PTO Today

Can anyone make sense of this? This could be extremely hurtful to our school. Our teachers have not had support in the past. Our PTO has really helped out the school to no end and the teachers are very very grateful. But, we have a new director who has not followed rules and made bad choices. He does not seem to like us very well since we voice our opinion when laws are broken or very poor decisions are made. Also, in the past, funds never reached the teachers for supplies when they were supposed to.

SB2054

Bill Information for SB2054

I would ban together with all your P.T.O.s & PTAs in Tenn. and protest this.
It seems like a huge infringement of your rights. Maybe call the ACLU?

What exactly are your concerns? The bill seems to be full of a lot of common sense requirements.

As far as protesting, it's a bit late for that. This is now law. Apparently it passed and took effect 7/1/07 in Tennessee. I see this one as much more about protecting stakeholders than "restricting PTOs".

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Local Education Support Group Financial Accountability Act of 2007.
Requires school board to adopt a policy regarding local education support groups. Prohibits the authorization of such groups until a policy has been adopted. Defines student activity funds and school support group organization funds and specifies provisions and restrictions for each. Prohibits a school employee from acting as a treasurer or bookkeeper for a school support organization.
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Basically, the school districts are required to set some policies for support groups (including parent groups, band boosters, etc.). Those groups then need to follow some pretty basic best practices regarding organizational structure, handling of funds, reporting accountability, and assuring activities support the organization's mission.

Which part do you have a problem with?

There are a couple of amendments that make a few changes, but posted below is the summary (before amendments). Note - the summary is much easier to absorb than the actual bill language. Visit Summary for SB2054 for all info, including amendments.

Important terms to note (I'm paraphrasing, see actual bill for complete definition):

Activity funds - funds raised by student orgs, school employees, school activities - deposited in school activitiy accounts. (This is a standard practice already in place. For example, if the cheerleaders have a fundraiser, the sponsor cannot just hold the money - they have statewide rules to follow. The school is the trustee of all activity funds.)

School support group funds - funds raised by independent organizations like PTO, Band booster, etc.

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Bill Summary for SB2054 / *HB1467

This bill prohibits school boards, school employees, or officials from authorizing any group or organization to use a school district's or school's name, mascot, logos, property, or facilities for the purpose of raising money until the local board of education for the LEA in which the district or school is located adopts a policy concerning local school support groups. For purposes of this bill, a local school support group is any PTA, PTO, or parent teacher support association, or any other foundation, booster club, or other nongovernmental organization whose primary purpose is to collect or receive money to support a school district, school, school club, or any athletic, performing arts, or academic activity related to a public school.

This bill specifies several minimum requirements for any local school support group policy. The most significant requirements include:

(1) The group must provide a copy of its by laws and proof of recognition as a nonprofit organization before initiating support, assistance or raising money;
(2) The group must operate within the applicable guidelines and standards set by any related state association;
(3) The group must obtain pre-approval from the director of schools for any fundraisers;
(4) The group must keep financial records for at least three years;
(5) School employees are not permitted to act as treasurer for a group; and
(6) A majority of the voting members of any group's board must not be school employees.

This bill requires that any school activity funds be turned over to a properly designated school official as school property; provided, however, this bill authorizes any LEA to authorize principals within the LEA to enter into an agreement with a local school support group to operate and collect money at a concession stand at school events so long as a non-school official is in charge of collecting and accounting any monies received. Any money collected from a concession stand operated by a local school support group would be considered school support group funds and not activity funds.

This bill prohibits a local school support group from:

(1) Using the school's or school district's sales tax exemption to purchase items;
(2) Representing that its activities or financial commitments are made on behalf of or binding upon any school or school district;
(3) Using school support group funds for a purpose other than ones related to supporting a school district, school, school club or school athletic, performing arts or academic activity; or
(4) Maintaining a bank account that bears the employer identification number of a board of education, school board, school, or any other governmental entity.

This bill requires any local school support group or any group or organization that raises money and represents itself as a school support group to be subject to audit by the office of the comptroller of the treasury.

If you lived in our county you would understand where I am coming from. I have teachers on my board and my treasurer is a very trusting teacher (for security). It sounds as if it may not be as bad as I thought. From what you guys are saying is that we can still have our separate bank account and decide where our funds can go or what we purchase. Is this correct?

We must have some non political say so. There is too much in our school. Lots of people in the wrong places for the wrong reasons... but there are many good people in good positions also. Don't get me wrong, we love our school, our kids and our teachers and that is why we do what we do and fight for it.

I'm getting a bit confused with the Activity funds vs. support group funds since we fundraiser in the school often with teachers. I do not want to do all this hard work and then turn it over and let them to decide that they will spend it on something that makes them look good and not for classrooms and teachers or even playground etc... Also, I do not want to go to our Director of Schools and have him tell me what we are to spend our money on.

Our teachers currently receive $100 at the beginning of the year and $75 at the end. One of which is for consumables the other must stay in the room. But of course at a low income, somewhat neglected Elementary School, $100 or $75 does not purchase much. We all know Elementary kids need more than just pencils and paper.

Thank you for all your help. We have great parents and members of our board who pull together when times are tough. We are here for the children and relatively new, we need all the help we can get!

Your funds will continue to be your own, deposited in your account, and spent as you wish (within your stated mission). You can't state your mission as supporting the school and then decide to spend the money on, for example, endangered animals.

Activity funds are all those moneys raised under the school's umbrella: cheerleaders, chess club, sales of theatre tickets for school performances, senior prom committee, fundraisers owned by the principal, after school clubs, etc. When you think about it - that's a lot of money each year and there's danger of accountability issues. You don't want teachers/sponsors/club presidents holding money or setting up bank accounts. Thus the state enforces responsibility on the schools to establish rules and act as trustee of the funds. (And no - it doesn't just go into one big pot - it's earmarked for the group that raised it.)

On the PTO funds (school support group funds), there's some additional accountability in that you need to coordinate fundraisers with the school and provide some year-end reporting. But it's still yours. Note - you do lose the ability for a school employee to be a treasurer or a signer on the account.

One point they do seem to be making is that concession sales by default belong to the school - with principal being able to authorize school support groups to run them. (I think this was an area the amendment tweaked.) I imagine this is especially geared towards big concessins, like football games.

All in all, I think it's some good legislation.

In what way do you think it might be hurtful? I dont understand your concerns. It seems like a good sound policy to me, from which many schools and parents could benefit. Accountability is always important in any group that raises money and just becasue the safeguards have been put in place by the powers that be, and not your own group, doesnt mean its a bad thing. I wonder what brought it all on, there must have been issues somewhere in the state, that brought on these rules.

Let me add an edit/update here as folks may skim (especially since my copying the bill summary made this thread so long).

I think that bec811 is beyond the initial concern/question although this is still a good discussion topic.

Legislation is never easy to understand at first glance. I think the original concern was the misunderstanding that the PTO's funds would be classified as Activity Funds and thus put under the school's jurisdiction.

PTO funds (school support group funds) are still their own.

In reply to JHB, who is very neutral and helpful by the way, yes that is it. I originally was handed SB2054 on paper (today) with parts underlined by a school official. There was no separation or explanation of school activity funds vs. support group, one of the sentences that was underlined was: "This bill requires that any school activity funds be turned over to a properly designated school official as school property; provided" and then the underlined stopped for a bit and went on. It was the words "turned over" that got me and the fact that we spoke up about issues with the director making unlawful decisions and control comments were made. Also, I want to make sure that I understand the law completely in case they misinterpret it (and that could be accidentally).

I value the advice given here and really need it.

Forgive me for asking, but someone said it is a law now... what line states that?? (trying to learn legal)

"Signed by the Governor" (in the timeline).

Tim