July 30, 2013

Booster Clubs compliant with state law

Required to have $1M liability insurance for all events, fundraisers

By Rob McDaniel
Staff Writer


Effective July 1, state law requires all school booster clubs to have their own individual tax ID number and at least $1 million in general liability insurance. The Laurel County Board of Education approved the new requirements in May and set about to train club leaders how to implement and adapt to the new policies.

The Redbook, also known as “Accounting Procedures for School Activity Funds,” is a standardized handbook outlining all policies and requirements of clubs and PTOs.

In addition to requiring the tax ID number and the liability insurance, the Redbook also stipulates that school board employees are no longer allowed to be in positions within booster clubs or PTOs that require them to sign checks or manage any kind of money

Adam Hooker, Laurel County Schools accounting director, said local booster clubs are welcoming the new changes and are well on their way to becoming compliant. 

“ All of our clubs have already moved board members from positions that would require them to manage money for the clubs,” Hooker said.  “The booster clubs are there to help the kids.  They want to do the right thing, so they’re making this transition as easy as possible.”

Christie Shrader, co-chair of the Wyan-Pine Grove PTO, said the new changes from the Redbook implemented for the 2013 - 2014 school year will benefit everyone, including students and the community.

“I think this was a great idea,” Shrader said.  “It provides a security blanket, not just for our students, but also anyone that comes out to our events.

Shrader said Hooker and his staff made the transition to being Redbook compliant very easy.

“Adam was extremely available and helpful,” Shrader said.  “He walked us through the process and even gave us some really good suggestions on local insurance companies to go through.”

Hooker said all boosters and PTOs are eagerly making changes and will be 100 percent compliant before the start of the school year.

“All of our boosters and PTOs are cooperating,” Hooker said.  “They have all already provided proof of liability insurance.  Almost all of our boosters and PTOs are already compliant to the changes in the Redbook.  The ones who aren’t yet are working on it.  This transition has went off much smoother than I initially thought it would.”