“SAMPLE” COMMUNICATION TO INTERESTED PERSONS
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“ABC BOOSTER CLUB”
VS.
SCHOOL SPONSORED/MANAGED ACTIVITY FUNDS-23000 FUND
INFORMATION & RECOMMENDATION ON ORGANIZATIONAL STATUS
First of all, the ABC Booster Club is a fabulous idea and has so much merit especially now when
Operational Funds are not what they used to be –for various reasons. So, financially and
programmatically the idea expressed by the “committee” (made up of parents, former instructors,
coaches and our management team, initially) to support all District programs will benefit students in a
multitude of ways.
IT IS IMPORTANT THAT WE EXPLORE THE ADVANTAGES AND DISADVANTAGES OF MANAGING AND
ACCOUNTING FOR THESE FUNDS AND ACTIVITIES, HOW THIS MANAGEMENT CAN OR WILL BE VIEWED
BY OTHERS, AND HOW THIS MANAGEMENT WILL ULTIMATELY AFFECT OUR STAFF AND STUDENTS.
It is felt that the implications of Title IX will not be an issue because this initiative will address all sports
and activities and be collaboration between the District and the Supporters. We have two options to
basically account for the funds which we understand will be primarily made up of donations.
Please consider the following:
DISTRICT MANAGED ACCOUNT – STUDENT ACTIVITY ACCOUNT
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District accountability will be stringent – District IPA will audit this fund annually and in great
detail as we account for all transactions in a highly regulated environment.
The funds/donations will be considered “public funds” and subject to the same standards and
regulatory procedures as any other District account. See the Manual of Procedures for Public
School Accounting and Budgeting, Supplement 18, Student Activity
All reports on activities will be submitted as required to the Public Education Department.
Purchase requisitions must be issued, PO’s created – routing and approvals must be acquired
before every request - the District will insist that all activities or purchases be made in
accordance with the NM Procurement Code and local procedures.
Basically, funds must be collected, receipted properly, deposited within 24 hours.
Absolutely no cash accommodations can be made.
All activities & associated transactions must be supervised and/or overseen by school officials
who are bonded/insured and authorized to carry out activities on behalf of the Board of
Education.
Business Services FTE has been reduced in past years. This initiative will require additional work
and processing time and it is not possible to hire more staff at this time.
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OPERATED AS A 501(C) (3):
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As a 501c organization much less oversight is required, however, organization must meet the
requirements of the Internal Revenue Service and the organizational structure and reporting
requirements as defined. See attached.
School district understands that the basic purpose is to support and supplement District
programs and activities K-12.
School District would also recognize that the organization would support the requirements of
Title IX and be familiar with those parameters.
District would require that the organization report periodically throughout the school year to
the BOE and submit financial statements to the District on an annual basis.
Organization would collaborate with the Superintendent and the Activities/Athletics
Coordinator and Director of Finance regularly as required to determine the need and/or level of
support and District programs’ financial status.
District and the Organization may consider a Memorandum of Agreement to clearly define
purpose and parameters.
To carry out events that involve students and/or are conducted on school property, the District
will require that the organization provide a certificate of insurance naming the District/Charter
School as an additional insured.
Organizers must realize the extent of the liability and the lack of controls that may or may not
exist with the creation of a Booster Club.
Recommendation:
IT IS RECOMMENDED THAT THE ABC BOOSTER CLUB BE ORGANIZED AS A 501C3 AND MANAGE
DONATIONS/FUND RAISING ACTIVITIES INSTEAD OF BEING MANAGED THROUGH THE DISTRICT
FINANCIAL SYSTEM. IT IS FURTHER RECOMMENDED THAT THE DISTRICT AND THE
ORGANIZATION ESTABLISH A MEMORANDUM OF AGREEMENT (MOA) – BRIEF – TO
INDICATE/CLARIFY THE PURPOSE AND OVERALL MANAGEMENT/ AND/OR COMMUNICATION
BETWEEN THE PARTIES. OF THIS INITIATIVE.
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