Financial Compliance
Financial Compliance
Staff ensures financial compliance within the district’s campuses and departments. More detailed reviews are also completed when a principal, secretary and/or bookkeeper are replaced at a campus or department. The district schedules full annual reviews on a rotating basis. Scope of review is limited from three months to a school year of financial transactions.
Financial Compliance reviews may contain but not limited to:
- Cash collections including Revtrak and SuccessFund transactions
- Procurement (requisitions, purchase orders, or contracts)
- Accounts Payable (check requests, credit card transactions, and reimbursements)
- Activity accounts including fundraising and teacher activity detail reports
- External accounts including but not limited to booster clubs and campus courtesy committees
The Financial Compliance Trainer provides:
- Training for district staff responsible for financial processes
- Training throughout the year for complex financial processes, new processes, and campus or department reviews
- Training for both individuals and group settings and remote via Microsoft TEAMS
The Financial Compliance Trainer provides:
- Training for district staff responsible for financial processes
- Training throughout the year for complex financial processes, new processes, and campus or department reviews
- Training for both individuals and group settings and remote via Microsoft TEAMS
SUCCESSFUND
SuccessFund Homepage
Reconciliation for Monthly SuccessFund Deposit (Campus Cash Receipts)
SuccessFund FAQs
SuccessFund How to Videos
SuccessFund Help Center
Accepting Payments for District Events
SuccessFund Campaign Creator Guide
MISC ITEMS
Collections Decision Tree new
Refund Form
Bingo Games in Texas
Attorney General Opinion JM-1176 on Raffles
Only clubs and organizations that have 501(c)(3) tax exemption status by the IRS meeting the requirement of the Texas Charitable Raffle Enabling Act
Introduction
Financial Compliance and individuals associated with the Pasadena Independent School District are not an authority on tax-related or accounting situations concerning Parent Organizations, Booster Clubs and Exempt Organizations. Parent Organizations, Booster Clubs and Exempt Organizations should obtain competent independent counsel concerning tax and accounting-related circumstances.
Getting Started
STEP 1. FORM A STEERING COMMITTEE
What to Do: Identify mission, establish official name for the organization and recruit an initial board of directors. Become familiar with the Life Cycle of a Public Charity and Pasadena Independent School District board policy.
Public Charity Life Cycle
Life Cycle of a Public Charity
Pasadena ISD Board Policies
Relations With Parent Organizations (GE Local)
Community Relations Nonschool Use of Facilities (GKD Local)
Community Relations School Volunteer Program (GKG Legal)
STEP 2. OBTAIN APPROVAL FROM PRINCIPAL
What to Do: Obtain approval from the campus principal to establish a new parent organization. Link to the approval form is provided below. Once the form is completed, submit to the campus principal for approval.
Parent Organization Registration Approval Form
STEP 3. DEVELOP GOVERNING DOCUMENTS
What to Do: Each parent organization must develop and maintain bylaws that are reviewed on an annual basis by all of the parent organization officers. Bylaws should contain the detail of the rules of membership such as the organization's fiscal year, organizational structure and the method used to elect officers. Each organization must elect a minimum of three officers with two of them being a president and a secretary. However, most organizations will elect a full slate of officers.
Sample-Articles & Bylaws for Corporation
Sample-Articles & Bylaws for Association
Roles of Officers & Committees
Purpose of Conflict of Interest Policy
Sample-Conflict of Interest Statement
STEP 4. EMPLOYER IDENTIFICATION NUMBER (EIN)
What to Do: All organizations that conduct business are required by the IRS to have their own EIN. A member's social security number should not be used as the organization's EIN for banking or other business purposes. Parent Organizations are separate entities and cannot use the District's EIN. Below is the link to apply for an EIN online.
Understanding Your EIN-Publication
STEP 5. FILE FOR CERTIFICATE OF FORMATION
What to Do: File for a Certificate of Formation with the Texas Secretary of State. A link with the instructions and application is provided below. Also provided is a link to frequently asked questions.
Texas Secretary of State-Nonprofit Organizations
Certificate of Formation-Nonprofit Organizations
Texas Secretary of State-Frequently Asked Questions
STEP 6. HOLD GENERAL MEMBERSHIP MEETING
What to Do: The general membership should approve the establishment of the organization and approve bylaws. An election of officers should be conducted in accordance with the approved bylaws. Elected officers should obtain a post office box for the official mailing address and select a local bank to open an account.
STEP 7. OBTAIN 501(c)3 Exemption
What to Do: Identify mission, establish official name for the organization and recruit an initial board of directors. Become familiar with the Life Cycle of a Public Charity and Pasadena Independent School District board policy.
Applying for Section 501(c)3 Status (e-video)
Applying for Tax Exempt Status
IRS Tax Exemption-Frequently Asked Questions
Top Ten Tips to Shorten the Application Process
STEP 8. APPLY FOR SALES TAX PERMIT
What to Do: If the organization will be selling any taxable items or services it must apply for a Sales Tax Permit thru the Texas State Comptroller's Office. While sales tax exemption apply to purchases necessary to the organization's exempt function, exempt organizations must collect tax on most of their sales.
Sales and Use Tax Introduction
Sales Tax Permit Online Application
STEP 9. SALES AND FRANCHISE TAX EXEMPTION
What to Do: Once 501 ( c )3 designation has been achieved, the organization must apply for an exemption from sales and franchise tax from the Texas State Comptroller's Office. This is done by written request, which includes a description of activities, copies of articles and bylaws and a copy of the IRS letter granting tax exemption.
Tax Exemptions for Qualified Organizations
Sales Tax Exemption Application
Franchise Tax Exemption Application
STEP 10. SEND COPIES TO PRINCIPAL
What to Do: Send copies of the following documents to the campus principal or their designee. A link to the List of Officers form is provided below. These documents should be kept current.
Bylaws
Employer Identification Number
Letter of Determination
STEP 11. Create Permanent Documents File
What to Do: Put all 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 file electronically and provide it to several officers to help ensure that the information is safeguarded.