MISD Booster Clubs Guidelines Training

1
MISD Booster ClubsGuidelines Training

• Roy Renzenbrink, Director of Fine Arts
• April Lam, Internal Auditor
• August 4, 2009

2
Agenda

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

3
Organization

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

4
Guidelines

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

5
Fund Raising

• Submit a Fundraiser/Activities Approval Form to
  Principals
• (new revised form)
• Use internal controls to secure money collected
  from fundraising
• Funds collected must be used to support school
  activities

6
Accounting

• Bank Accounts
• Obtain an Employer Identification Number (EIN).
  Booster Clubs are not allowed to use the
  Districts EIN.
• Suggest that at least 2 officers be signers.
  District employees cannot serve as Treasurer or
  signer on the bank accounts.
• All collections for fees, dues, and fundraising
  must be deposited upon receipt.
• Reconcile bank statement monthly.

7
Accounting

• Record Keeping
• 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.

8
Accounting

• Internal Controls
• Separation of duties
• Training of new officers
• Policies and procedures

9
Auditing

• Why?
• 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.
• When?
• 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

10
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.

11
Sales Tax

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

12
Sales Tax

• 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

13
Federal Reporting

• Booster Clubs are not required to file an
  information return if annual gross receipts lt
  25,000.
• Booster Clubs with 501 (c)(3) exempt status file
  Form 990-EZ if annual gross receipts lt 1 million
  (25,000 - 999,999) and total assets lt 2.5
  million.
• Booster Clubs with 501 (c)(3) exempt status file
  Form 990 if annual gross receipts gt 1 million or
  total assets gt 2.5 million.

14
MISD Booster Club Contact

• Central Office April Lam, Internal
  Auditor 469-742-4052
• Shawn Pratt, Director of Athletics 469-742-4185
  Roy Renzenbrink, Director of Fine
  Arts 469-742-4093
• Boyd HS Rick McDaniel, Principal 469-424-5421
• McKinney HS Amy Philachack, Assistant
  Principal 469-742-5880
• North HS Sandra Baxter, Bookkeeper 469-742-4400
• Cockrill M S Anthony Arnold, Assistant
  Principal 469-742-7876
• Dowell M S Dr. Logan Faris, Principal 469-742-6
  700
• Evans M S Todd Young, Principal 469-742-7100
• Faubion M S Principal 469-742-6900
• Johnson M S Mitch Curry, Principal 469-742-4922

15
Questions ?