End of Year Reminders:

1. June 15th - Submit copies of financial reports to the campus principal & district office (submitthis form) no later than June 15th. The financial report is your Balance Sheet report & IncomeStatement report if you have financial software. If you do not use software, a form can becompleted with this information and is available on the district parent support organizationwebsite under Submit Documents. **Sponsors and principals may also request bank statementsand reconciliations.**

2. June-August - Perform an audit of records for the previous year. This audit is due to the campusprincipal and to the district office (submit this form) no later than Sept 15th. If you use a CPAfirm, then you can submit their audit report. If you use a committee of parent volunteers, youcan complete the form available on the district parent support organization website underSubmit Documents.

3. August 1st - Submit the 2020-2021 Year End Information sheet (after fiscal year end – June30th) to district office as soon as possible and no later than August 1st. This is a requirementfrom our auditors for ALL of our parent support organizations. To complete this form, you willneed gross receipts for 20-21, monetary donations to Klein ISD for 20-21, and new officer names& contact info for the 21-22 year.

4. If turnover of board officers, give names and contact information of new officers to campusprincipal as well.

5. If turnover of board officers, be sure to update the authorized signatures on the bank account &access to financial software if applicable. **Helpful to have copy of official meeting minutessigned by Secretary noting the election of new officers for bank transition.** Some banks arenow requiring that the officers be updated with the secretary of State. The periodic filing reportcan be completed to meet this requirement with a filing fee of $5. You may complete onlinewith SOS direct or by mailing in Form 802 Periodic Report – Nonprofit Corporation.

6. If turnover of board officers, be sure to pass on permanent & historical records and files. Pleasealso share software log-in information if applicable.

7. Incoming officers can review the existing by-laws to propose possible changes if needed.Amendments to the bylaws will follow the process outlined in the current bylaws. A new copyof bylaws should be sent to the campus principal and district office any time it is amended.

8. Verify that organization is in good standing with Texas Comptroller’s office(https://mycpa.cpa.state.tx.us/staxpayersearch/). Verify organization is in good standing withIRS (https://apps.irs.gov/app/eos/). Verify organization is in good standing with Secretary ofState (https://mycpa.cpa.state.tx.us/coa/search.do).

Checklist for Fall:

1. Prepare a budget for the new school year. If any changes to the by-laws, submit copies to thecampus principal and to the district office (by submitting document through Parent Supportwebsite).

2. Sept 15th - If you have not already submitted the Financial Audit Review performed over thesummer for the previous year, please submit to campus principal and to district office.

3. Sept 20th – Annual Fall PTO/Booster Club meeting. The topics of this meeting are primarily forpresidents & treasurers and include presentations on 990 taxes and sales taxes.

4. October 15th - Submit 3 fundraisers using the request forms (links on Parent Support website)for administrator approval no later than October 15th.

5. October 31st - Provide a copy of financial report at a meeting that includes general membershipby October 31st.

6. November 15th - File 990N, 990EZ, or 990 as applicable by the 15th of the fifth month followingfiscal year end date (for most, this will be November 15th). Submit a copy to campus principaland Central Administration (Tara Tims by submitting document through Parent Supportwebsite).

7. January 20th – File annual sales tax reports if you have a sales tax permit. (Quarterly filers willfile throughout the year on the 20th of January, April, July, and October.) Please submitconfirmation of filing of these reports to your campus principal and to the district office.

The Role of the Parent Support Organization (PSO)

The objectives of the PSO are to: • Establish and maintain a working relationship among parents, school and community. • Support school improvement teams and promote the finest education possible for the students

at a campus or for a specific organization at a campus. • Expand technology and supplement equipment and supplies. • Increase student safety and security. • Develop programs and projects that will support or enrich the curriculum or program. • Enhance the quality of education by raising funds for school supplies or programs that fall

outside the school budget. The PSO does NOT The PSO DOES • Run the school or school program • Support the educational programs and

extracurricular activities of the school or school program

• Force parents to participate in the PSO and/or school activities

• Encourage parents’ involvement in their individual children’s lives, education, class, and school

• Set policy regarding school programs • Provide feedback and suggestions for school programs

• Define the school’s curriculum • Coordinate programs and projects that will support or enrich the curriculum or program

• Dictate the technology platforms and/or software used by the school

• Encourage/fund the increased exposure of students to technology

• Define or interfere with the school’s security program and policies

• Provide feedback/assist with increased awareness of school safety and security issues

• Control the school’s budget • Organize fundraising efforts to support some additional programs, equipment, and services not covered in the school budget

• Set the educational goals, testing requirements, or compliance factors

• Support the educational goals of the school and assist with attaining those goals through parent and community volunteerism

• Have jurisdiction or authority over school staff, teachers, and other employees

• Recruit volunteers and coordinate volunteer efforts to staff PSO functions and assist with school programs

• Endorse a particular political candidate or commercial concern

• Stay aware of legislation and political issues that may impact education and schools

This PSO is organized exclusively for the charitable, scientific, literary or educational purposes within the meaning of Section 501 (c)(3) of the Internal Revenue code.

Parent Support Organization Officer Roles & Responsibilities

President Role & Responsibilities:

Preside at all meetings of the Directors.

Serve as the primary contact to the principal and represent the PTO/BoosterClub at meetings of other groups, if needed

Set the schedule for monthly board meetings for the year.

Coordinate the work of the Directors and/or committees in order that theorganization’s objectives may be promoted.

Coordinate the work so that the necessary reports are timely made to thecampus/district and to the appropriate State and Federal agencies.

Submit all fund-raiser requests on the fundraiser request form (links on ParentSupport website) to principal for his/her approval in the spring semester of thepreceding school year and no later than October 15th, of the current schoolyear.

Responsible for all financial affairs of the organization and associatedreporting thereof including any duties that may be delegated.

Co-sign checks along with Treasurer (unless district employee).

Ensure annual audit is performed.

Make a year-end financial report to the school principal as soon as it iscompleted or no later than June 15th.

Perform such other duties as deemed necessary by the Directors.

Vice-President Role & Responsibilities:

Assist the President.

Assume the duties of the President in the event of the President’s inability toserve or resignation. (co-sign checks if President is unable to do so).

Act as Parliamentarian (expert on by-laws) if no other Parliamentarian officerrole. Familiarize yourself with Robert’s Rules of Order.

Chair (oversee) organization committees.

Maintain a roll of all members of the organization.

Perform such other duties as deemed necessary by the Directors.

Secretary Role & Responsibilities:

Prepare agendas for general meetings.

Record the minutes of all meetings of the Directors, and furnish a copy ofsuch minutes to the President within one (1) week following the meeting.

o Minutes should include attended/unattended members,description of reports from directors and committees, fund-raising updates, financial update, any new business/action items,etc.

Maintain a file of all approved minutes, agendas, & materials distributed at anofficial PTO/Booster Club Meeting.

Catalogue and supervise the property of the organization.

Coordinate all correspondence relating to the organization.

Publish all notices of meetings or other matters.

Perform such other duties as deemed necessary by the Directors.

Treasurer Role & Responsibilities: The treasurer cannot be a district employee.

Monthly:

Post all financial transactions to the financial system as they occur throughoutthe month. Keep an accurate record of receipts and expenditures

o Receive all funds for the organization and promptly deposit themin the organization’s bank account.

o Write checks as needed (two signatures and proper paperworkrequired) in accordance with the approved budget. Co-sign checkswith President or other authorized signer.

Reconcile bank account monthly.

Create monthly treasurer reports (budget reports) for board meetings.

File monthly/quarterly sales tax report with Comptroller if applicable.

Keep financial forms (tax exempt forms/check requests) available forvolunteers.

Annually:

Establish good accounting procedures.

Lead the annual budget process.

Present the budget for approval at the first general membership meeting of theyear.

File 990/990EZ/990N (annual IRS informational return required for 501(c)3groups).

File annual sales tax report with Comptroller if applicable.

Issue 1099-MISC tax forms.

Establish and maintain permanent file for financial records.

Turn over all financial records to the new treasurer as applicable.

Perform such other duties as deemed necessary by the Directors.

Financial Management Handbook For Parent Organizations

Officer Responsibilities

Responsibility Guidelines

1.1 The responsibility for the proper collection, disbursement, and safeguarding of all money and all other parent organization assets and the proper reporting of each parent organization's activities to the Internal Revenue Service, State Comptroller, and to the Klein ISD rests solely with each parent organization's officers, jointly and severally, not the school district or any of its employees.

1.1.1 When an officer's term expires or becomes vacant due to resignation or other reason, it is the vacating officer's responsibility to ensure that the above officer responsibility statement is fulfilled.

1.2 The commingling of parent organization money with school money is not permitted.

1.3 School employees may not accept loans of funds from parent organizations.

1.4 A parent organization should be absolutely sure it has or will have the money necessary to meet its financial commitments. A parent organization does not have the authority to commit or to represent in any way that the KISD is responsible for any of its obligations in the way of paying bills and/or fulfilling any other agreement.

1.5 Parent organizations should seek competent tax and legal advice on their own and at their expense on an as needed basis to assist and to advise them on legal and tax matters.

1.6 According to the IRS, revenues generated from fund-raising by tax-exempt organizations should benefit the organization as a whole, not individuals. In addition, benefits given by a parent organization cannot be distributed based on participation in a fund-raiser or based on revenues individually generated in a fund-raiser. Therefore, an individual cannot be denied the opportunity to receive a benefit because of lack of participation in a fund-raiser or because a specified amount of revenue was not raised.

1.7 Each parent organization must complete the “Parent, Employee and Other Klein ISD Related Organizations Information Sheet” when requested by the business office at the central office.

1.8 Payment from parent organization funds may not be made to employees for any services rendered to that organization unless the transaction is processed through the KISD business office.

1.9 Parent organization funds and/or assets that are donated to a school must be coordinated with the school’s principal.

1.9.1 Property purchased with parent organization funds becomes the property of the school district.

1.9.2 Special district guidelines apply to computer hardware/software purchases and must be coordinated with the Klein ISD technology department prior to purchase to ensure compatibility with the District’s infrastructure.

1.9.3 Special guidelines apply when donations involve construction (including playground equipment and/or fall surface or any other permanently installed item) on District property, and must be approved by the principal and the appropriate level of District administration prior to committing or incurring any costs.

1.9.3.1 All permanently installed items must be installed by the vendor, manufacturer, supplier or their agent that is licensed to install a particular item and must meet the complete approval of the appropriate level of District administration.

1.10 “Petty cash” or miscellaneous funds for a teacher, coach or sponsor to use at his/her discretion may not be established.

1.11 The direction of the teacher, coach or sponsor, scheduling of contests, rules of participation, method of earning letters, and all other criteria dealing with interschool programs are the responsibility of school administration.

1.12 A parent organization or any other outside organization cannot give a teacher, coach or sponsor a gift in excess of the limits imposed by the KISD Board of Trustees’ Policy, which is the same as the school district can spend for a letter jacket awarded to a student.

1.13 There is a limit of three (3) fund-raisers for each organization per school year and the school principal must grant advance approval.

1.13.1 Parent organizations should work in full cooperation with the principal in conducting any activity that involves the raising of money. All requests to fund-raise must be submitted for administrator approval using the fundraiser request form no later than October 15 of the current school year.

1.14 Comply with all UIL guidelines, if applicable, and all District procedures.

1.15 Incoming officers should never accept financial records without having them audited.

Robert’s Rules for BeginnersWhat You Should Know About Getting Parent Group Business Done and Why We Do It That Way

What you canexpect at a parent

group meeting

When you want to make a formaldecision, it starts with an idea

Bylawsand

Robert’sRules of

OrderYou will get a printed agenda thatwill be used to guide the meeting.

The agenda helps keep themeeting moving, keeps thegroup on task, and ensuresthat all business is covered.

When the meeting is over, it isadjourned.

The business of the meeting isdocumented in written minutes.

They will be presented forapproval at the next meeting.

During the meeting, discussion islimited to each agenda item as it

comes up. People raise their handsand wait to be called on by the

chair, as a way to keep discussionorderly and to avoid confusion.

1. Idea!

2. Any member makesa motion, which is just

a concise way of proposing an idea.

4. The group discusses the motion (andonly the motion) until you are ready to…

3. Any other memberseconds the motion,

which means the motionwill be discussed further.

Vote on the motion (if there areenough members in attendance—

that’s called a quorum).

Table the motion until thenext meeting, to allow timeto consider the idea further.

The foundation ofevery well-run parentgroup is a strong setof bylaws that definethe PTO’s mission, itsstructure, its rules, its

officers and howthey get elected,

and even how thebylaws themselves

can be revised.

Robert’s Rules ofOrder are time-testedguidelines used bygroups large andsmall that help an

organization conductbusiness smoothly

and fairly.

or

Basic Flow of Common Parlimentary Procedure

Second!

Idea Motion Discussion Vote

SAMPLE MEETING MINUTES

ABC Elementary PTO February 2014 General Meeting Minutes

Date, Time, and Location: Tuesday, Feb. 4, 2014, at 7 p.m. in the school library

Meeting called to order by President Shirley Reed at 7:05 p.m.

Attendance: Michael Bird, Shirley Reed, Monica Arsenault, Laura Downey, Pam Brockton, Stuart Johns, Carol Dualla, Mary Sennot, Clara Parkes, Tara Shuman, Randi Brown, Adam Wayne, Sasha Smythe, Samantha Thompson, Bo Merrick, Christine Strickland, Tracy Klein, Sarah Schott, and CeCe Aston. There were 19 members in attendance; a quorum was reached. No guests in attendance.

Minutes: The minutes of 1/7/14 meeting were read and accepted.

Officers’ Reports (name of speaker, summary of business discussed)

President: given by Shirley Reed • Bingo Night was a huge success. The committee was thanked for their hard work.• Thank-you to Linda Jameson for creating a five-page outline that will be used to help answer

common questions for parents who are new to the district. Goal is to have a booklet availablefor the fall. PTO may include this in next year’s budget.

• Our wonderful Cafeteria Ladies were acknowledged for their hard work. Our cafeteria wasthe only one in the district that had a zero violation report. Their picture is in the display caseand both were given Target gift certificates. Great job!

• The spring Art Smart project will feature Milwaukee artist Hugh Lawrence. There was amotion made by Randi Brown for a $200 stipend (allocated from the fundraising surplus) tobe paid to him. The motion was seconded and accepted. The students will also participate ina penny drive to support a major project of Mr. Lawrence’s.

Treasurer: given by Pam Brockton • Treasurer’s report read and accepted/amended. Report attached.• Assemblies were discussed.

Committee Reports (name of speaker, summary of business discussed)

Pizza Kit Committee: given by Sarah Schott • Cochair needed for the Pizza Kit Sale. The cochair does not have to be a 5th grade volunteer.

Please contact Sarah Schott at (xxx) 555-3333.

Fiesta Spring Carnival Committee: given by Tracy Klein • There is a need for volunteers for the Fiesta. Please contact Tracy Klein (xxx) 555-1111 or

Cathy Allen (xxx) 555-2222 if you are able to help.

SAMPLE MEETING MINUTES

Principal’s Report: given by Michael Bird

• There was a discussion on the Building Big theme meeting. There were 30 people inattendance at the earlier 9 a.m. meeting. He announced the field trips that are being offeredfor the students that will be associated with the theme.

• Mary Sennot and Shannon Valdez were thanked for their hard work with Bingo Night. It wasgreat family fun.

• There was a great turnout for the optional Saturday 5th grade basketball games.• The Brick Paver fundraiser installation will be this spring. Profit will be determined after all

of the bricks will be sold. To date, sales are approximately $6,000, enough to justify the costof installation.

• Mrs. Silva’s class is working on a special project that will be aired on Channel 19 that willshowcase an upcoming $10 pledge donation program to benefit our Education Foundation.

• The state testing is complete. Pam Brockton along with the PTO was thanked for testingsnacks that were provided to the students.

• There will be an important upcoming School District Meeting on Feb. 21 at 7:30 p.m., at thehigh school. Budget cuts will be the topic and community dialogue will be encouraged forthe upcoming year. It will be done in a small group setting. The meeting will be announcedin the PTO newsletter and parents are encouraged to come.

• The 5th grade Camp Edmund pizza fundraiser will start after the midwinter break. The kitswill be sold by all students for a period of two weeks. The camp will be from June 8-10,2014, and it will cost $235/child.

Old Business (key information and motions voted on)

Bingo Night: Mary Sennot thanked everyone who was involved with Bingo Night. She was open to any suggestions for next year.

Book Drive: Tara Shuman updated us on the Book Drive. The books collected will go to the Glazer Elementary downtown. The collection will be in three weeks of March. Information will be in the newsletter.

New Business (key information and motions voted on)

Field Trip Expenses: Stuart Johns discussed field trip expenses. It will be tabled to another discussion for the March PTO meeting so information can be gathered about the cost of field trips and possible alternatives for helping offset some of those costs.

Next meeting is 3/4/14 at 7 p.m. in the school library

Meeting adjourned at 8:28 p.m.

Minutes compiled by Laura Downey, Recording Secretary

Sample - Meeting Minutes

(Sample for a School Based Booster Club)

YOUR BOOSTER CLUB NAME

Meeting Date:

Meeting Location:

PRESENT: List names present at meeting

I. CALL TO ORDER

The meeting was called to order by (name of person) at 9:37AM.

II. APPROVAL OF THE MINUTES

(Name) moved to approve the minutes of the (month/date) meeting. The motion was seconded. The minutes were accepted as presented.

III. ADMINISTRATIVE REPORT

A. Acknowledgements

List name of person and the acknowledgements they gave.

IV. OFFICER‚'S REPORT

A. Treasurer's Report

Year end financial statements were distributed and reviewed.

B. Grants

If any discuss status

V. COMMITTEE REPORTS

A. Name of each committee

Information discussed and shared for each

VI. OLD BUSINESS

A. Budget

Include any recommendations and whether they were approved, tabled or denied. Financial numbers and projections should be discussed here.

VII. NEW BUSINESS

Include any recommendations and whether they were approved, tabled or denied. Financial numbers and projections should be discussed here.

There being no further business the meeting adjourned at 11:15AM.

Respectfully Submitted,

Name and title of secretary

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.

Permanent Records

Internal Records:

Articles of Incorporation

Bylaws

Minutes from meetings

State Records:

Sales Tax Permit Application (if applicable)

Sales Tax Permit (if applicable)

Certificate of Formation of Nonprofit Corporation from the State of Texas

State Sales Tax Exemption Notification

State Franchise Tax Exemption Notification

Federal Records:

Copy of IRS Form SS-4, Application for Employer Identification Number

Copy of Subordinate Letter (if under group exemption)

Copy of IRS Form 1023 (if not under group exemption)

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.

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 Audit Reports

All financial backup including checkbook and banks records

Information related to contributions received by a PTO / Booster Club from individuals or businesses

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.

5/24/19

Tips for Keeping the PTO’s Financial Books Happy, Happy, Happy

shared by former treasurer

1. Use web-based budgeting software such as Quicken. It’s well worth the money!2. Install a locking drop-box in a convenient area for the PTO. This allows a secure

space for the school staff to place mail, checks, etc. in one place.3. Have a folder that is kept in a designated PTO area in the main office where you

place checks that need to be signed. This way your check signers will know whereto look!

4. Have 2 signers for all purchases. If possible, have your PTO President sign mostchecks. It protects you and keeps your President in the loop!

5. Know that there’s a difference between Federal Taxes and Texas Sales and UseTax! Both must be reported every year!

6. The scoop on Federal Taxes (990)a. Must be reported EVERY year!b. Calculated per your PTO’s fiscal year (likely July 1 thru June 30).c. Due on the 15th day of the 5th monthly after the end of your PTO’s fiscal year.

For example, if your PTO’s fiscal year is July 1, 2020 thru June 30, 2021, thenyou must file with the IRS by November 15, 2021.

d. Refer to www.irs.gov7. The scoop on Texas Sales and Use Tax

a. Must be reported EVERY year!b. Calculated per the calendar year (January 1, 2021 thru Dec. 31, 2021).c. Due on or before January 20, 2022.d. (May have to file more often as determined by Comptroller). Refer to

www.window.state.tx.us8. Inform the PTO Board that sales tax can NOT be reimbursed because you are a

501(c)(3). For each purchase that is made, the purchaser can typically submit aTexas Sales & Use Tax Exemption Certificate or a Texas Sales & Use Tax ResaleCertificate to the retailer. Keep in mind each retailer has its own policy on how tosubmit these documents.

9. Have copies of your PTO’s Texas Sales & Use Tax Exemption Certificate as wellas your PTO’s Texas Sales & Use Tax Resale Certificate readily available to boardmembers. You should keep these in the designated PTO area in the main office.

10. If a mistake is made, BREATHE deep, own the mistake, and then fix it!

Electronic Meetings

If you have not already amended bylaws to allow for electronic meetings on an as needed basis, please do so. The norm should be in-person meetings with a pivot to an electronic format as needed for extenuating circumstances.

A good resource for information for related to this topic and sample amendment revisions is:

Robert’s Rules of Orders Sample Rules for Electronic Meetings