Published: July 01, 2007 12:25 am      

Financial secrets

Parents hold the key to unlocking the truth

EDMOND — After two months of investigation into how much money is raised each year by booster clubs for the Edmond Public School District two things have become clear. One, the representatives of the school district know little about the booster clubs they sanction. And two, they know even less about how the booster clubs operate and how they spend the money they raise.

What is known, according to the records submitted by the Edmond high school booster clubs that applied for sanctioning, is that the clubs began the 2005-06 school year with a total of $274,357 on hand. This is the most recent year records were available for review from the district. They raised $975,502, they spent $933,511 and they carried over $313,183 to the 2006-07 school year.

Out of the sampling of organizations, more than $930,000 spent by 28 of the 36 area booster clubs, it is unclear in some instances as to how the money spent specifically helped the students. Eight of the organizations were not reviewed.

Booster clubs in school districts across the state have come under scrutiny recently because of their spending habits. Putnam City and Skiatook school districts are the two most recent.

The Putnam City School District is taking steps to put extra precautions in place after a booster club could not pay all of its vendors, forcing the school district to step in and pick up the tab.

In Skiatook, police still are investigating the alleged embezzlement of bank funds established for a party for high school seniors.

Although booster clubs in the Edmond school district must apply for sanctioning each year, some school board members believe the requirements clubs must meet don’t require as much information as they should.

In an April school board meeting, school board member Kathleen Duncan questioned the accountability expected of the district’s clubs as they used the district’s name to raise funds for student programs.

Duncan’s concerns were echoed by School Board President Jamie Underwood. Both Duncan and Underwood are concerned about how booster clubs are spending some of their funds while the other board members would rather not ask for more input or accountability from the booster clubs.

Part of their hesitancy is fueled by their fears of additional liability applied to the district.

George Cohlmia, Kemp Cole and Charles Woodham all voiced disagreement with Duncan and Underwood as to how much the school district should be involved in the gathering and dissemination of monies collected by booster clubs.

“We don’t want to just assume liability by asking the booster clubs to be more specific in what they collect and how they spend their money,” said board member Cohlmia.

“If there are clubs that are not doing what they are supposed to do, and if they continue to act like, that they won’t continue getting money,” he said. “It will be self-correcting.”

Board member Cole echoed Cohlmia’s attitude.

“I think and hope the booster clubs police themselves,” Cole said. “We wouldn’t have a third of what we have. Without them our programs wouldn’t be what they are. We wouldn’t want to do without the things they provide.”

Charles Woodham did not return any of three telephone calls made to his residence, although during the April board meeting he voiced agreement with Cohlmia and Cole.

“There has not been a need for detailed financial information and an itemized list of all expenditures,” said school district Chief Financial Officer David Fraser. “It might be helpful for some isolated instances, but it is not the district’s responsibility to police the expenditures of the organizations.”

Clubs receiving the tax exemption status of a 501(c)(3) organization have the obligation to share their IRS 990 tax forms with anyone requesting to look at them.

According to 990 forms turned in to the IRS by clubs that have 501(c)(3) status, in at least one school, a coach’s salary was supplemented by booster club funds in the amount of $4,000 for coaching services he never completed. The coach was dismissed by the district and did not return the funds paid to him in advance by the booster club. The funds were never returned.

In another example, coaches were paid summer salaries exceeding money brought in by summer programs by $13,0000.

At a recent club meeting, the president said Sunday dinners are provided for coaches, their wives and families so that coaches will be able to start previewing films and still have family time. Vacations also have been provided by the same organization for spouses and children so the coaches could attend workshops.

Rumors and innuendoes run wild concerning how monies raised are being spent. The difficulty is in the fact that few clubs’ books are open, even to the members and few are ever audited by an outside source.

“I would advise booster clubs to have written bylaws to serve as a guide for ‘how we do business,’” said Superintendent David Goins. “In my opinion, an obvious element of the bylaws would be to ensure transparency of the club’s activities and openness of club information to its membership.”

Board members and administrators have differing viewpoints concerning what booster clubs should or should not provide as far as financial records are concerned.

Board members also agree booster clubs fill in the gap between what school districts can provide and what parents feel is needed to help have successful programs within the schools.

“They are using our name (Edmond School District) in order to raise money for students in our district, and if they’re going to be using our name then they should be accountable,” Duncan said.

Not all of the booster club members involved believe the checks and balances in place are enough to ensure the proper accounting of funds collected.

Linda Veazey, a CPA and past treasurer of the Edmond North Basketball Booster Club, said there is a great opportunity to be dishonest.

“It is really frightening. I believe that there are people who prey on others, and with no controls in some of these clubs, the worst has yet to happen,” Veazey said.

“Some of the clubs raise $15,000 to $20,000 a year, while other clubs raise in excess of $150,000 a year. While no one is going to get rich, it is just the idea that people need to know they have to be accountable.”

if a district does not require any type of internal auditing, it is giving a few people unbridled use of money, she said.

Each school year, the Edmond Public Schools requires PTOs, PTAs and booster clubs to apply for sanctioning in order to use the district’s name to raise money.

Edmond Public Schools has once again requested that officers complete their applications for sanctioning. As in the past, they were asked to attach a financial statement and a bank statement as of May 31.

“The only change (in the sanctioning procedure) is that we are requesting bylaws from the organizations,” Fraser said.

Although all of the clubs purport to have the good of the students as their primary goal, Veazey also voiced concern as to how the money is collected, recorded and dispersed.

“You have a tendency to just trust people in charge, but members of the individual clubs need to be involved and they need to know where their money is going and not blindly accept the fact that just because someone is elected to or even appointed to a position of authority they can be trusted.

“Club members should ask to see receipts for money spent. They should even be adamant about it. As club members they have to be diligent,” she said.

Assistant Attorney General Debra Schwartz said, “If a booster club receives or spends public funds or operates or administers public property, then they may be subject to the Open Records Act.

“Even if they are not subject to the Open Records Act, the school district may make it a condition of any contract with a booster club that they make their records available.”

The Putnam City School District already has gone one step toward that goal, although Edmond’s school district has not.