Board reviews draft policy tightening oversight of PTOs, PTAs and booster clubs

Pulaski County Public Schools staff presented a draft policy and procedures to standardize oversight of parent groups, PTAs, PTOs and external booster clubs and to increase financial transparency.

The presenter summarized key requirements in the draft: any new or existing PTO/PTO/booster organization that fundraises on behalf of the district would need committee approval, adopt bylaws, secure a separate Employer Identification Number and nonprofit registration, and provide copies of IRS determination letters and annual Form 990s (when applicable). The policy would require separate bank accounts, unique EINs, two signatures on accounts, monthly reconciliations provided to the school bookkeeper and central office, and an annual financial report to the central office. The draft would also require proof of minimum liability insurance (suggested at $1 million) naming Pulaski County Public Schools as an additional insured; facility use permits; prior approval for fundraisers; and prohibition of crowdfunding platforms such as GoFundMe and PayPal for official school‑related fundraising.

The presenter explained the intent: to protect students and donors, reduce the administrative burden on principals and bookkeepers, and make external organizations’ financial activity publicly available. The draft allows for a transition period: organizations would be given time (staff suggested until the next school year) to comply before losing recognized status and access to school facilities. The presenter also proposed a committee to review and approve organizations; that committee would include a school board member or designee, the superintendent or designee, the finance director and school staff.

Board members pressed on specific items: where classroom fundraisers fit, whether existing PTOs would be put out of operation, and how to handle cases where an external booster’s EIN or bank account lapses. The presenter said classroom fundraisers run through the school and are subject to principal approval and audit procedures; external organizations may keep separate accounts but, if they fundraise “on behalf of” the district, the district would require reporting and oversight. Board members asked about payroll and compensation: the presenter noted IRS rules that outside groups cannot pay employees directly for work that makes them employees of the district; if necessary, external group payments could be processed through the district payroll to ensure compliance with tax rules.

Members discussed practical issues: whether the Education Foundation would be affected (staff said the foundation’s transparency and established governance mean it would not be treated the same as unincorporated boosters), how audits should be handled, and how to define "external organizations" vs. school‑managed fundraisers. Staff recommended clear definitions and a phased implementation to allow groups time to meet new requirements. No final policy vote occurred; staff said a revised draft with clarified definitions and timelines will come back as an action item for the board.