutes should be taken at each meeting and kept on file at the school. *School administration should apprise booster clubs of all school activities. *Booster clubs should apprise school administrators of all club activities. *Periodic financial statements itemizing all receipts and expenditures should be made to the general club membership and kept on file at the school. CLUB $ FINANCES Fundraising Spending Stipends Gifts to Coaches Money given to a school cannot be earmarked for any particular expense. Booster clubs may make recommendations, but cash or other valuable consideration must be given to the school to use at its discretion. *Fund-raising projects are subject to state law. Nonprofit or tax-exempt status may be obtained from the Internal Revenue Service. *Community-wide sales campaigns should be coordinated through the school administration to minimize simultaneous sales campaigns. *Sales campaigns should be planned carefully to insure that the projects provide dollar value for items sold, and that most of the money raised stays at home. Otherwise donations are often more rewarding than letting the major part of the Updated August 2011 money go to outside promoters. *Fund-raising activities should support the educational goals of the school and should not exploit students. Activities and projects should be investigated carefully before committing the school s support. *Individuals who actively coach or direct a UIL activity should serve in an advisory capacity to the booster club and should not have control or signature authority over booster club funds, including petty cash or miscellaneous discretionary funds. Coaches wish-lists should have received prior approval from school administration before submission to boosters. *Coaches and directors of UIL academics, athletics and fine arts may not accept more than $500 in money, product or service from any source in recognition of or appreciation for coaching, directing or sponsoring UIL activities. The $500 limit is cumulative for a calendar year and is not specific to any one particular gift. *The district may pay a stipend, fixed at the beginning of the year, as part of the annual employment contract. The amount of the stipend can t depend on the success of a team or individual. In other words, a coach can t receive more money if a team or individual qualifies to region or state. *Funds are to be used to support school activities. To provide such funding for non-school activities would violate UIL rules and the public trust through which funds are earned. ATHLETIC BOOSTERS Club restrictions Booster clubs cannot give anything to students, including awards. Check with school administrators before giving anything to a student, school sponsor or coach. Schools must give prior approval for any banquet or get-together given for students. All fans, not just members of the booster club, should be aware of this rule. It affects the entire community. *Unlike music and academic booster clubs, athletic booster club funds shall not be used to support athletic camps, clinics, private instruction or any activity outside of the school. *Booster groups or individuals may donate money or merchandise to the school with prior approval of the administration. These kinds of donations are often made to cover the cost of commercial transportation and to cover costs for out-of-town meals. It would be a violation for booster groups or individuals to pay for such costs directly. *Individuals should be informed of the seriousness of violating the athletic amateur rule. The penalty to a student-athlete is forfeiture of varsity

27 athletic eligibility in the sport for which the violation occurred for one calendar year from the date of the violation. Student athletes are prohibited from accepting valuable consideration for participation in school athletics - anything that is not given or offered to the entire student body on the same basis that it is given or offered to an athlete. Valuable consideration is defined as tangible or intangible property or service including anything that is usable, wearable, salable or consumable. Local school districts superintendents have the discretion to allow student athletes to accept, from their fellow students, small goodie bags that contain candy, cookies or other items that have no intrinsic value and are not considered valuable consideration. *Homemade spirit signs made from paper and normal supplies a student purchases for school use may be placed on the students lockers or in their yards. Trinkets and food items cannot be attached. Yard signs made of commercial quality wood, plastic, etc. if not purchased or made by the individual player s parent, must be returned after the season. *The school may provide meals for contests held away from the home school. If the school does not pay for meals, the individual parents need to purchase their own child s food. Parents may purchase anything they wish for their own child but may not provide food for their child s teammates unless approved by the school. The school may also provide supplies for games and practices and transportation for school field trips. Students should pay admission fees during school field trips. *Parties for athletes are governed by the following State Executive Committee interpretation of Section 441 of the UIL Constitution & Contest Rules. Official Interpretation of the UIL Athletic Amateur Rule, section 441 of the UIL Constitution and Contest Rules: (a) VALUABLE CONSIDERATION SCHOOL TEAMS AND ATHLETES MAY ACCEPT: 1. Pre-Season. School athletic teams may be given preseason meals, if approved by the school. 2. Post-Season. School athletic teams may be given postseason meals if approved by the school. Banquet favors or gifts are considered valuable consideration and are subject to the Awards and Amateur Rules if they are given to a student athlete at any time. 3. Other. If approved by the school, school athletic teams and athletes may be invited to and may attend functions where free admission is offered, or where refreshments and/or meals are served. Athletes or athletic teams may be recognized at these functions, but may not accept anything, other than food items, that is not given to all other students. (b) ADDITIONAL VALUABLE CONSIDERATION THAT SCHOOL TEAMS AND ATHLETES MAY ACCEPT Examples of additional items deemed allowable under this interpretation if approved by the school, include but are not limited to: 1. meals, snacks or snack foods during or after practices; 2. parties provided by parents or other students strictly for an athletic team Local school district superintendents continue to have the discretion to allow student athletes to accept small goodie bags that contain candy, cookies or other items that have no intrinsic value and are not considered valuable consideration. ACADEMIC BOOSTERS The rules for athletics are different than the rules for academics and music. Athletes are restricted by the Athletic Amateur Rule, which states that athletes cannot accept money or valuable consideration for participating in a UIL sport or for allowing their names to be used in promoting a product, plan or service related to a UIL contest. Academics has no amateur rule. Journalism participants may work for a newspaper and be paid. Actors may work summer stock and be paid. Students may win calculators and software for participating in invitational math contests. UIL academic students are restricted by the Awards Rule. So, as a general practice, booster clubs should not give gifts or awards to students for their participation in UIL contests that count toward district, region or state standing. School booster clubs may raise money to purchase letter jackets, provided the funds are given to the school without designation to buy jackets for particular students and the school determines criteria for awarding the jackets. Parents may purchase jackets for their own children provided the school designates the student as being qualified to receive the jacket. Booster clubs may raise money to provide an annual banquet for academic participants and coaches. With prior administrative approval, you may also: *Purchase equipment for programs such as computers or software for yearbook or computer science; *Organize and chaperone trips and assist with expenses for travel to academic competitions or educational trips such as journalism conventions or speech tournaments. Booster club funds may be used to provide food and refreshments for students on these trips. A purely recreational trip to Six Flags Updated August 2011

28 Over Texas would not meet the definition of an educational field trip and could be considered a violation of the Awards Rule; *Run tournaments, organize fund-raising efforts, recruit corporate donors, raise money for scholarships and arrange for tutors and professional trainers to work with students; *Fund academic workshop scholarships provided selection of the recipients is not based solely on their success in interscholastic competition. Selection could be based on grade point average or the student s selection of high school courses. All students meeting the conditions for scholarship assistance should be notified and eligible for financial assistance. Funds should be monitored to ensure that they are expended for camp or workshop purposes. We wish we had more academic booster clubs, whether they cover UIL academic competition in general or specific programs such as theatre, speech/debate, journalism or math/ science. A great need exists for parental involvement and support. MUSIC BOOSTERS In addition to the general procedures outlined, the following guidelines apply to Music Booster club activities. *Some music booster clubs assist with expenses for travel to various music-related activities such as UIL contests and performances at away athletic events. Such financial support violates no UIL rules provided that it is approved and coordinated by the local school district. *Many music groups schedule educational field trips with the approval of the local school administration and under local school district policies. For such trips, specific educational components must be included such as performing for a music festival, an adjudicated contest or a concert tour. Marching performances such as the Macy s Thanksgiving Day Parade, the Rose Bowl Parade or other similar ceremonial appearances also qualify. However, educational components need not be limited to performances. Concert attendance, visiting university/conservatory music facilities and other music related, non-performing opportunities would also be appropriate if approved by the local school district. *A recreational trip, on the other hand, would not meet the definition of an educational field trip as provided in Section 480 of the UIL Constitution and Contest Rules. Students receiving the benefits of a purely recreational trip would likely be in violation of the Awards Rule. *Booster clubs may also fund scholarships for private Updated August 2011 lessons and summer music camps provided the selection of the recipients is not based on success in interscholastic competition. Funds for such activities should be carefully monitored to ensure that they are expended for educational rather than recreational activities. *The awarding of patches, T-shirts or other items for achievement in interscholastic competition would be subject to the UIL Awards Rule. In order to protect all music students eligibility, such awards should be approved and administrated by the local school district in accordance with school district policies. *Be mindful of the fact that there is no Music Amateur Rule. Therefore, limitations established in athletics intended to ensure compliance with the Athletic Amateur Rule do not apply to music programs and related activities. What You Can Do: Parents *Remember: The classroom comes first! *Help conduct fair and equitable competition: adhere to rules, uphold the law and respect authority. *Remember that officials are human. Respect their decisions. *Delegate authority to the school, then support its decisions. *Set standards by which you expect children to conduct themselves, and live by those standards yourself. *Be aware of capabilities and limitations of young people. Don t have unrealistic expectations. *Allow your children to live their own lives. *Be involved in areas in which your own child is not involved, thus contributing to school unity and spirit. *Show respect to the opponents of your children. *Praise. Don t criticize. Urge others to do the same. *Help your children and their friends develop integrity through the intensity of competitive activity. Work with the administration *Positive and direct communication can prevent most problems. Keep the superintendent informed of all activities. *Make sure your local administration has a copy of all club publications. *Invite administrators to all booster club meetings. *Have an officer meet with the school administration regularly. *Have a chain of command for communication with the administration. *Clear all activities through your administration. Coaches and Fine Arts directors *Be sure your booster club wish list has been approved by your supervisor before it goes to the booster club. *Work with your administration to determine what your club can provide. *Make your request to the club benefit as many students as possible. *Attend the booster club meetings and/or know what the club is doing. *Understand that your advisory role to the boosters is without vote. *Support other programs within your district. *Meet with parents regularly and make them aware of relevant rules. *Involve your staff with your booster club. Let the booster club know who your staff is and what duties they perform.