PTO / Booster Club Guidelines

Transcription

1 PTO / Booster Club Guidelines 8/21/2017

2 PTO / Booster Club Guidelines Table of Contents SECTION 1: WELCOME Superintendent s Letter Introduction SECTION 2: OVERVIEW OF PTO / BOOSTER CLUB Contact List Overview of Forming a PTO / Booster Club PTO / Booster Club Registration & Approval Form Forming a PTO / Booster Club Steering Committee Bylaws of Corporation Bylaws of Corporation Example Obtaining an Employee Identification Number Texas Sales Tax Permit Public 501(c)(3) Tax Exempt Status Texas Sales and Franchise Tax Exempt SECTION 3: FINANCIAL GUIDELINES Contact List PTO / Booster Club Checklist Financial Responsibilities Accounting Controls and Procedures Bank Accounts Carry-Over Balances Collections for Specific Individuals and Families Conflict of Interest Contributions / Donations Corporation Reporting Expenses Financial Aid Guidelines Financial and Review Reports IRS IRS Reinstatement of 501 (c)(3) Tax-Exempt Status Mailing Address Members Page 1 8/21/2017

3 Membership Dues Money Handling Procedures Paying and Reporting of Workers Project Prom Incentives Record Retention Safes Sales Tax Student Fines and Fees List Suspending a PTO / Booster Club Treasurer s Report Forms Authorization for Signer Form Financial Reports Example Cash Basis Financial Report Example Balance Sheet Example Income Statement Review Reports Example Review Committee Report, Proper and Correct Example Review Committee Report, Proper and Correct with Exceptions Example Review Committee Report, with Material Exceptions SECTION 4: FUNDRAISING GUIDELINES Fundraiser Steps Fundraiser Guidelines Approved Fundraiser Vendors Approved Fundraiser Programs Carnivals Garage Sales, Car Washes, etc Candy/Food Sales Catered Dinners Craft Shows Non-approved Fundraiser Activities Gambling, Bingo, etc Raffles Food Item Requirements Miscellaneous Issues Facility Use Fees for Fundraisers Forms and Reports Fundraising Activity Report (Permission Request and Operating Report) Fundraising Activity Report-Attachment A (Catalog/Product Sales) Fundraising Activity Report-Attachment B (Ticket Sales) Fundraising Activity Report-Attachment C (Concessions) Cash Receipt Sheet School Fundraiser Log Fundraising Restrictions and Example of the Use of Funds Raised Page 2 8/21/2017

4 SECTION 5: VENDOR CONTRACTS AND INSURANCE REQUIREMENTS Contact List Signing Vendor Contracts for Services or Goods Contract/Lease Attachment Insurance Requirements for Equipment Vendors Texas Department of Insurance SECTION 6: PURCHASING GUIDELINES Contact List Guidelines for Selecting a Vendor Spending Fundraiser Money Outdoor Equipment-Guidelines and Procedures Request for Purchase of Outdoor Equipment Overview of USDA Smart Snacks Rule Adopted Guidelines for Use of Food and Beverages SECTION 7: MISCELLANEOUS Utilization of Vehicles/Trailers for CFISD Events CFISD Notice of Driver Liability Form Donations of Technology Specifications for Computer Donations Reasons for Documenting Volunteer Hours and Donations Robert s Rules

5 SECTION 1 WELCOME

6 Mark Henry, Ed.D. Superintendent Dear Parents: On behalf of Cypress-Fairbanks Independent School District, I want to express my appreciation for your many hours of dedicated service in support of our students and schools. Our partnership with PTOs and booster clubs is an important part of our efforts for the students to achieve excellence in curriculum, extra-curricular and co-curricular activities. The following guidelines will assist you in complying with district policies and guidelines, University Interscholastic League (UIL) guidelines and state and federal requirements governing PTOs and booster clubs. Through parent support, our students are afforded many opportunities to develop and showcase their talents in the context of quality programs. The Board of Trustees and I thank you for your ongoing support of students and schools in Cypress-Fairbanks Independent School District. Sincerely, Mark Henry, Ed.D. Superintendent 1.1 8/21/2017

7 Introduction The primary objective of a Parent Teacher Organization (PTO) / booster club is to enrich the education and activities of students through cooperation of parents and staff in providing support to promote school programs or complement student groups or activities that enrich their education and expand their horizons. The PTOs / booster clubs work very closely with the district; however, the organizations are each considered separate entities from the district. Since the activities of the PTOs / booster clubs impact the district and the public perception of the district, the district and the Principals have authority to regulate these organizations. The main responsibilities of a PTO / booster club, a sponsor, and a principal are discussed below: PTO / booster club - A PTO is responsible for supporting students and staff at an elementary school. A booster club is responsible for supporting a student group, activity, or program at a high school. Support may be as simple as providing refreshments for a particular event or support may be as complex as raising money for an out-of-state competition. The PTO / booster club works with the principal / sponsor to provide assistance for the planned activities; however, the PTO / booster club does not have the authority to decide the activities or trips in which the students will participate. The parents and the PTO / booster club may provide suggestions about particular activities; however, the Principal / Sponsor is responsible for the final decision. Sponsor / Liaison - A designated sponsor of a student group serves as the liaison between the booster club and the school / district, under the supervision of the principal. The sponsor is responsible for determining the various activities and trips in which the student group will participate with the approval of the principal. In addition, the sponsor should work very closely with the booster club and provide guidance to the organization. The sponsor should not be considered an officer or member of the booster club. However, the sponsor shall approve all student / school-related activities of the booster club. Principal - The principal is responsible for approving the formation of a PTO / booster club as well as the activities of the students / student group and some activities of the PTO / booster club. Each PTO / booster club should strive to remain in good standing with all state and federal agencies. Therefore, each PTO / booster club is responsible for obtaining its own competent independent counsel on accounting and tax matters related to its specific circumstances, if needed. This counsel may include a Certified Public Accountant (CPA) or an attorney. The cost of these services would be the PTO's / booster club s responsibility. PTO / booster club officers are solely responsible for ensuring that their organization is in compliance with all state and federal regulations. Therefore, the district, including any district employee, is not responsible for a PTO / booster club not being in good standing with all state and federal agencies. These guidelines will assist PTOs / booster clubs in being in compliance with district, University Interscholastic League (UIL), state, and federal requirements. The district greatly appreciates the time, effort, and financial support that the PTOs / booster clubs provide to our students, staff, and schools /21/2017

8 SECTION 2 OVERVIEW OF PTO/BOOSTER CLUB

9 Contact List Booster Clubs Kristi Giron Director of General Administration PTOs Leslie Francis Director of Marketing and Business Relations /21/2017

10 Overview of Forming a PTO/Booster Club To assist our schools and students in the district, parents will form organizations that help raise money to enhance a school or student group. At the elementary schools, parents may form a PTO to support the school overall. At the high schools, parents may form a booster club for certain types of student activities. The middle schools do not have any parent organizations. PTOs/booster clubs provide an important support function to schools and student groups; however, they also require a strong commitment from members to work properly. Therefore, deciding whether or not to form a PTO / booster club is a difficult decision that requires careful consideration of the pros and cons of formation. Parents interested in forming a PTO / booster club should discuss the pros, the cons, and the responsibilities of having a PTO /booster club with each other as well as the principal / sponsor of the student group. The principal must approve, in writing, the formation of a PTO / booster club before the organization takes any further action to create a unique identity. Parents do not have to form a PTO / booster club to support a school / student group. Parents may still support a school / student group as parents through fundraisers and other activities. Money raised at the elementary level are used to benefit the school as a whole. The money raised at the high school level is for a particular student activity. The money raised for these groups is accounted for in a Student (Agency) Activity Fund set up through the district. This money would be considered the student group s money and would benefit only that group of students. For money raised through the elementary schools or the student groups, the district is responsible for all of the accounting and legal responsibilities of these funds. The following are some questions to consider when deciding whether or not to form a PTO / booster club: What can a PTO / booster club accomplish that cannot be achieved through the school / student group? Do I have time to commit to a PTO / booster club? Are there enough parents with time to commit to a PTO / booster club? Am I willing to perform the necessary research, training, and paperwork to be in compliance with all district, UIL, State, and Federal regulations? (This includes submitting required information to the Texas Comptroller s Office and the IRS.) Have I read or will I read the rest of the PTO / Booster Club Guidelines and this handbook to discover my responsibilities once a PTO / booster club is formed? Have I spoken with other PTOs / booster clubs to determine what benefits / problems they have experienced? Have I spoken with the principal / sponsor to obtain support for the formation of a PTO / booster club? Once you have decided to form a PTO / booster club, obtain the written approval of the principal before proceeding with any other steps to form a PTO / booster club. (See PTO / Booster Club Registration & Approval Form.) 2.2 8/21/2017

11 Overview of Forming a PTO / Booster Club For booster clubs, the formation of the following types of booster clubs only need the written approval of the Principal: Athletics Band Cheerleader Choir Drama Drill Team FFA Future Farmers of America NFL National Forensics League (Debate) Orchestra Project Prom ROTC or JROTC (Junior ROTC) The formation of any other booster clubs must be approved by the Associate Superintendent for Governmental Relations, Communications, and Chief of Staff and the Associate Superintendent for Curriculum and Instruction. After receiving approval of the PTO / booster club, send a copy of the PTO / Booster Club Registration & Approval form to: PTOs Director of Marketing & Business Relations Booster clubs Director of General Administration 2.3 8/21/2017

12 Cypress-Fairbanks Independent School District PTO / Booster Club Registration & Approval Form To: (Principal s Name) Location: (School s or Department s Name) Name of Organization: Purpose of Organization: School / Student Group to be Supported: Faculty Sponsor for Booster Club: Current Number of Parent Supporters: I agree with the following statements: I have read the PTO / Booster Club Guidelines and agree to abide by the information included in the guidelines as well as information referenced in the guidelines. I understand that noncompliance with any district policy or criteria may result in the suspending or disbanding of the PTO / booster club by the principal. I have included a current list of officers or representatives with names, titles, mailing addresses, phone numbers, and addresses with this registration form. Submitted by: / / / / (President/Representative #1) Date (Vice-President/Representative #2) Date / / / / (Treasurer/Representative #3) Date (Faculty Sponsor) Date Approved / Denied by: PTO / Booster Club Approved PTO / Booster Club Denied / / (Principal s Name) (Principal s Signature) Date The original form should be sent to a representative of the PTO / booster club. The principal should keep a copy and provide copies to the sponsor (booster clubs), the Director of Marketing & Business Relations (PTOs), and the Director of General Administration (booster clubs) /21/2017

13 Forming a PTO/Booster Club After receiving written approval to form a PTO / booster club, complete the following necessary steps to establish the organization. 1. Establish a PTO / Booster Club Steering Committee to setup the organization. (Members of the steering committee cannot be considered as PTO / booster club officers until they are elected at a general membership meeting.) 2. Determine official mailing address of the PTO / booster club. By maintaining a consistent mailing address, you will not have to update your address each year to the district, the Texas Secretary of State, the Texas Comptroller s Office, the IRS, and your bank. We recommend that a post office box (PO Box) or private mailing box (PMB) be used as the official mailing address. The address and box keys can be given easily to the new officers at the beginning of each school year. The school s address may be used as the PTO s / booster club s official address; however, the PTO / booster club may not receive mail timely when the school is closed (i.e., summer vacation and holidays). Do not use home addresses since officers change frequently. 3. Draft and approve the PTO / booster club bylaws. The Steering Committee may approve the bylaws to allow the group to proceed with applying for incorporation with the State and applying for tax exemption with the IRS. 4. File for incorporation with the Texas Secretary of State by completing Form 202 (Certificate of Formation Nonprofit Corporation) and submitting it to the Texas Secretary of State. Read Forming a Nonprofit Tax-Exempt Corporation in Texas and Texas C-Bar information. As a corporation, individuals governing and operating a nonprofit organization are shielded from liabilities incurred by the organization, unless the individuals are grossly negligent in their duties. On the certificate of formation, the name and address of the corporation s registered agent and office must be provided. A registered agent and office is usually the principal / sponsor and the school s address. In being a registered agent, this person is not taking on any liability or responsibility for the organization, but is only a contact person. You should receive a copy of your certificate of formation from the Texas Secretary of State stamped with the date considered the beginning date the organization. 5. A membership drive should occur to let parents know about the PTO / booster club and when the first membership meeting will be held. At the first meeting, have the general membership approve establishing the PTO / booster club. Then the general membership should approve the PTO / booster club bylaws that were approved by the Steering Committee including any revisions needed. Then elect officers in accordance with the bylaws /21/2017

14 6. Apply for an Employer Identification Number (EIN) with the IRS. The EIN can be requested prior to the first membership meeting if the PTO / booster club bank account needs to be opened at an earlier time. 7. After receiving an EIN, the PTO / booster club can open a bank account. If the bank account is opened prior to the election of officers, the Steering Committee members may be signers on the account. Do not obtain a debit card. If the bank provides a debit card, do not use the debit card for expenses. 8. PTOs Apply for an exemption from Texas sales tax, hotel occupancy tax, and franchise tax by completing AP-207 for Educational Organizations. (Booster clubs cannot apply for an exemption until they have received their 501(c)(3) exemption from the IRS). 9. Apply for a Sales Tax Permit (if required) with the Texas Comptroller s Office. If the PTO / booster club will not be selling any taxable items or services, you do not need to obtain a Texas Sales Tax Permit. 10. Apply for federal tax exemption as a public 501(c)(3) organization with the IRS. The IRS provides information, explanations, guides, forms, and publications about forming a 501(c)(3), see Life Cycle of a Public Charity. Read Top Ten Tips to Shorten the Tax-Exempt Application Process before you submit your application. 11. Receive a Letter of Acknowledgement from the IRS indicating receipt of your application and payment. 12. Correspond with the IRS if your bylaws need to be modified or if the IRS needs additional information to complete your approval process. 13. Receive a Determination Letter (approximately 4-6 months later) stating you are a public 501(c)(3) tax-exempt organization. 14. Send a copy of the Determination Letter to the Internal Audit Department. 15. Booster Clubs Apply for an exemption from Texas sales tax, hotel occupancy tax, and franchise tax by completing AP-204 for Federal Exemptions and all others. 16. Put all of the documents related to these steps in a Permanent File in a safe place to be forwarded to the new officers each year. Also save the information electronically and provide to several officers to help ensure that the information is safeguarded /21/2017

15 Steering Committee New elementary schools or high school clubs may use a steering committee to facilitate the formation of a new PTO / booster club. For PTOs, the steering committee could be comprised of the principal and one or more parent representatives from each of the schools that will be sending children to the new elementary school. For booster clubs, the steering committee could be comprised of the sponsor (teacher) and several parents who have children that participate or will be participating in the school activity for which the booster club is being formed. The steering committee may: Draft and approve bylaws. Have a membership drive. Promote volunteer recruitment. Recruit a slate of proposed officers. Draft a preliminary budget. Hold the first general membership meeting to re-approve the bylaws and elect the officers. During the membership drive and prior to the general membership meeting, have the bylaws and slate of proposed officers made available for public viewing for a reasonable time period. Membership Membership is open to individuals that are parents, guardians, step-parents, or grandparents of a student at the elementary school (PTOs) or of a student active in the sponsored program (booster clubs) and that are current in their dues. PTO membership is also open to teachers and to individuals from a business partner or community organization that is involved in the Adopt a School Program. Only active members should have the ability to vote or hold an office. Other individuals may volunteer for the PTO / booster club, but cannot vote or hold an office. Members should be defined in the PTO / booster club bylaws. Membership Dues PTOs / booster clubs may charge dues to their members; however, parents and teachers do not have to be members of the PTO / booster club for their child(ren) or students to receive benefits from PTO / booster club activities. The dues amount should be voted on by the PTO / Booster Club Board /21/2017

16 Bylaws of Corporation Bylaws are the governing document for the PTO / booster club. They outline the philosophy, structure, and general procedures of the organization. The bylaws are formulated as a series of articles, each dealing with one aspect of the outline. Each PTO s / booster club s bylaws should specify: Name of Organization Purpose: define the charitable purpose of the corporation. The nonprofit needs to make sure the purposes clause is not so narrow that it unduly limits the nonprofit s activities, and not so broad that it prevents the nonprofit from obtaining 501(c)(3) exemption from the IRS. Meetings: the frequency and place of meetings, the type of notice required, and whether directors may vote by written proxy. Leadership: the titles and specific responsibilities of the officers, qualifications for directors, the number of directors, the length of terms for the directors and officers, and the method for electing and removing directors and officers. The corporation must have a president, treasurer, and secretary. Provisions for Membership: qualifications for membership, method of selection, dues and fees, voting rights, and the frequency and place of membership meetings. Quorum: the number of members or directors required for a quorum to conduct business, and the proportion of votes required to take action on a matter (pursuant to Texas law, an act of the board is an act of the majority of the directors present unless a greater number is required by the certificate or bylaws). Financial Policies / Controls: the signatures required for execution of legal documents, signatures required for checks, accounting method (i.e., cash or accrual), number of authorized signers on the bank account(s), and other controls over financial transactions and transfers of corporate assets. Committees: the types of committees, responsibilities of committees, and qualifications for serving on a committee. Fiscal Year: the accounting period of the corporations; which need not be the calendar year. IRS Language: special clauses that relate to (i) the dissolution of the nonprofit, (ii) inurement, and (iii) a general statement that the corporation may not take action that would be inconsistent with the requirements for tax exemption under Section 501(c)(3). It must be stated that, upon dissolution, any remaining assets will be distributed to other organizations exempt under Section 501(c)(3). Bylaw Amendments: the procedures for amending the bylaws. Amendments may be adopted by the Board, but in most cases they require a two-thirds vote of the members at a general meeting. Prior notice of the proposed amendment is always required, either at the previous meeting or at least a certain number of days before the vote. A committee may be appointed to write a revised set of bylaws. This usually requires a vote at a general meeting, but may also be allowed by a twothirds vote of the Board. Requirements for adopting the revised set of bylaws should be the same as for an amendment /21/2017

17 XYZ SCHOOL PARENT ORGANIZATION, INC. BYLAWS OF CORPORATION ARTICLE I NAME 1.1 Name. The name of this corporation is XYZ SCHOOL PARENT ORGANIZATION, INC. ("Corporation"). ARTICLE II PURPOSE 2.1 Purposes. The Corporation is a nonprofit corporation organized exclusively for charitable and educational purposes, including, for such purposes, the making of distributions to organizations that qualify as exempt organizations under section 501(c)(3) of the Internal Revenue Code of 1986, or the corresponding section of any future federal tax code. ARTICLE III The purpose of this Corporation is to assist the directors of the XYZ School Parent Organization in providing financial support to XYZ School / student activity at XYZ School. It shall provide financial support to the school as deemed necessary by the PTO / booster club and provide assistance for student and staff activities. 3.1 Principal Office. The place in this state where the principal office of the Corporation is to be located is the City of Houston, Harris County, Texas. 3.2 Registered Office and Registered Agent. The name of the initial registered agent at the office is Mark White (School Principal). The street address of the Corporation's initial registered office is 4548 XYZ Street, Houston, Harris County, Texas. ARTICLE IV The Corporation shall have and contiguously maintain in the State of Texas a registered agent whose office is identical with such registered office, as required by the Texas Business Organizations Code. The registered office may be, but need not be identical with the principal office of the Corporation, and the address of the registered office may be changed from time to time by the Board of Directors. 4.1 Administration. The Purposes of the Corporation shall be carried out through conferences, committees and projects. The Corporation shall not seek to direct the administrative activities of the school or to control their policies. 4.2 Non-Commercial. The Corporation shall be non-commercial, non-sectarian and nonpartisan. No commercial enterprise or any candidates shall be endorsed by it. The name of the Corporation or its officers in their official capacities shall not be used in any connection with a commercial concern or with any partisan interest or for any purpose other than the regular work of the Corporation /21/2017

18 Cypress-Fairbanks ISD GE-R RELATIONS WITH PARENT ORGANIZATIONS (EXHIBIT C) ARTICLE V MEMBERSHIP 5.1 Membership. The Corporation will have no members. The Corporation may, nevertheless, use the term "Members" to designate those persons having such privileges and status as the Board of Directors may determine. Membership becomes automatic upon payment of dues. The $20 membership dues are payable at the beginning of each school year. However, to have voting rights in the organization, the parent must have a student that is currently active in the program. Anyone else may be a member, but only as a volunteer without voting rights. ARTICLE VI 6.1 General Powers. The affairs of the Corporation shall be managed by its Board of Directors. 6.2 Number and Qualifications. The Board of Directors shall consist of the individuals who hold the offices of President, Vice President, Treasurer and Secretary of the Corporation. The initial Members of the Board of Directors are as follows: NAME OFFICE ADDRESS Joe Smith President 222 Some Road, Houston, TX Jane Doe Vice President 724 Aroad Avenue, Houston, TX John Black Treasurer 345 Another Avenue, Houston, TX Mary Smithe Secretary 889 Deadend Road, Houston, TX The number of directors may be increased or decreased by amending the Bylaws. The number of directors may not be decreased to fewer than three. 6.3 Duties. The duties of the Board of Directors shall be to transact necessary business with integrity and in an ethical manner. 6.4 Meetings. Regular meetings of the Corporation shall be held monthly in a designated location as deemed by the Board of Directors. Notices of such meetings shall be ed or mailed to all members at their addresses as they appear in the membership roll book at least five (5) days before the scheduled date. Proxies are not allowed. 6.5 Quorum. A majority of the Board of Directors shall constitute a quorum for the transaction of business at any meeting of the Board; but if less than a majority of the directors are present at the meeting, a majority of the Directors present may adjourn the meeting from time to time without further notice. 6.6 Manner of Acting. The act of a majority of the Directors present at a meeting at which a quorum is present shall be the act of the Board of Directors, unless the act of a greater number is required by law or by these bylaws. 6.7 Resolutions. No resolutions may be adopted except by the Board of Directors /21/2017

19 6.8 Informal Action by Directors. Any action required by law to be taken at a meeting of the Board of Directors, or any action which may be taken at a meeting of the Board of Directors, may be taken without a meeting if a consent in writing setting forth the action so taken shall be signed by all of the directors. 6.9 Dissolution. Upon the dissolution of the Corporation, assets shall be distributed for one or more exempt purposes within the meaning of section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code, or shall be distributed to the federal government, or to a state or local government, for a public purpose. Any such assets not so disposed of shall be disposed of by a Court of Competent Jurisdiction of the county in which the principal office of the Corporation is then located, exclusively for such purposes or to such organization or organizations, as said Court shall determine, which are organized and operated exclusively for such purposes Restrictions & Requirements. No part of the net earnings of the Corporation shall inure to the benefit of, or be distributable to its members, trustees, officers, or other private persons, except that the Corporation shall be authorized and empowered to pay reasonable compensation for services rendered and to make payments and distributions in furtherance of the purposes set forth in Article Two hereof. No substantial part of the activities of the Corporation shall be the carrying on of propaganda, or otherwise attempting to influence legislation, and the Corporation shall not participate in, or intervene in (including the publishing or distribution of statements) any political campaign on behalf of or in opposition to any candidate for public office. Notwithstanding any other provision of these articles, the Corporation shall not carry on any other activities not permitted to be carried on (a) by a corporation exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code, or (b) by a corporation, contributions to which are deductible under section 170(c)(2) of the Internal Revenue Code, or the corresponding section of any future federal tax code. The Corporation may not take any action prohibited by the Texas Business Organizations Code. ARTICLE VII OFFICERS 7.1 Officers. The officers of the Corporation shall be a President, Vice President, Secretary and Treasurer. The organization must have a President and Treasurer. One person cannot do both responsibilities. No spouses or family members can hold position of President and Treasurer at one time. Officers shall take office at the first regular meeting and serve for a term of one year or until their successors are installed. All records and information shall be provided to the new officers at the beginning of their term. 7.2 Designation of Officers. The officers of the Corporation shall be elected annually at the last regular meeting of the school year. Each officer shall hold office until his successor shall have been duly elected and shall have been qualified, or until his death, or until he shall resign or shall have been removed in the manner hereinafter provided. 7.3 Vacancies. Vacancies occurring during the term of office shall be filled by the Board of Directors. 7.4 Removal from Office. If an officer is not fulfilling the duties or is violating school or PTO / Booster Club Policy, they may be removed from office. The Principal and / or the Board of Directors may approve the removal of an officer /21/2017

20 7.5 Compensation. All officers are volunteers, and none are paid any compensation for services performed. ARTICLE VIII DUTIES OF OFFICERS 8.1 President. The President shall be the principal executive officer of the Corporation and shall in general supervise and control all of the business and affairs of the Corporation. He or she shall preside at all meetings of the Corporation, the Board of Directors, and shall be exofficio member of all committees. He or she may sign, with the Secretary or any other proper officer of the Corporation authorized by the Board of Directors, any contracts or other instruments which the Board of Directors has authorized to be executed, except in cases where the signing and execution thereof shall be expressly delegated by the Board of Directors or by these bylaws or by statute to some other officer or agent of the Corporation; and in general he or she shall perform all duties incident to the office of President and such other duties as may be prescribed by the Board of Directors from time to time. 8.2 Vice President. In the absence of the President or in the event of his or her inability or refusal to act, the Vice President shall perform the duties of the President, and when so acting shall have all the powers of and be subject to all the restrictions upon the President. 8.3 Treasurer. The Treasurer shall have charge and custody of and be responsible for all funds and securities of the Corporation; deposit all such moneys in the name of the Corporation in such banks, trust companies, or other depositories as shall be selected in accordance with these bylaws; and in general perform all the duties incident to the office of Treasurer and such other duties as from time to time may be assigned to him or her by the President or by the Board of Directors. The Treasurer shall present a statement of account at every meeting of the Corporation and at other times when requested by the Board of Directors and shall make a report at the Spring and Fall meetings. The Treasurer's books shall be subject to audit annually by a committee of three members appointed by the President at the spring meeting. The Treasurer's books shall be closed by July 31 of the fiscal year (end of the fiscal year). 8.4 Secretary. The Secretary shall keep the minutes of the meetings of the members of the Board of Directors in one or more books provided for that purpose; give all notices in accordance with the provisions of these bylaws or as required by law; be custodian of the corporate records; keep a register of the address of each member which shall be furnished to the Secretary by each member; and, in general, perform all duties incident to the office of Secretary and such other duties as from time to time may be assigned to him or her by the President or by the Board of Directors. ARTICLE IX COMMITTEES 9.1 Executive Committee. The Executive Committee shall consist of the officers of the PTO / Booster Club. Its duties shall be to transact necessary business between club meetings and such other business as may be referred to it by the organization; to approve the plans of work of the standing committee chairpersons; and to present reports at the regular meetings. Special meetings of the Executive Committee may be called by the President or by a majority of the committee's members. 9.2 Standing Committees. There shall be such standing committees created by the Executive Committee as may be required to promote the objectives and purposes of the organization. The chairpersons of the standing committees shall be appointed or selected by the newly elected Executive Board. Their term of office shall be for one year /21/2017

21 The PTO s / booster club s current standing committees are: fine arts, fundraising, webmaster, and field day. ARTICLE X FINANCIAL INFORMATION 10.1 Budget. A budget shall be prepared at the beginning of each fiscal year and approved at a general membership meeting. Any amendments to the budget shall be approved by the Board of Directors Checks and Drafts. All checks, drafts, or orders for the payment of money, notes- or other evidences of indebtedness issued in the name of the Corporation shall be signed by the Board President and Treasurer. The Corporation should have one back-up signer in the event one of the regular signers is not available Deposits. All funds of the Corporation shall be deposited in a timely manner to the credit of the Corporation in such banks, trust companies, or other depositories as the Board of Directors may select Books and Records. The Corporation shall keep correct and complete books and records of account and shall also keep minutes of the proceedings of its members, Board of Directors, and committees having any of the authority of the Board of Directors, and shall keep at the registered or principal office a record giving the names and addresses of the members entitled to vote. All books and records of the Corporation may be inspected by any member or his or her agent or attorney for any proper purpose at any reasonable time. All books and records must be provided to the succeeding members at the time of their election Fiscal Year. The fiscal year of the Corporation shall begin on the first day of July and end on the last day in June Annual Returns. The Corporation shall submit an annual return to the IRS (990, 990-N, 990- EZ.) 10.7 Sales Tax Report. The Corporation shall submit an annual sales tax report to the Texas Comptroller s Office Financial Report. The Corporation shall submit an Annual Financial Report to the Principal, the Sponsor, and to the Director of General Administration (Booster Clubs) or to the Principal and the Director for Marketing and Business Relations (PTOs) by September 15 of each year Fundraising. All fundraisers require the approval of the Principal / Sponsor. ARTICLE XI MISCELLANEOUS 11.1 Conflict of Interest Policy. The Board of Directors shall avoid any conflict between their personal interests and the interest of the Corporation. The Board of Directors shall avoid actual conflicts of interest and the appearance of conflicts of interest. The Board of Directors shall perform the day-to-day duties with integrity and in an ethical manner Contracts. The Board of Directors may authorize any officer or officers, agent or agents of the Corporation, in addition to the officers so authorized by these bylaws, to enter into contract or execute and deliver any instrument in name of and on behalf of the Corporation. Such authority may be general or confined to specific instances. All expenditures must be approved by the Board of Directors before they are made /21/2017

22 11.3 Donations. The Board of Directors may accept on behalf of the Corporation any contribution, gift, bequest or devise for the general purposes or for any special purpose of the Corporation. ARTICLE XII SPECIAL PROVISIONS 12.1 Funds. At the close of the fiscal year, the Corporation shall remit $2,500 for the succeeding PTO / Booster Club. ARTICLE XIII AMENDMENTS 13.1 Amendments. These bylaws may be amended at any regular or special meeting of the Board of Directors by a two-thirds vote of the members present and voting, following notices of the proposed amendment at a previous regular or special meeting of the Board of Directors. ARTICLE XIV RULES OF ORDER 14.1 Rules of Order. Except as provided in these bylaws, the rules contained in Roberts Rules of Order Newly Revised shall govern the Corporation s operation. ADOPTION OF BYLAWS The undersigned a majority of whom are citizens of the United States and over the age of 18; desiring to form a Non-Profit Corporation under the Texas Business Organizations Code, do hereby approve to adopt the above stated bylaws of XYZ School Parent Organization, Inc., this day and year shown below. Dated: / / Dated: / / Dated: / / Dated: / / Joe Smith, President Jane Doe, Vice President John Black, Treasurer Mary Smithe, Secretary /21/2017

23 Obtaining an Employer Identification Number Every organization must have an employer identification number (EIN), even if it will not have employees. The EIN is a unique number that identifies the organization to the IRS. Since PTOs / booster clubs are separate entities from the district, PTOs / booster clubs cannot use the district's EIN. An organization is not automatically considered tax-exempt by acquiring an EIN. All organizations must first apply for an EIN to be recognized as a unique entity and then apply for tax-exempt status. Likewise, the mere fact that an entity is organized as a nonprofit organization does not indicate that it is exempt from federal tax. PTOs / booster clubs may obtain an EIN by applying online. Once the application is completed, the information is validated during the online session, and an EIN is issued immediately. No fee is required for obtaining an EIN. After receiving your EIN, you may use it to then open a bank account and obtain a State Sales Tax Permit. PTOs / booster clubs should not use an individual s social security number to conduct the business of the organization /21/2017

24 Texas Sales Tax Permit Obtaining a Texas Sales Tax Permit To sell any taxable items within the State of Texas, a PTO / booster club must apply for a Sales Tax Permit. The sale of goods includes fundraisers, such as candy sales, t-shirt sales, and sales of other taxable items. In addition, some PTOs / booster clubs may sell services that are taxable. If the PTO / booster club is acting as an agent for a vendor, then the sales tax is the responsibility of the vendor. This situation would not require that a PTO / booster club to have a Sales Tax Permit. PTOs / booster clubs may obtain a Texas Sales Tax Permit by submitting the completed applications to the Texas Comptroller s Office. You must apply on-line for the Texas Sales Tax Permit. A Texas Sales Tax Permit will be issued to the PTO / booster club along with a Sales Tax Permit Number. The Texas Sales Tax Permit Number has 11 digits. PTOs / booster clubs cannot use the District's Sales Tax Permit Number. If your PTO will not be selling any taxable items or services, you do not need to obtain a Texas Sales Tax Permit. Reporting Requirements If the PTO / booster club has a Texas sales tax permit, the Texas Comptroller s Office requires that the PTO / booster club file at least one sales tax report per calendar year. The frequency of filing the sales tax report is determined by the Texas Comptroller s Office. The amount of anticipated sales tax payments affects the frequency of reporting. The sales tax reports may be due monthly, quarterly, or annually. Since sales tax payments may vary from year to year, the frequency of reporting can also change. The Texas Comptroller s Office will generally communicate changes in filing requirements to the PTOs / booster clubs in writing. In addition, the Texas Comptroller s Office will generally mail the required reporting form and information to organizations that have obtained a Sales Tax Permit. Even if the PTO / booster club did not make any sales or all sales were nontaxable, a sales tax report must be filed /21/2017

25 Public 501(c)(3) Tax-Exempt Status Benefits / Restrictions of a Public 501(c)(3) Tax-Exempt Organization The IRS Tax Code provides for special treatment of certain organizations identified as "tax-exempt." Some benefits to becoming tax-exempt as a public 501(c)(3) organization include: 1. Taxes are not paid to the IRS for revenues raised, and 2. Contributions to certain tax-exempt organizations [501(c)(3)] are tax-deductible by the contributor. However, the following are restrictions placed on tax-exempt organizations that PTOs / booster clubs must follow to receive tax-exempt status and to retain that status: The PTO / booster club must benefit a campus/organization as a whole instead of benefiting individual members of a campus/organization. In some instances, individuals may not be able to afford to pay the amount owed to participate in a particular event. The IRS has indicated that an organization may establish criteria that could be used to determine if an individual is in financial need. If the criteria are met, the organization could provide the necessary funds to allow the individual to participate. One criterion could be whether the student is on the free/reduced lunch program. The criteria should be established in writing prior to a particular situation arising. In addition, the criteria should be used consistently for all individuals, and the criteria should not change every year. The PTO / booster club cannot use individual accounts. "Individual accounts" are used by an organization to record a credit to an individual (participant) based on revenues raised. The organization would offset that individual's expenses with the amount credited to that individual from the revenues raised. The PTO / booster club cannot require a person to participate in fundraising activities. The PTO / booster club cannot require that a certain amount be raised or sold per person. See additional details in the Fundraising Guidelines. Applying for Public 501(c)(3) Tax-Exempt Status Tax-exempt status is not automatic once an EIN has been issued; organizations must apply for tax-exempt status. According to the IRS, an organization is either a taxable organization or a tax-exempt organization. According to Board Policy GE (Local), all PTOs / booster clubs must obtain tax-exempt status with the IRS as a public 501(c)(3) organization. Only the 501(c)(3) status allows any donations to be deductible on the contributor's tax return. The PTO / booster club officers should take the necessary steps to ensure they follow the regulations regarding that type of entity. To apply for 501(c)(3) status, the forms required, the user fee, the filing deadline, and the processing procedures as discussed below /21/2017

26 Form 1023-EZ Small organizations may file Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, instead of Form 1023, and pay the required user fee. Form 1023-EZ must be filed electronically at Pay.gov. A user fee of $400 is required to process your application. This fee must be paid through when you file your application. Payments can be made directly from your bank account or by credit/debit card. To submit Form 1023-EZ, you must: 1. Read the Instructions for Form 1023-EZ and complete its Eligibility Worksheet found at the end of the instructions. 2. If eligible to file Form 1023-EZ, register for an account on 3. Enter "1023-EZ" in the search box. 4. Complete the form and pay the user fee of $400. If you are not eligible to file Form 1023-EZ, you can file, Form 1023, Interactive. Form 1023, Interactive Form 1023, Interactive, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, includes helpful hints and links to help applicants submit a complete application. 1. Complete Form 1023, Interactive. 2. Pay the required fee of $400 or $850. Your user fee may be paid by personal or certified check, bank check, or cashier s check. Your check should be made payable to the United States Treasury. 3. Mail completed Form 1023, user fee payment, and all other required information to the Internal Revenue Service. Filing Fee The filing fee is $400 if your annual gross receipts averaged no more than $10,000 during the last 4 years or if you are a new organization that does not anticipate annual gross receipts exceeding $10,000 during your first 4 years. The filing fee is $850 if your annual gross receipts averaged more than $10,000 during the last 4 years or if you are a new organization that anticipates annual gross receipts exceeding $10,000 during your first 4 years. Annual gross receipts: The total amount of revenue collected by an organization during its reporting year from any source. Sources may include, but are not limited to, membership fees, donations, fundraising revenues, amounts collected for the payment of expenses (e.g., uniforms, trips), and any other amounts received. To determine annual gross receipts: - Add all deposits made to the PTO s / booster club s bank account(s), /21/2017

27 Fiscal Year-End - Add cash on hand that was not deposited by the end of its reporting year, - Less transfers from one bank account to another, and - Add expenses paid with money collected that was not deposited in the PTO s / booster club s bank account(s). When completing the IRS Form 1023, PTOs / booster clubs will establish their fiscal year-end (also known as the accounting period year-end or official year-end). Once this date is established, the IRS does not easily allow an organization to change it. Changes are usually only allowed for extreme circumstances. The date established will determine when the PTO / booster club has to file their informational return (Form 990) to the IRS. The return is due 4 ½ months after the end of a fiscal year (the 15 th day of the 5 th month after the organization s accounting period ends). When considering a fiscal year-end date, you may wish to align your year-end with the school s year-end date of June 30. This way, the financial activity of the club can relate easily to a given school year. Second, the current officers can prepare the annual Financial Report and have it audited before the new school year begins. Third, PTOs / booster club Form 990 would not be due to the IRS until November 15; therefore, the new officers would have time to prepare it after beginning the new school year. IRS Approval Process The IRS approval process for tax-exempt status usually takes several months. They will send the organization an Acknowledgement of Your Request letter that indicates your application and fee were received and are being processed. Upon approval by the IRS of the tax-exempt status, the organization will receive a Determination Letter stating that the organization is considered to be tax-exempt as of a certain date. Only then can the organization represent itself as a federally tax-exempt organization. Send a copy of the Determination Letter to the district's Internal Audit Department when received. Likewise, donations to the organization are only deductible on the contributor s tax return as of the effective date on the Determination Letter received by the PTO / booster club granting 501(c)(3) tax-exempt status and within set guidelines that apply to 501(c)(3) organizations. If the IRS does not grant tax-exempt status, the organization will receive a Letter of Denial stating the organization is not considered tax-exempt. If a PTO / booster club has not received their IRS tax exemption, the organization must clearly state in all advertisements that donations to the organization are not tax-deductible so that a contributor is not misled and does not incur penalties levied by the IRS for taking the deduction erroneously /21/2017

28 Texas Sales and Franchise Tax Exemptions To apply for Texas Sales and Use Tax and Franchise Tax Exemptions, PTOs should use application AP-207 prior to receiving your federal exempt status from the IRS. Booster clubs must receive their IRS tax-exempt status as a 501(c)(3) organization before they can apply for this exemption. Booster clubs should complete application AP-204. The sales and use tax exemption allows approved organizations an exemption from sales tax when purchasing items to further the organization s exempt purpose. This exemption process is separate and in addition to applying for federal tax-exemption from the IRS. PTOs / booster clubs with the sales tax exemption are entitled to two (2) one-day, tax-free sales or auctions per calendar year. One day is counted as 24 consecutive hours and a calendar year is the 12- month period from January through December. Either the date on which the items are delivered by the vendor to the PTO / booster club or the day on which the PTO / booster club delivers the items to its customers may be designated as the one-day tax-free sale day. The PTO / booster club must be granted the exemption first to be entitled to the two (2) one-day, taxfree sales or auctions per calendar year /21/2017

29 SECTION 3 FINANCIAL GUIDELINES

30 Contact List District Financial Issues Janett Tapia-Gonzalez Internal Auditor II State Incorporations Texas Secretary of State Sales Tax (Sales Tax Permit, Sales Tax Exemption, Sales Tax Reports, and Franchise Tax) Federal Texas Comptroller s Office Exempt Organizations Department IRS Exempt Status as a 501(c)(3) Organization and Tax Returns Internal Revenue Service (IRS) Tax-exempt Organizations Charities & Nonprofits Tax Forms & Publications /21/2017

31 PTO/Booster Club Checklist The following checklist serves as a guide to help ensure that your PTO / booster club has complied with the District s Board Policies and Guidelines along with federal and state regulations governing PTOs / booster clubs. This checklist should be completed annually and also if the treasurer changes during the year. District Requirements Provide list of officers to the Principal/Sponsor. Official mailing address: Bank Account(s): Bank Name Account Number Authorized signers on bank account(s): Name Position Held Employer identification number (EIN): (This number is issued by the IRS and is the ID number for the bank account.) Provide a copy of the Financial Report and Review Report to the School Principal, Sponsor and Director of General Administration (for Booster Clubs), and to the Director of Marketing and Business Relations (for PTOs) by Sept. 15, of each year. Provide a copy of the Financial Report and Review Report at a meeting that includes the general membership by Oct. 31, of each year or have it available at the school's front office with the Principal s approval. If your bylaws have been revised in the past year, send a copy to the Director of Marketing and Business Relations as well as the school principal. Texas Comptroller's Office Requirements Determine whether the PTO / Booster Club has a Texas Sales Tax Permit by searching the Texas Comptroller's information using the web link below: Sales Taxpayer Search Sales Taxpayer ID #: 3.2 8/21/2017

32 If the PTO / booster club has an active or inactive sales tax permit, call the Comptroller's Office at and confirm if required sales tax reports have been submitted. If the PTO / booster club has a Texas Sales Tax Permit, a Texas Sales Tax Report MUST be submitted to the Comptroller's Office at least annually whether or not any taxable sales occurred. Some organizations must file quarterly or semi-annually. Determine if the PTO / booster club is incorporated by calling the Secretary of State at Determine whether the PTO / Booster Club had a Sales and Use Tax and Franchise Tax Exemptions by searching the Texas Comptroller's information using the web link below: Texas Tax-Exempt Entity Search IRS Requirements Determine whether the PTO / Booster Club has a 501(c)(3) tax-exempt status from the IRS by searching both web links below by using the EIN or name of the organization: Eligible to Receive Tax-Deductible Charitable Contributions Were Automatically Revoked A PTO / Booster Club MUST annually file the appropriate 990 form with the IRS within 4½ months after the PTO / booster club official year end. Issue 1099 forms to applicable individuals or businesses by Jan. 31, of each year. If 1099 forms are issued, send information to the IRS by Feb. 28, of each year /21/2017

33 Financial Responsibilities Accounting Controls and Procedures A PTO / booster club must have a President and Treasurer in order to operate. One person cannot do both responsibilities since these positions act as a check and balance and provide good internal controls. A PTO / booster club cannot have spouses or family members hold the office of President and Treasurer at the same time. The term of office for the Treasurer should be limited to two (2) years. Because some PTOs / booster clubs may have difficulty in filling this position, the PTO / booster club can vote to extend the position to a third term if evidence is provided that shows the Treasurer has fulfilled their duties, such as submitting required information to the Principal / Sponsor, the IRS, and the Texas Comptroller s Office. If the term of office for the Treasurer needs to be extended beyond the third year, the position opening must first be communicated to the parents, such as through the school newsletter or other means. If no one wishes to fill this position, then the PTO / booster club can vote to extend the term of the Treasurer if evidence is provided again to show that the Treasurer has fulfilled their duties. Remember that only active members may hold an office. PTOs / booster clubs should include written instructions on the recording of accounting transactions in their bylaws, such as accounting method (cash vs. accrual), number of authorized signers on the bank account(s), and number of authorized signatures required for each check. All transactions should be recorded in the organization s financial records. The organization s books and bank accounts should be reconciled monthly. PTOs / booster clubs may provide support to their school in two manners: a) PTO / booster club members raise funds for the school. Funds are deposited into the organization s bank account. The PTO / booster club writes a check to the school. The school deposits the funds into an activity fund at the school. The funds then belong to the school, to be spent at their discretion. The school should issue a Contribution Acknowledgment Form and record the money received as a donation to the school. All accounting and safeguarding of the funds is the responsibility of the school, once the school has received the funds. The IRS prefers that 501(c)(3) organizations use this method, since it provides the cleanest procedure to track how the PTO / booster club spends its revenues. Using this method, the PTO s / Booster Club s Financial Report would show a clear path of revenues generated and expended exclusively for its purpose, to support the school. In addition, this method reduces the amount of paperwork and responsibility for the PTO / booster club related to the accounting for the revenues and expenses of the school. b) PTO / booster club members raise funds for the school. Funds are deposited into the organization s bank account. The PTO / booster club writes checks to the individual vendors for the expenses related to the school through their bank account. All accounting and safeguarding of the funds is the responsibility of the PTO / booster club /21/2017

34 Bank Accounts PTOs / booster clubs should set up a bank account with the organization s EIN number. A person s social security number or the district s EIN number cannot be used to set up a bank account. According to Board Policy GE (Local), A district employee cannot be the Treasurer or an authorized signer on the PTO s / booster club's bank account(s). A district substitute or temporary worker may be a Treasurer or authorized signer on the bank account of a PTO / booster club with written approval from the Principal or supervisor where the organization is located and the Associate Superintendent for Business, Financial, and Technology Services. This Authorization for Signer on PTO & Booster Club Bank Accounts must be requested and received each school year. The written approval must be kept on file with the District s Internal Auditor (see Forms in this section). The district recommends that at least two authorized signatures be required for each check written to assist in establishing good internal controls over check disbursements. If a PTO / booster club requires two signatures for check disbursements, the bank account(s) should have at least three authorized signers to allow at least one back-up signer if one of the regular signers is not available. Each month, the bank statement should be received, opened, and reviewed by an officer without signature authority (that is not a signer) on the organization s bank account. This person should review checks written to signers, check that all activity (deposits and expenditures) seems normal, and balance seems reasonable. Then the bank statements would be given to the Treasurer. Bank account(s) should be reconciled monthly. PTOs / booster clubs should not use debit cards to pay for expenditures. Carry-Over Balances No rule or regulation exists concerning the amount of funds that a PTO / booster club can have in their account. The PTO / booster club should have a minimum amount that would be carried over to the new officers so that they have some money to start the new year. While not required, it is recommended that each PTO / booster club carry over approximately $2,500 from year-to-year. Excess money should be earmarked for specific purposes, and designated as such in the Treasurer s records. No special forms need to be filed with the IRS or the district for this earmarked money. The PTO / booster club should spend the funds raised during the year that it raised the funds. This allows students and parents to see the benefits from the funds raised. The PTO / booster club may save the money raised over a couple years for a large item or trip. Be sure to inform the membership of why an excess in funds exist. Explain how the funds will be used. Collections for Specific Individuals or Families Although staff, students, and parents want to assist individuals and families in times of need, service projects or fundraisers may not be held by PTOs, booster clubs, student groups, schools, or the district for individuals or families for death or injuries in tragic accidents, major illnesses, fires, or any other reason. Collecting or raising funds for these situations must be done by the family setting up a special account at a financial institution. Donations can be made by individuals or businesses by sending checks to the financial institution for the particular individual or family. Also individuals or families may set up online accounts to receive funds. For donors, contributions to individuals or families are not tax deductible for income tax purposes. For the individuals or families, the money received is taxable /21/2017

35 Conflict of Interest Officers and members must avoid any conflict between their personal interests and the interest of the PTO / booster club. Officers and members must avoid actual conflicts of interest and the appearance of conflicts of interest. Officers and members must perform the day-to-day duties with integrity and in an ethical manner. Contributions / Donations Received PTOs / booster clubs may receive monetary or non-monetary contributions from individuals or businesses. In addition, those PTOs / booster clubs that have received a Determination Letter from the IRS granting 501(c)(3) tax exemption are allowed to receive tax-deductible contributions in accordance with IRS Regulation 170. To allow the individuals or businesses to deduct these contributions on their tax returns, the PTO / booster club must provide them the organization s EIN and indicate that the PTO / booster club is a 501(c)(3) organization. If your organization is not a 501(c)(3), contributions or donations are not tax-deductible. In addition, you must inform the individual or business that the contributions or donations are not tax-deductible. For contributions received, the PTO / booster club may want to send a thank you note that includes the EIN number for your organization. For contributions of $250 or more, a note is required. For cash contributions, the thank you note should indicate the name of your organization, the date of the contribution, and the amount of the contribution. For noncash contributions, the thank you note should indicate the name of your organization, the date and location of the contribution, and a reasonable detailed description of the property. The estimated value should not be included in the thank you note. It is the responsibility of the individual or business that provided the gift to determine the value that they would report on their tax return. If contributor/donor requests a copy of the PTO / booster club donation letter, provide a copy to them. Even though contributions or donations received will ultimately support the student group at a school, the gift is still considered to be a gift to the PTO / booster club and not to the school or to the district. Quid Pro Quo Contributions Received According to the IRS, a charitable organization, such as a PTO / booster club that is a 501(c)(3) organization, must provide a written disclosure statement to donors who make a payment, described as a quid pro quo contribution, in excess of $75. A quid pro quo contribution is a payment made partly as a contribution and partly for goods or services provided to the donor by the charitable organization. An example of a quid pro quo contribution is where the donor gives a PTO / booster club $100 in consideration for a concert ticket valued at $40. In this example, $60 would be deductible. Because the donor s payment (quid pro quo contribution) exceeds $75, the disclosure statement must be furnished, even though the deductible amount does not exceed $75. Separate payments of $75 or less made at different times of the year for separate fundraising events should not be aggregated for the purposes of the $75 threshold. The required written disclosure statement must: 3.6 8/21/2017

36 1) Inform the donor that the amount of the contribution that is deductible for federal income tax purposes is limited to the excess of any money (and the value of any property other than money) contributed by the donor over the value of goods or services provided by the charitable organization, and 2) Provide the donor with a good-faith estimate of the value of the goods or services that the donor received. The PTO / booster club must furnish the statement in connection with either the solicitation or the receipt of the quid pro quo contribution. If the disclosure statement is furnished in connection with a particular solicitation, it is not necessary for the organization to provide another statement when the associated contribution is actually received. Given When the PTO / booster club contributes directly to the school, the PTO / booster club should receive a Contribution Acknowledgment Form from either the school or the District. A district employee should complete the form and give the original copy to the PTO / booster club for their records. Example: Yippee PTO is funding a portion of the 5th grader s camping trip. The trip costs $5,000, and the PTO has agreed to pay $3,500 of the expense. Therefore, the students or school must pay the remaining $1,500. The $3,500 that the PTO donated is considered a contribution to the district and should be documented on the Contribution Acknowledgment Form. The school may request that a PTO / booster club provide a list of contributions made to the school. The Contribution Acknowledgment Form may reference this list; thus, eliminating the need to have a form completed for each contribution. The schools are required to report contributions received at least at the end of each semester; therefore, your school may request the list of contributions from PTOs / booster clubs twice a year. The Contribution Acknowledgment Form should be kept with the PTO s / booster club s financial records. The form can be used as substantiation to the IRS that the PTO / booster club is using the funds raised in the manner approved by the IRS as a 501(c)(3) organization. If students from the PTO s / booster club s school are being transferred to a new school, the PTO / booster club may donate funds to the feeder school s PTO / booster club. The amount donated may be calculated based on the amount of students transferring to the feeder school. The total amount donated is up to the PTO / booster club. Corporation Reporting A nonprofit corporation is required by law to file an informational report not more than once every four years upon request by the Secretary of State. The report provides information regarding the corporation s registered agent and registered office (preferably the Principal / Sponsor and school address), and the names and addresses of its current officers, and is required regardless of the corporation s tax status. Once requested, the report must be completed and filed with the Secretary of State to avoid termination of the corporation. Expenses For expenses of the PTO / booster club, the appropriateness of an expense depends on the purpose of the organization. A PTO would focus on the school as a whole; whereas, a booster club would focus on a particular student activity /21/2017

37 A PTO / booster club should not have a PayPal account that is used for purchases. Funds may be used for expenses for the normal operation of the PTO / booster club and funds may be used for the following: Door prizes at meetings through a drawing Old / New Officer Luncheon, if amount is reasonable Old / New Officer Luncheon for Principal and Assistant Principal, if amount is reasonable Assistance in providing a conducive learning environment including: Instructional materials and equipment for the school / school program Playground equipment for the school Books for the school library Provide incentives to teachers and staff for staff morale and recognition (by the PTOs) such as: Gift certificates to staff through a drawing Gift certificates to teachers for school supplies through a drawing The funds raised or donations received by a PTO / booster club may be used for the following immaterial items: Food and drinks at meetings Paper products at meetings Hard candy at the Volunteer Sign-in Desk Drinks for volunteers at Summer Registration Pens and pads at Volunteer Orientation and Appreciation Sympathy cards to officers Loss of immediate family members Sympathy cards to staff at school Loss of immediate family member End of Year Awards to Volunteers Every volunteer that worked a certain amount of time would receive the award The PTO / booster club funds cannot be used for: Gifts to Principals / Sponsors Gifts to the President / Officers Gifts to Retiring School Administrators Old / New Officer Luncheon, if amount is not reasonable Old / New Officer Luncheon for Principal and Assistant Principal, if amount is not reasonable Alcohol Please note that amounts expended for PTO / booster club officers are under stricter guidelines by the IRS than other members of the PTO / booster club or school staff /21/2017

38 Financial Aid Guidelines Tax-exempt organizations must benefit a group as a whole instead of benefiting individual members of a group. Since PTOs / booster clubs usually assist schools, all students of the school are to be treated equally and receive the same opportunity to benefit from the PTO s / booster club s assistance. Therefore, one student cannot receive a greater benefit than another unless the criteria for financial need discussed below is met. In some instances, individuals may not be able to afford to pay the amount owed to participate in a particular event. The IRS has indicated that a group or club may establish criteria that could be used to determine if a person is in financial need. If the criteria is met, the group or club could provide the necessary funds to allow the individual to participate. The criteria should be established in writing prior to a particular situation arising. In addition, the criteria should be used consistently for all people, and the criteria remains consistent and it should not change each year based on a particular student or family. Financial and Review Reports Each year PTOs / booster clubs are required to submit a written report of actual revenues and expenditures for that school year to the Principal, Sponsor and Director of General Administration (for Booster Clubs, and the Director of Marketing and Business Relations (for PTOs),) by Sept. 15, of the following year. The Financial Report and Review Report are not audited by the District. The Financial Report and the Review Report must be presented at a PTO / booster club meeting that includes its general membership by Oct. 31, of each year, or a copy should be available at the school s front desk for review. Financial Report The Treasurer should prepare a written PTO / Booster Club Financial Report and should ensure that the Financial Report includes: Name of school, name of PTO / booster club, and the time period covered in the report. Actual revenues and expenditures for the applicable school year. The current year report should start at the point in time where the prior year report ended. Since PTOs / booster clubs may start their new year at various times, the time period used for reporting actual revenues and expenditures may vary from organization to organization; however, the individual PTOs / booster clubs should try to be consistent in the time period they use from year to year. Name, title, and signature of person who prepared the report. Date the report was prepared. The following examples of Financial Reports are included in this section (see pages 18-20): Type 1 (easiest to prepare) This example is a cash basis financial report that includes the beginning and ending cash balances for the year. Money received is usually shown as income and money paid is usually shown as an expense. The beginning cash balance for the current year should agree to the ending cash balance from the prior year /21/2017

39 Type 2 - This example is an accrual basis financial report that includes assets, liabilities, equity, income, and expenses. This report would include the cash transactions, but would also show amounts to be received or amounts to be paid in which money has not yet been exchanged, prepayments of expenses that have not yet been incurred, or receipt of amounts in which income is not yet recognized. The retained earnings amount should agree to the total equity amount from the prior year. Review Report Each PTO / booster club is required to have an organizational committee conduct an annual review of the organization's Financial Report and the related financial activity for the school year. The review may be internal or external. An internal review committee includes officers and organization members; however, the committee should have at least one non-officer member review the information. A CPA or other outside party may perform an external review at the PTO s / booster club s expense. The organizational review committee, whether internal or external, should prepare a written Review Committee Report that communicates the results of the review to the organization. The Treasurer(s) [and Assistant Treasurer(s), if applicable] should not be on the Review Committee. Since they are reviewees, they cannot also be the reviewers. However, they may meet with the committee or external reviewer to explain their records or answer questions. An internal Review Committee should use the examples of Review Reports included on pages However, an external party should show the results of the review in their own report format with their signature and date included. Although the examples included show spaces for four (4) members, the PTO / booster club may have more or fewer committee members. However, the same information must be documented for each committee member (as opposed to the group as a whole), regardless of the size of the committee. The following suggested guidelines are designed to assist the PTO / Booster Club Review Committee in conducting a thorough review of the PTO s / Booster Club's Financial Report and the financial activity for the applicable school year. Have the Treasurer prepare the written report of revenues and expenditures (Financial Report) for your PTO / booster club. The report should include information for the twelve months after the ending date of the previous year s Financial Report. The review must cover the period beginning with the reconciled cash balance from the previous written Financial Report and ending with the reconciled cash balance from the last day of the time period reported by the PTO / booster club. If the PTO / booster club is using an accrual basis financial report, then the beginning retained earnings should equal the prior year s ending retained earnings balance plus/(minus) net income/(loss) for the current year. Review the reconciled bank statements and canceled checks to determine that: 1) Disbursements have been properly documented with an invoice or receipt, 2) Disbursements have been properly approved, 3) Checks have been properly signed, /21/2017

40 4) Checks have been deposited or cashed by the payee indicated and that no information on the face of the check has been altered, and 5) Checks have been accounted for in the proper sequence (no missing checks). Check addition and subtraction on cash receipts and deposits. Compare cash receipts and deposits to the bank statement. Verify that receipts and disbursements were recorded to the correct account category. 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. Determine that only applicable PTO / booster club officers are authorized signers on the bank account(s). Former officers should not remain on the account(s) as authorized signers. In addition, a district employee cannot be the Treasurer or an authorized signer on the PTO s / booster club's bank account(s). A district substitute or temporary worker may be a Treasurer or an authorized signer on the PTO s / booster club s bank account(s) with proper written approval. (See Authorization for Signer on PTO & Booster Club Bank Accounts on page 17.) Obtain proof that all applicable sales tax reports were submitted to the Texas Comptroller s Office and that the related taxes were paid. Determine which two fundraisers were chosen to be the one-day, tax-free sales/auctions, if applicable. Only PTOs / booster clubs that have received an exemption from the Texas Comptroller s Office are allowed two (2) one-day, tax-free sales/auctions per calendar year. Review the tax-exempt status of the PTO / booster club to determine that the organization has received and maintained its federal tax-exempt status as a public 501(c)(3) charitable organization or other taxexempt status deemed by the IRS. Determine that the appropriate IRS 990 form was filed as discussed in the IRS section below. Determine that the PTO / booster club has not used individual accounts, which credit funds raised to individual students or parents. Verify that 1099s were issued, if applicable. In general, you may have to issue a 1099-MISC (Miscellaneous Income) for each person to whom you have paid at least $600 in rents, services, prizes & awards, attorney fees, and other similar situations within a calendar year. Example: XYZ Booster Club hires a consultant during the Spring of the school year for a $300 fee. The consultant is hired again in the Fall of school year for a $300 fee. The Booster Club should issue a 1099-MISC form to this person since the total paid within the 2014 calendar year is $ /21/2017

41 After the review is complete, prepare the applicable Review Report (only one report type may be used per review): Option A Option B Option C No Exceptions (i.e., errors, irregularities) Immaterial Exceptions Material Exceptions Financial Report appears proper and correct Financial Report appears proper and correct, except for some immaterial exceptions Financial Report does not appear proper and correct because of material exception(s) or Financial Report status cannot be determined because of material exception(s) If exceptions are noted during the review, consult with the organization's Treasurer and President (if necessary) to resolve the exception(s). The Treasurer is responsible for making any corrections to the records, checkbook, and Financial Report. If material exceptions have been noted, prepare recommendations to prevent the future occurrence of these exceptions. The organization's Treasurer and President are responsible for acting upon the recommendations made by the PTO / Booster Club Review Committee. The Review Report includes reviewer s name, title, and signature. The time period stated in the Review Report, should agree with the time period covered in the Financial Report. Retain the original written PTO / Booster Club Financial Report and the original PTO / Booster Club Review Committee Report on file with the Treasurer of the PTO / booster club. IRS Annually, each PTO / booster club must file an exempt organization information return Form 990-N, 990- EZ, or 990, Return of Organization Exempt from Income Tax. The return is due by the 15 th day of the 5 th month after the close of your tax year. For example, if your tax year ended on June 30, the Form 990 is due Nov. 15. The IRS will automatically revoke your tax-exempt status if you fail to file the appropriate 990 form for three consecutive years. Whether or not your organization has filed for exemption status with the IRS, file the appropriate 990 form as required by exempt organizations. PTOs / booster clubs must use Form 990-N (e-postcard) if: Gross receipts are $50,000 or less. PTOs / booster clubs must use Form 990-EZ if: Gross receipts are more than $50,000 but less than $200,000 AND Total assets are less than $500,000 at year-end /21/2017

42 PTOs / booster clubs must use Form 990 if: Gross receipts are $200,000 or more OR Total assets are $500,000 or more at year-end. For more information regarding documents or regulations your PTO / booster club might need, please go the IRS Stay Exempt. Publications on this site include Form 990, 990-N and 990-EZ Filing Tips. Also, the Life Cycle of a Public Charity includes explanatory information and links to forms an organization may need to file during the five stages of its life. IRS Reinstatement of 501 (c)(3) Tax-Exempt Status A PTO / booster club that does not file the appropriate 990 form for three consecutive years automatically lose their tax-exempt status. A revocation is effective on the original filing due date of the third annual return or notice. If an organization s tax-exempt status is automatically revoked, it is no longer exempt from federal income tax. Therefore, it may be required to file a Corporate Income Tax Return and pay applicable income taxes. A PTO / booster club whose tax-exempt status is revoked is not eligible to receive tax-deductible contributions. Streamlined Retroactive Reinstatement Organizations that were eligible to file Form 990-EZ or 990-N (epostcard) may have their tax-exempt status retroactively reinstated to the date of revocation if they: Have not previously had their tax-exempt status revoked. Complete and submit Form 1023 with the appropriate user fee not later than 15 months after the later of the date of the organization s revocation letter, or the date the organization appeared on the Revocation List on the IRS website. Retroactive Reinstatement Process (Within 15 Months) Organizations that cannot use the Streamlined Retroactive Reinstatement Process (such as those required to file Form 990 or those that were previously auto-revoked) may have their tax-exempt status retroactively reinstated to the date of revocation if they: Complete and submit Form 1023 with the appropriate user fee not later than 15 months after the later of the date of the organization s revocation letter, or the date the organization appeared on the Revocation List on the IRS website. Include a statement establishing that the organization had reasonable cause for its failure to file a required annual return for at least one of the three consecutive years for which it failed to file. Include a statement confirming that it has filed required returns for those three years and for any other taxable years after that period and before the post-mark date of the application for which required returns were due and not filed. For additional information regarding on how to reinstate your organization, please go to the IRS website /21/2017

43 Mailing Address If the mailing address for the PTO / booster club changes, immediately notify the district, the Texas Secretary of State, the Texas Comptroller s Office, and the IRS. To avoid frequent mailing address changes, the IRS and the Texas Comptroller s Office recommend that each PTO / booster club obtain its own post office box (PO Box) or private mailing box (PMB) to be used for official PTO / booster club mail. This address and box keys can be given easily to the new officers at the beginning of the year. The school s address may be used as the PTO s / booster club s official address. The PTO / booster club should be aware that it may not receive mail in a timely manner when the school is closed (i.e., summer vacation and some holidays). Please understand the importance of maintaining a consistent mailing address for the PTO / booster club. First, you will save time since you will not have to update your address each year to the district, the Texas Secretary of State, the Texas Comptroller s Office, the IRS, and your bank as you would if you used someone s home address. Second, PTOs / booster clubs receive several important documents from these agencies throughout the year, and if the address changes frequently, some of these documents could be lost or misplaced. The IRS mails forms and other correspondence to PTOs / booster clubs periodically. If these forms are not completed and returned to the IRS within a specific time period, a PTO / booster club could lose their tax-exempt status and possibly face fines and penalties. The district does not recommend using a home address since officers change frequently. Form 8822-B is available to you for reporting a change of address to the IRS. Members Active members should include those individuals that are parents, guardians, step-parents, or grandparents of a student at the school and that are current in their dues. Active members may also include individuals from a business partner or community organization that is involved in the Adopt a School Program. Only active members should have the ability to vote or hold an office. Other individuals may volunteer for the PTO / booster club, but cannot vote or hold an office. Members should be defined in the PTO s / booster club s bylaws. Membership Dues PTOs / booster clubs may charge dues to their members (the parents and teachers); however, parents and teachers do not have to be members of the PTO / booster club for their child(ren) or students to receive benefits from PTO / booster club activities. Membership dues are separate from the expenses incurred by a student for an activity (i.e., trip expense). Membership dues are associated with the parents being part of the PTO / booster club and are in no way associated with student expenses. The amount is decided and voted upon by the PTO / Booster Club Board. Money Handling Procedures Money refers to cash, checks, money orders, or cashier s checks. The following are suggestions related to handling money to assist in ensuring proper accountability. Receiving Money The person receiving the money while in the presence of the person turning in the money should count all money received (face-to-face verification) /21/2017

44 The person receiving the money should give a receipt to the person delivering the money (both parties should retain their copy of the receipt). Any checks received should be restrictively endorsed immediately. Post-dated checks should not be accepted from any source. Receipts should indicate whether cash, check, money order, or cashier's check was received; date of the receipt; and signature of person receiving the money. If a money order or cashier's check is received, the receipt should indicate the total check amount; brand name of the money order or the issuing bank's name of the cashier's check; and the complete check or money order number. If a copy of the money order or cashier's check is made, the inclusion of this additional information on the receipt is not necessary. Copies or a list of checks, money orders, and cashier's checks received should be made to assist in recovery of money if these items are lost, stolen, or returned due to insufficient funds. Recording and Depositing Money Prior to depositing money, at least two people should count the money. The money should be counted at the school. Do not take any money home. All money should be delivered to the PTO / Booster Club Treasurer to deposit funds daily. When faceto-face verification cannot be done at the time the money is turned in, the money should be put in a sealed tamper-proof bag or a sealed envelope with the name of the person turning in the money, date, and the reason money was collected. The Treasurer should also sign and date the sealed bag or envelope and then secure it in the safe until a face-to-face count can be done. Receipts should be reconciled with all money turned in and deposited. Money received should only be deposited in the PTO s / booster club s account(s). Deposit slips should be retained and reconciled monthly to the account. Disbursing Money Require two signatures on each check. "Blank" checks should never be issued and checks should never be pre-signed. Safeguarding Money Have people that handle money bonded by purchasing fidelity insurance (see Fundraising Guidelines). This protects against embezzlement, but not theft. Do not keep any money in an unlocked drawer, unlocked filing cabinet, vehicle, or other unsecured place. Consider purchasing a safe for the PTO / booster club (see Safe section below). Do not store the records of the money received (i.e., receipts, copies of checks) in the same place as the money. If records and money are stored together and a theft occurs, the record of the money may be taken along with the money. Subsequently, determination and recovery of losses would be more difficult /21/2017

45 Money received and not yet deposited should not be used for purchases, check cashing, loans, advances, reimbursements, or for any other purpose. All unused checks should be kept safe and secure at all times. The sequence of check numbers should be accounted for when reconciling the bank statement to the PTO s / booster club's books. Do not keep money in the school s safe. Safes are available for PTOs to purchase. The school/district is not responsible for any damage or loss of PTO money kept at the school whether it is held in a PTO safe located at the school or not. Issuing checks payable to "Cash" or to the Sponsor should be avoided. The IRS may examine these transactions in more detail than other transactions. If a check must be payable to "Cash" or to the Sponsor, keep detailed documentation of the expense or use of the funds. Paying and Reporting of Workers Any individual including a district employee who is hired by the PTO / booster club must be paid directly by the PTO / booster club and not through the district. There are many technical and legal issues that arise if they are paid by the district. These issues include overtime pay; use of weighted average hourly rates; payment of TRS, taxes, and other benefits; and the advancing of district funds that is prohibited by law. In some situations, PTOs / booster clubs that hold events at district facilities may be charged for staff that must be on hand for the event or to clean up after an event. The pay appropriately is done through the district through the facilities use charges. These employees are doing work for the district and not the PTO / booster club. Remember that federal law requires that a PTO / booster club paying $600 or more to an individual during any calendar year must account for this income through the issuance of a 1099 form. This includes an individual who is paid $600 or more for cultural arts events. The PTO / booster club will need to get social security numbers from all workers. This can be done by having them complete a W-9 form. It is best to have the W-9 completed before paying the worker. Also remember that the PTO / booster club is responsible for its volunteers and workers during PTO / booster club events or activities, including injury or theft. Certain district employees cannot be hired by a PTO / booster club to perform work that includes the handling of money. These positions include Principals, Financial Secretaries, and Principal Secretaries. Project Prom Incentives The Project Prom Booster Clubs may give bonus bucks, coupons, or points as an incentive to get parents to participate in project prom events and earn extra chances for their senior to win a prize or prizes at their after prom event. If the following three (criteria) are met, then these incentives may be used: 1. Every student attending the after prom event receives some incentives for just attending the event. 2. Incentives are used to only have chances to win prizes. 3. Everything at the after prom event is free. The incentives cannot be used towards the purchase of a prom ticket. The incentives can be earned for volunteering for various project prom activities including fundraisers /21/2017

46 The use of incentives is only approved for project prom. The incentives are very similar to individual accounts that are not allowed. However, individual accounts are used normally to offset personal costs for a student for an event or trip. Record Retention PTOs / booster clubs should establish a record file that is passed to the new officers each year. Some items need to be kept indefinitely while other items only need to be kept for a certain length of time. The record file should contain at least the following items on a permanent basis: Permanent Records Internal Records: Certificate of Formation (formerly called Articles of Incorporation ) / Articles of Association Bylaws/Charter/Constitution Minutes from meetings State Records: Sales Tax Permit Application (if applicable) Sales Tax Permit Certificate of Formation of Nonprofit Corporation from the State of Texas (if applicable) State Sales Tax Exemption Notification State Franchise Tax Exemption Notification (if incorporated) Federal Records: Copy of IRS Form SS-4, Application for Employer Identification Number Copy of IRS Form 1023, Application for Recognition of Exemption, with all attachments Copy of IRS Form 8718, User Fee for Exempt Organization Determination Letter Request, and copy of check sent to IRS with this form Determination Letter For non-permanent records, the Texas Comptroller s Office and the IRS have different retention periods as discussed below. In addition, certain circumstances, such as fraud, would allow the retention period to be extended beyond the normal requirement. According to the Texas Comptroller s Office, this office has four (4) years from the date the tax becomes due and payable in which to assess the liability. This statute of limitations may be extended beyond the four (4) years, if an agreement is made in writing between the Texas Comptroller s Office and the PTO / booster club. In cases of fraud, or if the sales tax returns have not been filed, the statute of limitations does not apply and the Texas Comptroller s Office may assess and collect taxes, penalties, and interest at any time /21/2017

47 The statute of limitations does not apply when information contained in the sales tax report contains a gross error and the amount of tax due and payable after the error is corrected is 25% or more than the amount initially reported. In addition, other exceptions to the statute of limitations may apply. According to the IRS, PTOs / booster clubs must keep each annual information return (i.e., Form 990, Form 990-EZ, or 990-N) for 3 years from the date the form is required to be filed or from the date the form is actually filed, whichever is later. However, if fraud is suspected or if returns have not been filed as applicable, the IRS could request information prior to the 3-year period discussed above. In considering the requirements of the Texas Comptroller s Office and the IRS, the record file should contain at least the following items for a minimum of five (5) years (current year and the four (4) previous years). Non-permanent Records Internal Records Financial Reports and Review Reports All financial backup including checkbook and banks records Information related to contributions received by a PTO / Booster Club from individuals or businesses Financial Aid Guidelines State Records Sales Tax Reports Filed Copy of correspondence with the Texas Secretary of State and the Texas Comptroller s Office Federal Records Copy of IRS Forms 990, 990-EZ, or 990-N filed Copy of correspondence with the IRS Before discarding any records, confirm with the Texas Comptroller s Office and the IRS that your organization is in good-standing and that no open items or issues exist related to the time period involving the records that you would like to discard. According to IRS disclosure requirements, if someone requests to view any of your tax applications, forms filed, or tax returns, you must provide complete copies of the material. You may charge a nominal fee for copying, not to exceed the current governmental rate. Safes If your PTO / booster club would like to purchase a safe that would be located at your school, you need to receive your Principal s / Sponsor s approval. The Principal / Sponsor would also need to approve of the safe s location. Some schools may not have space available to allow a safe to be installed /21/2017

48 Features recommended include having a drop feature (top, front, rear) and an electronic lock (key pad). The drop feature allows people to put items in the safe without needing the combination. The electronic lock versus the dial combination would allow the PTO / booster club to change the combination as needed. The dial combination would have to be changed by a safe technician resulting in a fee for the change in combination. A safe may be purchased from any vendor that the PTO / booster club chooses. Some PTOs / booster clubs may want to have the safe bolted to the slab versus having the safe just sitting on the floor. If you would like the safe bolted to the slab, only certain companies are authorized to perform that type of work in our district because of certain qualifications and insurance that the vendor must have. Contact the district s Purchasing Department at (281) to determine which vendors may install safes that are bolted to the slab. In addition, the school may need to submit a building modification form as discussed in Section 5, Expenditures and Purchasing, of these guidelines. In deciding whether to install a safe at a school or if a PTO / booster club already has a safe located at a school, PTOs / booster clubs should consider the following: Any loss of money, records, or other items kept in the safe and the safe, itself, is the sole responsibility of the PTO / booster club. The district, the school, and district personnel are not responsible for the contents of the safe or the safe. The district s insurance does not cover the property of others, such as the PTO / booster club safes and their contents. Therefore, if a PTO / booster club would like to have their safe and contents insured, the PTO / booster club would need to contact an insurance company to purchase this insurance. If no insurance is purchased or available, the PTO / booster club is still solely responsible for any of these losses. If a PTO / booster club does purchase a safe, changing the safe combination as officers change is recommended. The combination to the safe should be known only by a limited number of people. The safe should be the property of the parent group with no campus staff member having the combination to the safe. In addition to the initial cost of a safe, PTOs / booster clubs may incur other expenses including the repair of any damage or malfunction to the safe and service calls for changing the combination, if a dial combination is used. Also, the PTO / booster club would be responsible for the cost of relocating or removing the safe, if a change in location or removal of the safe is needed. Sales Tax Two (2) One-Day, Tax-Free Sales Days PTOs / booster clubs with the sales tax exemption are entitled to two (2) one-day, tax-free sales or auctions per calendar year. One day is counted as 24 consecutive hours and a calendar year is the 12-month period from January through December. Either the date on which the items are delivered by the vendor to the PTO / booster club or the day on which the PTO / booster club delivers the items to its customers may be designated as the one-day tax-free sale day. When a PTO / booster club raises funds by acting as a sales representative / agent for a for-profit retailer (i.e., catalog sale) the PTO / booster club is not responsible for reporting and paying sales tax. The PTO / booster club is not considered to be the seller and cannot use a tax-free sale day for these type of sales. These type of sales are taxable; therefore, sales tax must be collected for items sold unless they are taxexempt by law. For instance, gift wrap is taxable, but cookie dough is tax-exempt by law. The vendor should remit the applicable sales tax to the Texas Comptroller s Office /21/2017

49 Below is a list of some items that are taxable and tax-exempt. Taxable Auctions and Silent Auctions (Unless the item is tax-exempt by law) Calendars and Day Planners Candles Catalog Sales (Unless the item is tax-exempt by law) Clothing Flowers and Plants Gift Wrap Paper, Balloons, etc. Magazines - when sold individually Magazine Subscriptions sold for less than 6 months Pennants Garage Sales School Store Items Spirit Items Stationery Yard Signs Tax-Exempt Advertisement Sales Admissions Discount / Entertainment Cards and Books Food sold as a fundraiser with proceeds to be used by the organization Magazine Subscriptions greater than 6 months Services - Car Wash, Cleaning Yearbooks only if organization keeps publishing rights Reporting Requirements The Texas Comptroller s Office requires that PTOs / booster clubs file at least one sales tax report per calendar year. The frequency of filing the sales tax report is determined by the Texas Comptroller s Office. The amount of anticipated sales tax payments affects the frequency of reporting. The sales tax reports may be due monthly, quarterly, or annually. Some older PTOs / booster clubs might have reports due on a seasonal basis (semi-annually). Since sales tax payments may vary from year to year, the frequency of reporting can also change. The Texas Comptroller s Office will generally communicate changes in filing requirements to the PTOs / booster clubs in writing. In addition, the Texas Comptroller s Office will generally mail the required reporting form and information to organizations that have obtained a Sales Tax Permit. Even if your PTO / Booster Club did not make any sales or all sales were nontaxable, a sales tax report must be filed. For fundraisers in which sales tax must be collected, the PTO / booster club can sell items at a certain price plus sales tax or sales tax may be included in the price. Including sales tax in the price and having the price an even amount such as $10.00 or $10.50 is an easy method to use; however, you need to be careful to avoid paying sales tax on sales tax /21/2017

50 If your sales price included sales tax, you need to do the following calculation to determine your correct amount of sales and sales tax: Total Sales Amount divided by (1.0 + Tax Rate) = Sales Amount Excluding Tax EXAMPLE: Total sales are $1,000 including tax. Tax rate is 8.25% or $1, = $ Taxable Sales $ x.0825 = $76.21 Sales Tax $ $76.21 = $1, Gross Amount Collected Your customer must be informed that you are charging sales tax. A posted sign or a statement on a receipt indicating that tax is included in the sales price may be used. Additional information regarding exemptions may be found on the Texas Comptroller s website. Student Fines and Fees List If a student or parent owes money to a PTO / booster club, the amount owed can be included on the school s Student Fines and Fees List. The money owed should be paid to the PTO / booster club and not to the school. The PTO / booster club should keep the school updated on money received related to the PTO / booster club items included on the Student Fines and Fees List. Suspending a PTO / Booster Club Some PTOs / booster clubs may have insufficient support to maintain an organization or another significant event may occur such as the organization s 501(c)(3) tax-exempt status is revoked by the IRS has revoked. In these instances, suspending the operations of the PTO / booster club may be needed. The suspension may be voted on by organization or the decision may be made by the Principal. The suspension must be noted in the records of the organization. In suspending a PTO / booster club, the organization may become active once parent support is sufficient or once significant events have been rectified. Before suspending the operations of a PTO / booster club, discuss the situation with the Principal / Sponsor. Then contact the Internal Audit Department for further guidance since certain steps must be taken related to the District, the State, and the IRS to properly suspend the organization. Treasurer s Report At each PTO / booster club meeting that includes its general membership, the Treasurer must present a written Treasurer s Report of the money received and expended since the last report. If monthly PTO / booster club meetings are not held, then a Treasurer s report should be prepared monthly. With the Principal s approval, a copy of the Treasurer s Report should be kept at the school s front office for review. Cypress-Fairbanks Independent School District Authorization for Signer on PTO & Booster Club Bank Accounts According to Board Policy GE (Local), Relations with Parents or Parents Organizations: /21/2017

51 A district employee may serve a PTO / booster club as a general member or as a member of its executive board, except for the position of treasurer. A district employee shall not serve in a capacity over the organization s financial affairs, including an authorized signer on the bank account. Appropriate written approval from the Principal or supervisor where the organization is located and the Associate Superintendent for Business, Financial and Technology Services must be received before a District substitute or temporary employee may be a treasurer or authorized signer on the bank account of a PTO / booster club. This approval must be requested and received each school year. The written approval must be kept on file with the District s Internal Auditor. The PTO / Booster Club would like the following district substitute or temporary worker to be an authorized signer on the PTO s / Booster Club s bank account(s): Name (Printed) Position ( i.e., Substitute Teacher, Substitute Paraprofessional, Temporary Worker) Employee s Signature District Location / Department The District substitute or temporary worker would serve the PTO / Booster Club as: (President, Treasurer, or Other Officer) Approval by the Principal or Supervisor where the PTO / Booster Club is located: Name (Printed) Signature Date Approval by the Associate Superintendent for Business, Financial and Technology Services: Name (Printed) Signature Date Return the completed form to the Internal Audit Department at ISC-West /21/2017

52 Type 1 Page 1 of 1 XYZ PTO / BOOSTER CLUB CASH BASIS FINANCIAL REPORT From July 1, 20XX through June 30, 201XX Beginning Cash Balance as of July 1, 20XX $2, INCOME Memberships Dues $ 2, Yearbook Sales $ 5, Wrapping Paper Sales $19, Entertainment Book Sales $19, School Store Sales $ 3, Total Income $51, EXPENSES Yearbooks $ 3, Wrapping Paper $11, Entertainment Books $ 9, Miscellaneous Expenses $ Postage $ Field Trips $ 2, School Store Items $ 2, Field Day $ Printers for Computer Lab $ 1, D.A.R.E. $ 1, th Grade Day $ AR Parties $ 1, School Contribution (Playground Equipment) $ 7, Total Expenses $44, Net Income (Loss) for Current Year $6, Ending Cash Balance as of June 30, 20XX $8, Cash Basis Financial Report prepared by: Printed Name Signature Title / / Date /21/2017

53 Type 2 Page 1 of 2 XYZ PTO / BOOSTER CLUB BALANCE SHEET As of June 30, 20XX ASSETS Chase Checking Account $2, Chase Savings Account $5, Accounts Receivable $3, TOTAL ASSETS $11, LIABILITIES & EQUITY Liabilities Accounts Payable - Catalogs $3, Accounts Payable - Cookie Dough $1, Deferred Membership Income $ Total Liabilities $ 5, Equity Retained Earnings $1, Net Income (Loss) From Current Year $4, Total Equity $ 6, TOTAL LIABILITIES & EQUITY $11, Balance Sheet and Income Statement prepared by: Printed Name Signature Title / / Date /21/2017

54 Type 2 Page 2 of 2 XYZ PTO / BOOSTER CLUB INCOME STATEMENT For the Period of July 1, 20XX through June 30, 201XX INCOME Catalog Sales $9, Cookie Dough Sales $2, School Store Income $ Membership Dues $2, Interest Income $ Total Income $14, EXPENSES Catalog Sale Expense $3, Cookie Dough Expense $1, School Store Expenses $ Field Trips $ Postage $ Supplies $ Contribution to the School $2, Total Expenses $ 9, Net Income (Loss) For Current Year $ 4, /21/2017

55 Option A Page 1 of 1 (proper & correct with no exceptions) XYZ PTO / BOOSTER CLUB REVIEW COMMITTEE REPORT For the Time Period July 1, 20XX through June 30, 20XX The Review Committee members named below have reviewed the attached Financial Report and related financial activity for the time period of July 1, 20XX through June 30, 20XX, in detail. These members agree that the Financial Report and the related financial activity are proper and correct to the best of their knowledge. No exceptions were noted during the review. / / Printed Name Officer Title/Member Signature Date / / Printed Name Officer Title/Member Signature Date / / Printed Name Officer Title/Member Signature Date / / Printed Name Officer Title/Member Signature Date Note: If a reviewer is a non-officer, their title (second column) should be Member /21/2017

56 Option B Page 1 of 1 (proper & correct with immaterial exceptions) XYZ PTO / BOOSTER CLUB REVIEW COMMITTEE REPORT For the Time Period July 1, 20XX through June 30, 20XX The Review Committee members named below have reviewed the attached Financial Report and the related financial activity for the time period of July 1, 20XX through June 30, 20XX, in detail. These members agree that the Financial Report and the related financial activity are proper and correct, except for the following exceptions: Check #12586 cleared the bank for $25.20 instead of $2.52. Check #12688 did not have 2 authorized signatures as required by the PTO / booster club bylaws. The check only contained 1 authorized signature. The Supply Expense account contains six expenses that did not have the related invoices as documentation for the expense. The undocumented expenses totaled $ / / Printed Name Officer Title/Member Signature Date / / Printed Name Officer Title/Member Signature Date / / Printed Name Officer Title/Member Signature Date / / Printed Name Officer Title/Member Signature Date Note: If a reviewer is a non-officer, their title (second column) should be Member /21/2017

57 Option C Page 1 of 2 (not proper or correct due to material exceptions) XYZ PTO / BOOSTER CLUB REVIEW COMMITTEE REPORT For the Time Period July 1, 20XX through June 30, 20XX The Review Committee members named below have reviewed the attached Financial Report and related financial activity for the time period of July 1, 20XX through June 30, 20XX, in detail. These members agree that the Financial Report and the related financial activity are not proper and correct, due to the following material exceptions: No documentation of cost existed for the 100 new books purchased. Checking and savings accounts were not reconciled during the year. Only one authorized signature appeared on all checks written instead of the two required authorized signatures as indicated in the PTO / booster club bylaws. No documentation exists showing sales for the Christmas Cards sold to determine whether the amount recorded in the Financial Report is correct. To prevent the above exceptions from occurring in the future, the following steps should be taken: Documentation of all expenses, such as an invoice, should be received prior to payment of expense. Documentation should be kept with the other PTO / booster club records. All bank accounts should be reconciled on a monthly basis. All checks issued should be signed by at least two authorized officers. For all fundraisers, a record should be kept of the sales and the money deposited /21/2017

58 Option C Page 2 of 2 (not proper or correct due to material exceptions) XYZ PTO / BOOSTER CLUB REVIEW COMMITTEE REPORT For the Time Period July 1, 20XX through June 30, 20XX / / Printed Name Officer Title/Member Signature Date / / Printed Name Officer Title/Member Signature Date / / Printed Name Officer Title/Member Signature Date / / Printed Name Officer Title/Member Signature Date Note: If a reviewer is a non-officer, their title (second column) should be Member /21/2017

59 SECTION 4 FUNDRAISER GUIDELINES

60 Fundraiser Steps The following steps serve as a guide in holding a fundraiser: 1. Read the fundraiser guidelines. 2. Carefully consider the type and number of fundraising activities that will be held during the year. Be sure the type of fundraiser you are considering is an approved fundraiser program. (See Approved Fundraiser Programs on page 4.5 and Non-Approved Fundraiser Activities on page 4.6). Also consider sales tax implications, work involved, and anticipated profit. 3. Determine which vendor to use for the fundraiser. Use only vendors from the Approved Fundraiser Vendor List. (See website If you are holding a catalog fundraiser that includes taxable products, sales tax must be collected and remitted to the vendor. Recommend that the catalog prices include sales tax. The catalogs must indicate that sales tax is included in the price. 4. For the fundraisers to be held during the school year, approval must be requested by September 30, of each school year. To request approval for a fundraiser, the Permission Request of the Fundraising Activity Report must be completed and submitted to the principal or designee. Deadlines for permission to fundraise may vary from campus to campus. 5. For money received from the fundraiser, document the amount received from each student by issuing a receipt or using a log. Money must be turned in daily for deposit to the financial secretary. If orders are being received, require that money be collected at the time orders are placed. If any returned checks are received, product can be held until the money is received for the returned checks. 6. The Operating Report section and the pertinent Attachments, if applicable, of the Fundraising Activity Report should be completed and submitted to the financial secretary no later than one week subsequent to the projected completion date stated on the Permission Request. For PTOs and booster clubs, the Operating Report should be submitted to your Treasurer and not the school. The financial secretary will verify the information on the Operating Report and then provide it to the Principal for review and approval. Reminders Students cannot be required to participate in a fundraiser and cannot be required to raise a certain amount or sell a certain number of items. All money raised must be used to benefit all students of the group or school /21/2017

61 Fundraiser Guidelines The Cypress-Fairbanks Independent School District (CFISD) recognizes the importance and value of a positive fundraiser program. In order to provide fundraiser assistance and protection to district campuses or organizations, the following guidelines are intended to address a few of the issues the district faces. As your campus or organization prepares to conduct a fundraiser, please use these guidelines to assist in planning. General Guidelines The school principal or designee shall approve all fundraiser programs. In determining whether to approve a fundraiser, consider the type of fundraisers to be held and when they are scheduled. Each campus/pto/booster club/organization is allowed to have two major fundraisers per school year. A major fundraiser is one in which a product is actively marketed and sold over a set period of time with the goal of raising a large amount of money. A major fundraiser usually targets sales in the school s community. There is no limit on the number of minor fundraisers a campus/pto/booster club/organization may participate in. A minor fundraiser is an attempt to generate a small but steady revenue stream over a long period of time. They can also be short term sales that target the student population at school. Carnivals are considered minor fundraisers. Examples of minor fundraisers are pizza/school nights, Kroger card, spirit cart items, Valentine s Day flowers, etc. For High schools, careful consideration should be given to limiting the number of major fundraising activities involving students. All such activities require the approval of the designated sponsor and the principal. For the fundraisers to be held during the school year, approval must be requested by September 30 of each school year. (Deadlines may vary for each campus. Please check with the principal.) To request approval for a fundraiser, the Permission Request of the Fundraising Activity Report must be completed and submitted to the principal. If the type of fundraiser to be held changes or if an additional fundraiser is needed, a revised Permission Request must be submitted to the Principal for approval at least thirty days prior to the fundraiser. In addition, Revised must be stated in bold lettering on the form and the reason for the change or the need for the additional fundraiser must be provided. The Operating Report of the Fundraising Activity Report must be completed within one week of the projected end date of the fundraiser and submitted to the financial secretary for verification. For PTOs and booster clubs, the Operating Report should be submitted to their Treasurer and not the school. (See attached Fundraising Activity Report.) A campus/organization should only use those fundraiser vendors on the Approved Fundraiser Vendor List. Exceptions to this are Food and Rental equipment vendors used in carnivals. (See website No fundraiser program may require/promote students going door to door /21/2017

62 Students are allowed to receive approved incentives (prizes) for participating in a fundraiser program. It is the responsibility of the principal or designee to monitor and approve any incentive program to ensure the appropriateness for CFISD students. Students are not allowed to receive any type of food as an incentive prize during the school day. Students may not receive financial incentives that are more than $20.00 in the form of cash/currency. Any financial incentive greater than $20.00 must be presented to the student in the form of a check, gift-card or other forms of non-cash/currency. Fundraiser incentives that include the transporting of students and staff must follow these guidelines: Fundraiser incentives involving the transportation of students are not allowed for elementary schools. Elementary schools may have after school fundraiser parties on or off campus as long as all transportation is provided by the parent. Any off campus fundraiser rewards or incentive parties must be attended by at least one school representative. Elementary schools are not required to have a representative present for school night or fundraiser night when the student must pay a charge to attend. Middle schools/high schools must submit a field trip request to the Assistant Superintendent for Secondary Administration before scheduling an off campus fundraiser incentive trip. Middle schools/high schools may not spend more than two hours away from instruction. (Please consider the end of day to maximize instructional time.) The fundraiser vendor must submit the transportation vendor s insurance certificate. The transportation vendor must meet all CFISD insurance requirements. (See attached Vendor Contracts and Insurance Requirements in Section 5.) Funds raised by all students of the campus/pto/booster clubs/organizations should be combined towards the particular event or expenditures for which the funds were raised. These funds should then be used to benefit all students of the campus/organization. For instance, if funds were raised to purchase playground equipment, all students normally allowed access to the equipment would be allowed access whether they participated in the fundraiser or not. (See the attached Fundraising Restrictions and Example of the Use of Funds Raised on page 4.18.) Students cannot be required to participate in a fundraiser program. Students cannot be required to sell a certain amount or make a donation in lieu of fundraising. In addition, a student cannot be punished in any way for not participating in a fundraiser program. Not qualifying to attend a fundraiser party is not considered punishment. The school principal or designee should keep a calendar and log of all fundraisers to be held by their campus clubs and departments and also by their booster clubs. The financial secretary should also have access to the calendar and log to know when a fundraiser is being held and when the Operating Report of the Fundraising Activity Report is due. (See the attached Fundraiser Log on page 4.17.) 4.3 8/21/2017

63 The calendar and log of fundraisers will help to prevent too many fundraisers from being held at the same time and will help prevent various groups from holding the same or similar types of fundraisers within a short time period. By preventing these situations, the fundraiser customers may be more willing to participate. The calendar and log will also assist the school and the financial secretary in knowing when money is being collected. Approved Fundraiser Vendors The district maintains a list of approved vendors to assist schools in finding reputable businesses. To ensure that the vendor your organization chooses is approved or to obtain a copy of the list of approved vendors, contact Kristi Giron, the Director of General Administration ( ) or visit the Fundraising webpage at under Community Involvement. If you wish to use a vendor not on the current approved list, please contact the Director of General Administration for the appropriate approval process or visit the home page for this department at Do not use a fundraiser vendor if the vendor is not approved to offer their services/program in CFISD. The PTO Presidents Council sponsors an annual Vendor Fair in February that is open to all districtapproved vendors. It provides an excellent opportunity for fundraiser volunteers to meet and interview potential vendors. Please contact the Director of General Administration at for more details. Approved Fundraiser Programs (Any service, product, activity, or program found on the approved fundraiser list.) For any entry fees, such as for a carnival, pre-numbered entry tickets must be used. A ticket should be issued when the entry fee is paid. Then half of the ticket should be given to another person prior to entry into the event. Track the beginning and ending ticket numbers issued. The number of tickets issued times the ticket price should agree to the amount of money received. If entry fees vary in price, use a different colored ticket for each different price. School Sponsored: Request certificates of insurance from your vendors as evidence they have met the district s insurance requirements. School principals are the only authorized district personnel able to contract in the district s name with vendors on the campus level. Carefully read the entire service and/or equipment contract you are being asked to sign. If it contains an Indemnification Clause, Hold Harmless Clause, or a Waiver of Liability Clause you are prohibited from signing it as it is. School districts are political subdivisions of the state and are not answerable for the negligence of their trustees, agents, or employees under the doctrine of governmental immunity. You cannot accept liability in the name of the district; nor can you waive the liability of others (your vendors) against third party claims. Write in See Attachment on the contract and add the enclosed Contract and Lease Attachment to the contract. Have the contractor acknowledge the attachment by signing it. PTOs/booster clubs: Your group is a separate entity from the school district. PTOs ARE NOT protected from liability by governmental immunity. Carefully read the entire contract and/or service agreement you are being asked to sign by your vendor. Unless your group is covered by its own general liability insurance policy (either an annual policy or one-day event policy) by signing a contract that includes an Indemnification Clause, Hold Harmless Clause, or a Waiver of Liability Clause, you are accepting, in the name of your group and its officers, the risk for any and all losses (property damage, bodily injury, personal injury, etc.) incurred or resulting from the event you are contracting for /21/2017

64 A. Carnivals (Includes food vendors and events with rental equipment such as moonwalks, dunking booths, rock walls, etc.) Any vendor coming onto school property to run or set up equipment must provide proof of liability insurance. Please contact the Insurance Department at to assist you with insurance policies. A volunteer and/or school staff member may operate non-mechanical equipment (dunking booth, moonwalk, etc.). Mechanical rides are not allowed on district property. Rock walls must be run by a trained vendor employee. A volunteer or school staff member shall collect any fees charged to participate in a carnival event. A volunteer or school staff member shall collect any fees charged to purchase food items. Vendors will not be allowed to buy space and sell crafts on school property. A petting zoo is only allowed at the Exhibit Center. Animal rides are not allowed on district property. B. Garage Sales, Car Washes, Etc. Volunteers, students and/or staff members must conduct all sales. Garage sale items must be donated. Written permission must be received from property/land owner for a CFISD campus/organization to conduct a car wash. C. Candy/Food Sales While candy orders may be taken during the school day, candy items may not be delivered and/or consumed until 30 minutes after the last class period has ended. Requests for additional air conditioning to store candy may result in charges to the school for additional electrical cost. Cookie dough, Market Day and deliveries for students to take home to sell may be delivered during the school day since these items are not intended to be opened and eaten at school. Check the attached Overview of the USDA Smart Snacks Rule in Section 6. D. Catered Dinners The principal must approve all catered meals. Volunteers, students and/or staff must sell the tickets. The campus and/or organization shall collect all revenues generated. The catering vendor shall deliver and serve the meal. Catered meals may not begin until 30 minutes after the last class period has ended. E. Craft Shows All craft shows must be held at the CFISD Exhibit Center or the Berry Center. Please contact the Manager of Facilities Use ( ) to make arrangements for using the Exhibit Center or the General Manager of the Berry Center ( ) for using the Berry Center. Craft shows must be organized and supervised by parent-support organizations, staff sponsors and/or staff. All organizations must pay for any custodial overtime, after-hours utilities and required insurance. Non-approved Fundraiser Activities Gambling games, such as bingo, are not allowed unless the organization has met all legal requirements and have obtained a license through the Texas Lottery Commission /21/2017

65 Any service, product, activity or program not found on the Approved Fundraiser Vendors List. Any service, product, activity or program deemed inappropriate by the CFISD administration. Raffles. (The definition of a raffle is the award of one or more prizes by chance at a single occasion among a single pool or group of persons who have paid or promised a thing of value for a ticket that represents a chance to win a prize.) Schools are not allowed, by State law, to hold raffles. A nonprofit organization that has existed for at least three preceding years and is exempt from federal income tax under Section 501(c), does not distribute any of its income to its members, officers or governing body; does not devote a substantial part of its activities to attempting to influence legislation; and does not participate in any political campaign, may hold a raffle. Middle schools do not have any 501(c) organizations that would qualify to hold a raffle. Only members of the organization or persons authorized by the organization may sell tickets. An organization may offer any prize except money. The value of the prize may not exceed $50,000, unless the prize is a dwelling, in which case the value may not exceed $250,000. There is a no value limit on prizes donated to the organization. Texas lottery tickets may be purchased and offered as prizes, even though the tickets payoff may exceed $50,000. The organization must have each raffle prize in its possession or ownership, or must post a bond for the full amount of the value of the prize with the county clerk. A qualified organization (i.e. booster club, PTO) may hold only two raffles per calendar year and only one raffle at a time. Raffle tickets may not be advertised state wide or through paid advertisements. Each raffle ticket must state the name of the organization conducting the raffle, the address of the organization or of a named officer of the organization, the ticket price, a general description of each prize having a value of more than $10, and the date on which the raffle prize(s) will be awarded. Proceeds from ticket sales must be used only for the charitable purpose of the qualified organization. Raffle tickets may not be sold on any CFISD school campus. Raffle tickets may not be sold at Pridgeon or Berry Stadiums. Raffle tickets may be sold at the Berry Center or the Exhibit Center. Raffles may be advertised on any school site with the permission of that buildings administration. Food Item Requirements Harris County (for all schools except Bane, Dean, and Holbrook): Non-profit organizations are not required to obtain a permit to prepare, handle and deliver food. However, all guidelines must be followed, including access to facilities for washing utensils/hands. Contact: Harris County Health Department City of Houston (for Bane, Dean, and Holbrook): Permits are required when selling foods that need to be prepared or cooked at fundraiser events (example: hot dogs, hamburgers). A permit is not required to sell non-cooked food or cooked food that has been purchased from an outside vendor or school cafeteria (example: pizza). Contact: City of Houston Health Department For any event requiring the use of a kitchen, a food service employee must be paid to supervise the opening and use of area equipment. (Contact Food Service at ) 4.6 8/21/2017

66 Miscellaneous Issues Law prohibits possession and/or consumption of alcoholic beverages by any individual(s) on school district property. Alcohol may not be consumed off school property while students are present at any booster club activity. Law prohibits smoking, possession, and/or use of any tobacco product by an individual(s) on school district property. Sales tax. Each campus and organization (any bona fide chapter within the district of the school) is entitled to two one-day, tax-free sales days per calendar year. Student groups are those recognized by the school and organized by electing officers, holding meetings and conducting business. Please refer to the enclosed Tax Policy News published by the Texas Comptroller s Office for additional information on tax free days. Please make sure your fundraiser qualifies based on the information provided in this report. For sales tax questions, please contact the Texas Comptroller s Office at Parent organizations must have an exemption from sales, use and franchise tax from the Texas State Comptroller s Office to be entitled to the two one-day, tax-free sales days per calendar year /21/2017

67 Facility Use Fees for Fundraisers When a facility is used for a fundraiser on a non-school day or after regular school hours, you will be invoiced for any costs incurred as a result of the event including custodial overtime. Custodial overtime is $20 per hour per custodian, with a 4-hour minimum. The District is very interested in your efforts to raise funds for our children, and we are available to support you in any way possible. Please feel free to contact the individuals below if you have questions or concerns. Kristi Giron, Director of General Administration, Jean Roensch, Facilities Use Manager, /21/2017

68 Instructions Permission Request 1. The Permission Request (2 pages) must be completed and submitted to the principal or designee for approval by September 30 of each school year for the fundraisers to be held. The Principal will return the form to the individual requesting permission. 2. The Operating Report (2 pages) shall be prepared promptly upon completion of the fundraising activity. A copy of the form should be retained by the organization sponsor and the original should be turned into the financial secretary (secretary that handles the school s finances) no later than one week subsequent to the projected end date of the fundraiser as stated on the Permission Request. If a PTO or booster club is holding the fundraiser, the Operating Report should be provided to the organization s Treasurer and not the school. The organization is responsible for handling the money received and the related expenditures as well as keeping the fundraiser records as required for record retention. Campus Date / / Organization Sponsor Specific Purpose(s) for which the net proceeds are to be used: Activity Fund Account(s) that will receive the net proceeds (Budget Unit # & Account #): Budget Unit # Account # Budget Unit # Account # Description of Fundraiser Is vendor on the approved vendor list? Vendor Name Yes No Vendor Representative Vendor Address Vendor Phone # Quoted Profit % from Vendor Type of Fundraiser Catalog Sale Single Item Sale Concessions Other Describe: / / Date 4.9 8/21/2017

69 Permission Request Fundraiser Start Date / / Fundraiser End Date Due Date for Operation Report (1 Week after the Fundraiser End Date) Major Fundraiser Minor Fundraiser This is the 1 st 2 nd 3 rd major fundraising activity for the school year that I have requested for this group. This is the 1 st 2 nd 3 rd 4 th 5 th 6 th minor fundraising activity for the school year that I have requested for this group. Are items being sold taxable? Yes No If yes, is this a one-day, tax-free sales day? Yes No Each organization or campus is allowed to two one-day, tax-free sales days per calendar year (January thru December). If yes, 1 st 2 nd Expected Profit Estimated Revenue Less: Estimated Cost of Fundraiser Equals: Estimated Profit (Net Proceeds) $ $ $ With this Permission Request, submit details of the fundraiser to be held such as the brochure, flyer, t-shirt or product design, and any other pertinent information. As the sponsor of this fundraiser, I agree to conduct this fundraiser in compliance with district policies. I understand that I am personally responsible for all funds collected and for keeping accurate records. I will exercise strict control over all products in my possession. I will provide all money received along with the name and amount turned in by student [parent] to the financial secretary [treasurer] daily for deposit. I will have all expenditures paid through the financial secretary [treasurer]. I am responsible for completing the Operating Report for this fundraiser and will turn in all records to the financial secretary [treasurer] within one week of the projected end date of the fundraiser. Sponsor/Person Requesting Permission Date APPROVED DENIED Date: /21/2017

70 Operating Report Organization Fundraiser Total Collections from Fundraiser: Date Receipt # Description Amount $ Per Attached List (if needed) Total Collections $ Total Disbursements for Merchandise, Advertising, Prizes, etc. for Fundraiser: Date PO# Payee/Vendor Amount $ Per Attached List (if needed) Total Disbursements $ Profit (Net Proceeds) from Fundraiser: Total Collections Total Disbursements $ / / Sponsor/Person Responsible for Fundraiser Date /21/2017

71 Operating Report Complete one (1) of the following attachments, if applicable, based on the type of fundraiser held: Attachment A for Catalog / Product Sales, Attachment B for Ticket Events with Entry or Participation Fees, or Attachment C for Concessions. Operating Report Completed by: Sponsor/Person Responsible for Fundraiser Date Submit the Operating Report to the financial secretary no later than one week subsequent to the projected end date of the fundraiser. For PTOs and booster clubs, submit the Operating Report to your Treasurer. Verification by Financial Secretary [Treasurer]: To verify the Operating Report, Review the pertinent attachment depending on the type of fundraiser held. Determine if products and amount collected have been accounted for properly. Agree collections on the operating report to the deposits made. Agree the disbursements for the fundraiser to the vendor invoice(s) and purchase orders. Any discrepancies noted? Yes No If yes, describe any discrepancy noted. Attach a written response from the Sponsor/Person responsible for the fundraiser concerning any discrepancy noted. Response should be signed and dated by the person providing it. Financial Secretary [Treasurer] Date Reviewed and Approved by: / / Principal or Designee [President] Date /21/2017

72 Catalog / Product Sales Inventory Reconciliation (For wrapping paper, candy sales, gift items, t-shirts, Gold C Books, or Entertainment Books) Items Received from Vendor Description Less: Items Returned to Vendor (Attach Credit Statements) Less: Items Distributed, But Money not Received (Complete Section for Students that Owe Money) Less: Items Remaining on Hand Items Sold / Total Sales of Products # of Items Total Sales Amount (# of Items x Sales Price) For sales involving multiple products, you may want to do the above analysis for each product separately, utilize the overall tally sheet for the orders, or complete only the Total Sales Amount column. For items remaining on hand, where are the items stored and what is the expected disposition of these items? Total Reconciliation Do the Total Sales of Products agree to the Total Collections on the Operating Report? Yes No If No, the amount of difference is $ Explain the difference below. Students that Owe Money from the Fundraiser Student ID # Student Name Amount Disposition Per Attached List (if needed) Total Amount Owed by Students Students that owe money for a fundraiser should have the amount owed added to the Fines and Fees List for the school. Sponsor/Person Responsible for Fundraiser Date /21/2017

73 Ticket Events with Entry or Participation Fees Ticket Reconciliation (For Athletic, Band, or Drama Events with Entry or Participation Fees) Based on the beginning and ending ticket numbers and less any complimentary tickets, determine the number of tickets sold. Description Beginning Ticket # Ending Ticket # Less: # of Comp. Tickets # of Tickets Sold Sales Price Total Sales Ticket Type 1 Ticket Type 2 Ticket Type 3 Ticket Type 4 Total Sales from Tickets If any complimentary tickets are given, attach list of people that received the complimentary tickets. Ticket stubs must be kept as part of the fundraiser records. Total Reconciliation Do the Total Sales from Tickets agree to the Total Collections on the Operating Report? Yes No If No, the amount of difference is $ Explain the difference below. Students that Owe Money from the Fundraiser Student ID # Student Name Amount Disposition Per Attached List (if needed) Total Amount Owed by Students Students that owe money for a fundraiser should have the amount owed added to the Fines and Fees List for the school. / / Sponsor/Person Responsible for Fundraiser Date /21/2017

74 Concessions Concessions Reconciliation Based on the beginning and ending inventory of each type of product and less any complimentary products given, determine the number of products sold. Type of Inventory Beginning Inventory Ending Inventory Less: Comp. Products # of Products Sold Sales Price Total Sales Product 1 Product 2 Product 3 Product 4 Product 5 Product 6 Product 7 Product 8 Product 9 Product 10 Per Attached List (if needed) Total Sales If any complimentary products are given such as for workers, attach a sheet listing the people that received the products and the products that they received. Total Reconciliation Do the Total Sales from Concessions agree to the Total Collections on the Operating Report? Yes No If No, the amount of difference is $ Explain the difference below. Sponsor/Person Responsible for Fundraiser Date /21/2017

75 CYPRESS-FAIRBANKS INDEPENDENT SCHOOL DISTRICT CASH RECEIPT SHEET School Name Organization or Account Name Purpose for Collecting Money Student Signature Date Amount Collector's Student Name or Initials Paid Paid Cash Check Initials 20 Financial Secretary Use: Date Received: Amount Received: $ Receipt Number: Financial Secretary Signature Total $ Taxable: Yes No Signature of Person Turning in Money /21/2017

76 Cypress-Fairbanks Independent School District Campus - School Fundraiser Log for the 20XX-20XX School Year Permission Request Date Start Date Fundraiser End Date Organization Sponsor Type of Fundraiser Budget Unit # Account # Estimated Profit Actual Profit Due Date Operating Report Received Date Verified Date Reviewed & Approved by Principal Page 1 of /21/2017

77 Fundraising Restrictions and Example of the Use of Funds Raised Cypress-Fairbanks ISD is considered a charitable organization. The following are Internal Revenue Service (IRS) restrictions placed on tax-exempt organizations (i.e., district, PTOs, and booster clubs) that must be followed: As a tax-exempt organization, the district must benefit a campus/organization as a whole instead of benefiting individual members of a campus/organization. All members of the campus/organization are to be treated equally and receive the same opportunity to benefit from a fundraiser. Therefore, one student cannot receive a greater benefit than another unless the criteria for financial need discussed below is met. In some instances, individuals may not be able to afford to pay the amount owed to participate in a particular event. The IRS has indicated that a campus/organization may establish criteria that could be used to determine if an individual is in financial need. If the criteria are met, the campus/organization could provide the necessary funds to allow the individual to participate. One criterion could be whether the student is on the free/reduced lunch program. The criteria should be established in writing prior to a particular situation arising. In addition, the criteria should be used consistently for all individuals, and the criteria should not change every year. As a tax-exempt organization, the district campuses/organizations cannot use individual accounts. "Individual accounts" are used by a campus/organization to record a credit to an individual (participant) based on revenues raised. The campus/organization would offset that individual's expenses with the amount credited to that individual from the revenues raised. As a tax-exempt organization, the district campuses/organizations cannot require a person to participate in fundraising activities. A campus/organization cannot require its members or the students to participate in a fundraiser. Furthermore, students who do not participate in fundraising activities would receive the same opportunity to benefit as those students who participated. As a tax-exempt organization, the district campuses/organizations cannot require that a certain amount be raised or sold per person. For example, a campus/organization cannot require that each member or student sell $20 worth of candy or sell 10 candy bars in a fundraiser. The following is an example of the above concepts: Science Club is having a fundraiser to help reduce the cost of a special field trip. The cost of the trip is $5,000 for 100 people. Therefore, each person s cost for the trip before the fundraiser is $50. Of the 100 people participating in the trip, only 50 people participate in the fundraiser and raise a total of $1,500. The $1,500 must be split equally among the 100 people going on the trip; even though, only 50 people participated in the fundraiser. Therefore, each person receives a benefit of $15 ($1,500 / 100). Now, each person s cost for the trip is $35 ($50 - $15) /21/2017

78 SECTION 5 VENDOR CONTRACTS AND INSURANCE REQUIREMENTS

79 Contact List Insurance Mark Flores Director of Payroll and Insurance Jaime Decantillon Risk Manager /21/2017

80 SIGNING VENDOR CONTRACTS FOR SERVICES OR GOODS (Fundraisers) School Sponsored: Request certificates of insurance from your vendors as evidence they have met the district s insurance requirements. School principals are the only authorized district personnel able to contract in the district s name with vendors on the campus level. Carefully read the entire service and/or equipment contract you are being asked to sign. If it contains an Indemnification Clause, Hold Harmless Clause, or a Waiver of Liability Clause you are prohibited from signing it as it is. School districts are political subdivisions of the state and are not answerable for the negligence of their trustees, agents, or employees under the doctrine of governmental immunity. You cannot accept liability in the name of the district; nor can you waive the liability of others (your vendors) against third party claims. Write-in See Attachment on the contract and add the following Attachment to the contract. Have the contractor acknowledge the attachment by signing it. PTOs, Booster Clubs, Other Organized Parent Groups Sponsoring: Your group is a separate entity from the school district. PTOs, booster clubs, Project Prom parent groups, etc. are not protected from liability by governmental immunity. Carefully read the entire contract and/or service agreement you are being asked to sign by your vendor. Unless your group is covered by its own general liability insurance policy (either an annual policy or one-day event policy) by signing a contract that includes an Indemnification Clause, Hold Harmless Clause, or a Waiver of Liability Clause, you are accepting, in the name of your group and its officers, the risk for any and all losses (property damage, bodily injury, personal injury, etc.) incurred or resulting from the event you are contracting for. The district and/or a third party claimant can hold your group financially responsible for losses to property and persons. SPECIAL NOTE: No district employee or fundraising organizer should ever sign any agreement that releases the contractor or vendor of their legal responsibilities, unless the fundraising organization has purchased their own insurance for the event to cover ALL potential risks. No school district employee can legally waive the district's rights to recovery, nor agree to hold a third party harmless. Attached are the approved insurance requirements for contractors/vendors of the district. PTOs and booster clubs are advised to secure the same evidence of insurance from all their contractors or vendors, or to purchase their own 1 Day Special Event Liability insurance policy covering all potential losses. NEW: The Texas Department of Insurance requires that all amusement rides (including all continuous air flow inflatable rides/devices and various simulators) undergo an annual safety inspection. The amusement ride owner/operator is required to provide a photocopy of the current inspection certificate to any sponsor or other person responsible for amusement rides publicly used. You are advised to make sure that each piece of equipment that you are renting has a current inspection certificate (TDI form AR100). You can also go online to: to verify a piece s current certificate. Sprinkler systems and underground utilities can be a problem if an event is placing equipment on campus grounds or having anyone (vendors) drive over unpaved grounds areas. Most vendor contracts specifically state that the renter is responsible for marking sprinkler systems and underground utilities. Please call the Maintenance Department early for them to mark the areas for you. It is your responsibility to secure current Certificates of Insurance and Amusement Ride Inspection Certificates from your selected vendors as evidence that policies and inspections are up to date. Because a vendor has done business with CFISD in the past is not evidence that their insurance has ever been approved by the district. The following vendors have submitted evidence in the past that did meet the district s requirements. This vendor list may be a good starting point in your search for a responsible vendor. Affordable Moonwalks Etc., LLC Contact: Greg Carlson or Dean Reese (281) Houston Party Rentals, Inc. Contact: Bob Tickle (281) Jumping Fiesta Rentals Contact: Nancy or Emilio (832) /21/2017

81 Date: CONTRACT/LEASE ATTACHMENT CFISD Personnel: Insurance regulations have recently made clear that the district s insurance requirements cannot be secured without a written contract between the district and contractors and service vendors. You are advised to add this Attachment and the accompanying Insurance Requirements to any contract or equipment rental agreement. Have the contractor acknowledge the attachment by signing it. Added as part of the contract between: Cypress-Fairbanks Independent School District for: Campus Name and Vendor/Contractor Business Name For the following event: Pursuant to the laws of Texas, public school districts have no authority to indemnify and hold harmless from any claims made by the general public or any third party claimant. The Indemnification clause in the attached contract/equipment lease agreement (if applicable) is unenforceable under Texas law. Cypress-Fairbanks Independent School District (and the organization sponsoring the event) will be named as Additional Insureds by endorsement to the contractor s Commercial General Liability policy. The Contractor/Vendor agrees to provide evidence of insurance that meet or exceed the attached CFISD Insurance Requirements. The contractor/vendor agrees to assume all liability of the contract or lease agreement and holds the school district harmless. Cypress-Fairbanks I.S.D. Authorized Employee Date Authorized Signature of PTO/Booster Club Event Sponsor Date Vendor/Contractor Signature Date 5.3 8/21/2017

82 Insurance Requirements for Equipment Vendors for Fundraisers, Festivals, & Parties GENERAL INFORMATION The district shall require that the following insurance requirements be met: 1. No work will be commenced until all requirements of this section have been approved by the district in writing. 2. The district shall be furnished with certificates of insurance evidencing all policies and endorsements required by this section 3. The insurance will contain a provision that at least thirty (30) days prior written notice shall be given to the district in the event of cancellation, material change or non-renewal. 4. Insurance will be underwritten by a company rated not less than B+VII in the latest published Best s Key Rating Guide. 5. There will be a hold harmless agreement in which the contractor assumes liability on the contract and holds the school district harmless. 6. The contractor will purchase and maintain in force the following kinds of insurance for operations under the lease agreement or contract as specified in each section. 7. No deletions/exclusions from standard coverage form are allowed without the written consent of Cypress-Fairbanks Independent School District. 8. NEW: The contractor/vendor will be in compliance with the Texas Department of Insurance Amusement Ride Regulations, when applicable. (See attached.) CASUALTY INSURANCE 1. Workers Compensation as statutory provisions require. NOTE: If the equipment vendor is unable to provide evidence of Workers Compensation policy coverage the vendor is limited to delivery, setup, and take down of the equipment and IS NOT PERMITTED to remain on site for the purpose of supervising or operating the equipment. 2. Commercial General Liability (Occurrence basis only) The district and the renter (PTO, booster club, or other parent group) will be named as additional insureds by endorsement on the contractor s policy as to the subject job. Bodily Injury and Property Damage Each Occurrence $300,000 General $600,000 Products/Completed Operations Aggregate $600,000 Personal and Advertising Injury Occurrence $300,000 Fire Damage, Legal Liability Any one fire $50,000 Medical Expenses Any one person $5,000 AUTOMOBILE LIABILITY INSURANCE 1. Business (Commercial) Automobile Liability Insurance Coverage for all Owned, Non-owned, and Hired vehicles: Bodily Injury Each Person $100,000 Each Accident $300,000 Property Damage Each Occurrence $100,000 UMBRELLA LIABILITY INSURANCE (EXCESS) $1,000, CFISD will be named as an additional insured on the contractor s policy as to the subject job 2. This policy will provide coverage over the Workers compensation, Commercial General Liability, and Business Automobile Liability policies /21/2017

83 TEXAS DEPARTMENT OF INSURANCE Amusement Ride Regulations The Texas Department of Insurance (TDI) is the state s administrator for the Amusement Ride Safety Inspection and Insurance Act, Occupations Code Chapter To legally operate in Texas, an amusement ride owner/operator must file with TDI an insurance policy with certain minimum limits for bodily injury for persons using the ride and an annual amusement ride safety inspection certificate. The inspection is performed by an approved inspector of the insurance company. Rides meeting the requirements will be issued a TDI Amusement Ride Compliance Sticker (similar to an automobile safety inspection sticker), which will indicate the expiration date of the inspection certificate. The sticker should be affixed to a major component of each ride in a location visible to the ride participants. The amusement ride owner/operator is required to provide a photocopy of the inspection certificate and the required insurance policy to any sponsor, lessor, landowner or other person responsible for amusement rides publicly used. An amusement ride inspection certificate indicates the ride has met the standards required by the manufacturer, insurer, or the American Society for Testing and Materials (ASTM). Recognition by the Department that the amusement ride has satisfied these standards is not an endorsement by the Department or a statement regarding the safe operation of the amusement ride. What s considered as an amusement ride? Most mobile carnival rides Most theme park rides Most water park rides and devices following: concession Amusement rides also include, but are not limited to the following: go-karts, rock climbing walls, bungee jumps, mechanical bulls, trackless trains, continuous air flow inflatable rides/devices and various simulators. What s not considered as an amusement ride? Non-mechanized playground equipment Physical fitness/training devices or obstacle/ropes course equipment Public conveyance devices Coin operated rides Small rides or devices that do not require the supervision or service of an operator Live animal rides Motor Sports What should the public look for at a carnival or amusement ride? "Look for the Sticker" - A compliance sticker should be attached to each ride. For a List of Current Stickers go to: "Look for the Sign" - A sign is required to inform the public how to report (on-site) an amusement ride that appears to be unsafe or to report an amusement ride operator that appears to be violating the law. The sign is to be posted at the principal entrance or at the ticket booths. Look for posted height/weight restrictions for riders on certain rides. The Texas Department of Insurance also has a list of Injury Reports that are filed quarterly by the amusement ride owner/operator at: A municipal, county or state law enforcement official may enter and inspect without notice at any time to ensure public safety and may immediately prohibit operation of an amusement ride for non-compliance and/or unsafe operation. If requested by law enforcement an amusement ride owner/operator must make available the following documents for each ride: 1. A copy of the insurance policy 2. A copy of the inspection certificate 3. A daily self-inspection log (mobile rides only) An offense for non-compliance is a Class B misdemeanor /21/2017

84 SECTION 6 PURCHASING GUIDELINES

85 Contact List Purchasing Severin Castro Director of Purchasing Jennifer Chiu Assistant Director of Purchasing Nancy Dunn Buyer Computer Equipment Jay Johnson Director of Technology Support Services Kim Bowlin Hardware Planning Coordinator /21/2017

86 Purchasing Guidelines Section A: Fundraiser Vendor Information Guidelines for Selecting a Vendor a. Request every vendor to show proof of a Vendor Authorization Pass. This ensures that the vendor has completed an application to do business in Cypress-Fairbanks ISD and produced documentation of the fundraising program. If the vendor does not have this document, refer them to Kristi Giron, Director for General Administration, at b. Request written documentation of commissions offered. c. Request written documentation detailing program and delivery timeline prior to the start of sale. d. Be cautious if dealing with a new vendor. e. Ask for references of previous successful sales and call these references. f. Do not send money prior to receipt of product. g. Be cautious about selling food items (expiration dates, refrigeration, etc.) h. If a program sounds too good to be true then it probably is! 6.2 8/21/2017

87 Section B: Spending Fundraiser Money (Severin Castro, Purchasing) All projects and purchases must be approved by the school principal. District policy requires that all capital expenditures be centrally processed through the Purchasing Department. Items such as computer equipment, audio visual equipment and playground equipment are wonderful opportunities to enhance the instructional setting. It is ultimately the district's responsibility to maintain the equipment beyond the original purchase and it is in the district's best interest to purchase equipment that is compatible with the district's current standards and specifications. Any capital/fixed assets and equipment that will be used for a school or a school program must be purchased through the district and become the property of the district. In purchasing these capital/fixed assets and equipment, the PTO or booster club must donate the money to the school or school program. Then the purchase must be approved by the principal and/or the appropriate departments and made as required by state law and district policies. In consultation with the superintendent or designee, the principal shall determine the type or brand of equipment to buy to ensure compatibility with current district equipment and with current facility specifications such as electrical, plumbing, data lines and the like. The approval and cost of any facility modifications needed should be considered before approving the equipment purchase. Fixed assets and equipment costing $5,000 or more are considered capital assets and must be capitalized for district financial statement purposes. Assets and equipment costing $1,000-$4,999 and all technology equipment, music equipment, furniture, vehicles, trailers, mowers, instruments, cameras and camcorders must be tracked and tagged by the district. Any additions, improvements or modifications made to district buildings or property with money donated to the school or school program must be approved by the principal and the district facilities and construction department. These additions, improvements or modifications must meet federal, state and district requirements. The following items are an attempt to answer the most commonly asked questions related to PTO purchases. 1. Computer Equipment The district has set a minimum standard for the type of computer equipment that is purchased. The type of equipment must be compatible with district-owned software and it is the district's responsibility to install all software and keep the equipment in good working condition. Because of the district's responsibility after the initial purchase, it is requested that ALL computer and computer related purchases originate with a request to the Technology Department. This request for pricing and/or purchase can be made by contacting one of the following staff members: Jay Johnson, Director of Technology Support Services Kim Bowlin, Hardware Planning Coordinator /21/2017

88 2. Outdoor Equipment The district has set a minimum standard for the quality of playground equipment that is both safe for the children and maintainable by the district's Maintenance Department. ALL outdoor equipment purchases (playground equipment, benches, tables, trash cans, etc.) shall be requested on a "Request for Outdoor Equipment Purchase." A copy of the form is attached and should be duplicated for each piece of equipment requested. It is imperative that the purchase and installation be coordinated thru the Purchasing Department to ensure a safe installation that does not cross district utility lines and a proper fall surface is installed. Requests for equipment catalogs, guidelines and the purchase of outdoor equipment may be made by contacting the following staff member: Jennifer Chiu, Buyer in Purchasing Department Attachment A: Outdoor Equipment Guidelines and Procedures Attachment B: Request for Purchase of Outdoor Equipment 3. Audio Visual Equipment Requests for the purchase of audio visual equipment such as televisions, DVD/CD players, jam boxes, etc. may be made by contacting the following staff member: Nancy Dunn, Buyer in Purchasing Department Construction Projects If a P.T.O. is interested in funding a project that requires construction on a campus, the principal must submit a building modification form with the appropriate budget code. Examples of construction projects requiring a building modification form: Marquee Irrigation System Running Tracks Appliances (dishwashers, ice machines, garbage disposals and other appliances requiring gas, electrical or water hook-ups) When the project is approved, a project manager will be assigned from the district s Facilities Planning Department. The project manager will contact the principal and begin the process of arranging for the project to begin. Information for this type of project can be made to: Dillon Brady, Assistant Superintendent, Facilities & Construction Other Purchases For all other capital purchases, contact Severin Castro, Director of Purchasing, at /21/2017

89 Attachment A OUTDOOR EQUIPMENT -- GUIDELINES AND PROCEDURES Cypress-Fairbanks ISD has developed guidelines for the purchase of playground equipment. It is the district's ultimate responsibility to provide a safe playground environment that complies with all state, federal and ADA requirements. Please consider the following when planning for the purchase of outdoor equipment. GUIDELINES: 1. Approved vendor catalogs to select equipment are available from the Purchasing Department. Please contact Jennifer Chiu, Assistant Director of Purchasing, at for catalogs. 2. All purchases of playground equipment will include the following costs: a. Delivery and Installation -- vendor catalogs do not include shipping or installation costs b. Fall Surface -- the district's Maintenance Department provides a standardized hardwood mulch fall surface c. Border the Maintenance Department will price and install a standard border 3. The district is responsible for maintaining the equipment and fall surface after the initial purchase. 4. Wooden products or structures are not approved for use in CFISD. PROCEDURES: The Purchasing Department staff will follow your purchase request through the following steps: 1. The school will begin the procurement process by completing a "Request for Outdoor Equipment Purchase" with a Principal's signature and forwarding the form to the Purchasing Department at the Windfern Annex. Include a complete description of the desired equipment and a diagram of requested location. 2. Purchasing will provide your request to the Maintenance and Safety Departments for location of utilities, drainage, clearance, safety considerations, etc. If the requested location or equipment is not approved, the Maintenance Department or Special Services staff will work with the school to find another appropriate site or equipment. 3. Purchasing will proceed with price quotations or a bid request from reputable vendors that will provide a delivered and installed price of the equipment. It should be noted that catalog prices do not include freight or installation costs. 4. Price quotations for the turnkey project will be provided to the originator for approval prior to the actual purchase. 5. After cost and budget approval, purchasing will issue a purchase order with the name and phone number of a contact person at the school site and a contact person from the Maintenance Dept. 6. Coordination of the timeline and installation process will be handled by the Maintenance Dept. 7. Maintenance will coordinate the location of district owned and non-owned utilities with the vendor. 8. Maintenance and Special Services will inspect the equipment installation. 9. Maintenance will notify campus official and Purchasing of completion with recommendation for payment to vendor. 10. Purchasing will process purchase order for payment to vendor. 11. Maintenance will secure equipment with safety barrier until proper fall surface has been installed /21/2017

90 Attachment B REQUEST FOR PURCHASE OF OUTDOOR EQUIPMENT School: Contact: Request for - Additional Equipment: Budget Amount (if applicable): $ Principal s Signature: Phone: or Replacement of Worn/Damaged Equipment Budget Code: Date: Diagram of Desired Equipment Location (must be attached): Yes, attached Description of Items: Schools: Do not write below this line Forward request with literature/catalog to Purchasing Initial Date 1. Purchasing Form received by purchasing 2. Safety Scott LeDoux reviews and approves description, diagram and components for safety Maintenance Identify location of equipment placement and space availability Utilities marked and clear Drainage identified and clear Equipment requires sq.ft. Border, mulch, installation cost: ft..x $5.50/ft = $ 3. Purchasing Equipment cost and installation $ Total cost of equipment, installation, border, mulch $ 4. Purchasing Forward total cost to school principal 5. Campus Cost approved by principal 6. Purchasing Vendor insurance approved 7. Purchasing Issue purchase order Vendor: Date: PO# 8. Purchasing Copy of PO, diagram, installation instructions to Maintenance 9. Maintenance Installation verification: Utilities located and clear Safety Vendor installation completed and checked Maintenance Border and fall surface installed project completed and ready for use 10. Purchasing Project completed, campus notified, process pmt /21/2017

91 Overview of the USDA Smart Snacks Rule Guidance for School Principals and Staff Definitions Competitive food All food and beverages sold to students on the school campus during the school day, other than those meals reimbursable under the National School Lunch Program and the School Breakfast Program. School campus All areas of the property under the jurisdiction of the school that is accessible to students during the school day School day The period from midnight before to 30 minutes after the end of the official school day A La Carte Menu items sold individually and, therefore, not part of the school nutrition program s reimbursable meals The Healthy, Hunger Free Kids Act required the USDA to establish nutrition standards for competitive foods sold in schools. USDA s interim final rule Nutrition Standards for All Foods Sold in School, is effective July 1, These science based nutrition standards promote a healthy school environment and apply to all foods and beverages sold outside of the reimbursable school nutrition program meals, such as: A la carte cafeteria sales Snack bars Fundraisers HOW WILL THIS IMPACT MY SCHOOL? Fundraisers School stores Vending machines Schools may use foods and beverages that meet the competitive foods standards to raise funds for school sponsored events, clubs, and activities. These standards do not apply to items sold off campus or during non school hours. Schools may adopt stricter standards through their Local School Wellness Policy. Fundraisers for food and beverage items that do not meet Smart Snacks may not occur at any time during the school day. Parent organizations and extracurricular groups that wish to sell foods or beverages for fundraising purposes should be apprised of these standards. Beverages Allowable beverages for all grades include plain water, low fat (1%) milk (unflavored), nonfat milk (flavored and unflavored) and 100% fruit and/or vegetable juice. Although federal regulations allow High schools the additional flexibility to sell other flavored and/or carbonated diet and low calorie beverages, including those that contain caffeine, the Texas Public School Nutrition Policy does not currently allow carbonation of any kind. Additional state regulations are forthcoming to further clarify beverage requirements Record Keeping Schools must keep accurate documentation of compliance with the Smart Snacks rule. Compliance will be determined during the time of the district s Administrative Review. A Team Approach These nutrition standards extend beyond the scope of the school food service operation. It is important for school leadership and staff to partner alongside school nutrition professionals in order to communicate information about the new standards, as well as develop a plan to ensure compliance /21/2017

92 NUTRITION STANDARDS FOR FOOD Fresh, canned or frozen fruits with no added ingredients except water or packed in 100% juice, extra light syrup or light syrup Fresh vegetables and canned vegetables with no added ingredients except water or sugar for processing NSLP/SBP Entrée items are exempt when they are sold on the day of service or the school day after service Sugar Free Chewing Gum All other food items must meet the following criteria, for all age/grade levels: General Criteria (must be one of these 4 items) 1. Whole grain rich (50% or more whole grains by weight or first ingredient whole grain); OR 2. Have as the first ingredient fruit, vegetable, dairy or protein (meat, beans, nuts, eggs etc.);or 3. A combination food with at least ¼ cup fruit and/or vegetable; OR 4. Contain 10% of the Daily Value of one of the four nutrients of public health concern: calcium, potassium, vitamin D, dietary fiber AND meet the following additional nutrient standards Nutrient Standard Calories Sodium Entrée: 350 calories per item Snack/Side Dish: 200 calories per item Entrée: 480 mg sodium per item Snack/Side Dish: 230 mg sodium per item ( 200 mg after July 1, 2016) Total Fat Saturated Fat Trans Fat Total Sugar 35% of total calories from fat per item as packaged/served 10% of total calories per item as packaged/served Zero (<0.5 g) grams of trans fat per portion as packaged/served 35% of weight from total sugars per item (dried/dehydrated fruits/vegetables exempt) NUTRITION STANDARDS FOR BEVERAGES Beverage Elementary School Middle School High School Plain water, with or without carbonation No size limit No size limit No size limit Low fat milk (1%), unflavored 8 oz 12 oz 12 oz Nonfat milk, unflavored or flavored 8 oz 12 oz 12 oz 100% fruit/vegetable juice (A) 8 oz 12 oz 12 oz Caffeinated beverages Not allowed (B) Not allowed (B) Allowed Calorie free (C) and low calorie beverages (D) Not allowed Not allowed Limited Allowability per State Regulations (E) (A) 0% fruit/vegetable juice and 100% fruit/vegetable juice diluted with water, with or without carbonation, and no added sweeteners (B) Foods and beverages must be caffeine free, with the exception of trace amounts of naturally occurring caffeine substances (C) Other flavored and/or carbonated beverages ( 20 fl oz) that are labeled to contain 5 calories per 8 fl oz, or 10 calories per 20 fl oz (D) Other flavored and/or carbonated beverages ( 12 fl oz) that are labeled to contain 40 calories per 8 fl oz, or 60 calories per 12 fl oz (E) Texas regulations do not allow certain calorie free and low calorie beverages to be sold during the school day This product was funded by USDA. This institution is an equal opportunity provider /21/2017

93 SECTION 7 MISCELLANEOUS

94 Utilization of Vehicles/Trailers for CFISD Events Guidelines for Utilizing Vehicles/Trailers Non-district employees who voluntarily utilize their privately-owned vehicles to transport CFISD students and/or district-owned trailers must complete the Cypress-Fairbanks ISD Notice of Driver Liability form (page 7.2 of this document) and provide the required documentation, as stated in said document, to the club sponsor or director /14/2017

95 CYPRESS-FAIRBANKS ISD NOTICE OF DRIVER LIABIILTY (Utilizing Vehicles/Trailers) I recognize and acknowledge that I am voluntarily driving my privately-owned vehicle and pulling/utilizing a district-owned trailer to transport property owned by Cypress-Fairbanks ISD and/or Cypress-Fairbanks ISD students to a district event/activity or for other purposes associated with a district event or activity. I certify that I am 21 years or older, possess a valid driver s license and the pulling vehicle has current license plates, approved through the vehicle inspection requirements of the State of Texas, and I possess documented proof of liability insurance. Furthermore, I agree to obey all traffic laws and to drive directly to and from the event/activity. I also acknowledge that I shall be held fully responsible for any and all loss of or damage to the trailer or its contents during the use of the trailer under this Agreement whether caused by collision, fire, flood, vandalism, theft or any other cause. I agree to absolve, exonerate and hold the district and/or its institutions harmless from liability or any risks associated with my use and possession of the districtowned trailer. Risks include, but are not limited to, all liability associated with my operation of a motor vehicle, pulling a trailer, any and all injuries, and any and all damages to property or contents resulting from my use or possession of the trailer. I accept total responsibility for any and all repairs and/or replacement of the trailer in the event of any damage that occurs for reason by any party. I will make no claim against Cypress-Fairbanks ISD for any damage that may occur as a result of the use of this trailer. I further understand that my personal property (contents) are not covered by any district property insurance coverage, and I also acknowledge that my personal automobile coverage may not cover damages to the contents in my vehicle or in the district-owned trailer in the event of an accident. I have read and understand the above information and have been made aware of my potential liability. Print Name Date Signature Driver s License Number & Issuing State Vehicle Make: Model: Year: License Plate Number: Driver s Phone Number: Insurance Provider: Policy Number: /14/2017

96 To: PTO Presidents From: Frankie Jackson Date: June 1, 2017 Re: Donations of Technology Equipment Frequently PTO s choose to make a contribution to the school s technology program. I want to express the district s appreciation for this generosity and overall support of the technology program. I would like to assist you in making decisions about these donations. If your donation is monetary, it would be of much assistance if the funds are used to purchase equipment through the district s Purchasing department. The reasons for this approach are twofold; it allows you to take advantage of the excellent pricing we obtain through the district's contracts and it also allows us to install and support the same type of equipment used throughout the district. If your donation is in kind, meaning you have an opportunity to donate equipment, then we ask that you ensure that the equipment meets the minimum specifications provided in the attachment entitled Minimum Specification for Computer Donations. The reason for establishing the minimum specification is that much of the district s software requires this type of computer to operate properly. In either case, whether you donate money or equipment, your campus principal will contact our Technology Services department and we will be happy to coordinate your donation. We appreciate your support of the technology program. If you have any questions about donations, please see your school s principal or feel free to call me at /fj 7.3 8/21/2017

97 Minimum Specifications for Computer Donations Desktop Processor... Intel Core i t Memory 8GB DDR3 Disk Gigabytes Laptop Processor... Intel Core i5-5200u Memory 8GB DDR3 Disk Gigabytes 7.4 8/21/2017

98 7.5 8/21/2017

99 7.6 8/21/2017