MISD Booster Clubs Guidelines Training Roy Renzenbrink, Director of Fine Arts April Lam, Internal Auditor August 19, 2010

Agenda Organization Organization Guidelines Guidelines Fund Raising Fund Raising Accounting / Audit Accounting / Audit Sales Tax Sales Tax Federal Reporting Federal Reporting Questions Questions

Organization Maintain Bylaws and Operating procedures – submit copies to PrincipalsMaintain Bylaws and Operating procedures – submit copies to Principals Elected Officers – submit names & contact to Principals Elected Officers – submit names & contact to Principals Provide adequate insurance coverage for activities conducted on school premises Provide adequate insurance coverage for activities conducted on school premises

Guidelines Be voluntary & provide unified support for student activities Be voluntary & provide unified support for student activities Encourage involvement by all students’ parents Encourage involvement by all students’ parents Obtain 501 (c) (3) Federal Tax Exempt Status Obtain 501 (c) (3) Federal Tax Exempt Status Function in a way consistent with the District’s guidelines Function in a way consistent with the District’s guidelines Comply with UIL regulations as applicable Comply with UIL regulations as applicable

Fund Raising Submit a Fundraiser/Activities Approval Form to Principals Submit a Fundraiser/Activities Approval Form to Principals Use internal controls to secure money collected from fundraising Use internal controls to secure money collected from fundraising Funds collected must be used to support school activities Funds collected must be used to support school activities

Fund Raising IRS, tax-exempt organizations may not require participation in fundraisers. Revenues must benefit a group as a whole instead of benefiting individual members of a group.

Accounting Bank Accounts Obtain an Employer Identification Number (EIN). Booster Clubs are not allowed to use the District’s EIN. Obtain an Employer Identification Number (EIN). Booster Clubs are not allowed to use the District’s EIN. Suggest that at least 2 officers be signers. Suggest that at least 2 officers be signers. All collections for fees, dues, and fundraising must be deposited upon receipt. All collections for fees, dues, and fundraising must be deposited upon receipt. Reconcile bank statement monthly. Reconcile bank statement monthly.

Accounting Record Keeping A disbursement voucher with attached receipts should be completed for all expenditures regardless of amount A disbursement voucher with attached receipts should be completed for all expenditures regardless of amount All funds must be supported by some type of record documenting the source, amount, and be available for audit purposes. All funds must be supported by some type of record documenting the source, amount, and be available for audit purposes.

Accounting Internal Controls Separation of duties Separation of duties Training of new officersTraining of new officers Policies and procedures Policies and procedures

Auditing Why? To assure all income and expenses are accounted for and consistent with the budgets and goals for the year. To assure all income and expenses are accounted for and consistent with the budgets and goals for the year. To protect the officers and the organization. To protect the officers and the organization.When? End of fiscal year (prefer 6/30 same as the District) or when there is change in any signers. End of fiscal year (prefer 6/30 same as the District) or when there is change in any signers. Submit the audited financial report to the principal no later than 8/1 Submit the audited financial report to the principal no later than 8/1

Auditing Who? Conduct by an outside party (CPA) or an audit committee which is comprised of at least 2 members of the Booster club (not the President or Treasurer. Conduct by an outside party (CPA) or an audit committee which is comprised of at least 2 members of the Booster club (not the President or Treasurer.

Sales Tax All Booster clubs must apply for their own sales permit number. All Booster clubs must apply for their own sales permit number. They may not use the District’s sales permit number. Exempt from sales tax when they buy, lease and rent items that are necessary to the organization’s exempt functions. Exempt from sales tax when they buy, lease and rent items that are necessary to the organization’s exempt functions. Tax-free items cannot be used for personal benefit. Tax-free items cannot be used for personal benefit.

Sales Tax Each club has 2 tax free sale days during any 12 month period per Texas State Sales Tax Law. Each club has 2 tax free sale days during any 12 month period per Texas State Sales Tax Law. Not exempt from collection and remittance of sales tax on taxable items sold Not exempt from collection and remittance of sales tax on taxable items sold

Federal Reporting Booster Clubs are required to file an information return 990-N (e-Postcard) if annual gross receipts < $25,000. Booster Clubs are required to file an information return 990-N (e-Postcard) if annual gross receipts < $25,000. (if not filed previous years, can amend filing by 10/15/10 to preserve tax-exempt status) Booster Clubs with 501 (c)(3) exempt status file Form 990-EZ if annual gross receipts < $500,000 and total assets < 1.25 million. Booster Clubs with 501 (c)(3) exempt status file Form 990-EZ if annual gross receipts < $500,000 and total assets < 1.25 million.

Federal Reporting Booster Clubs with 501 (c)(3) exempt status file regular Form 990 if annual gross receipts > $500,000Booster Clubs with 501 (c)(3) exempt status file regular Form 990 if annual gross receipts > $500,000 Subscribe to Receive Free Exempt Organization Updatehttp://

MISD Booster Club Contact Central Office:April Lam, Internal Auditor Shawn Pratt, Director of Athletics Roy Renzenbrink, Director of Fine Arts Boyd HS:Rick McDaniel, Principal McKinney HS:Amy Philachack, Assistant Principal North HS:Sandra Baxter, Bookkeeper Cockrill M S:Jeff Teel, PE Teacher Dowell M S:Dr. Logan Faris, Principal Evans M S:Todd Young, Principal Faubion M S:Patsy Turner, Principal Johnson M S:Mitch Curry, Principal

Questions ?