PART 12. STATE EMPLOYEE CHARITABLE CAMPAIGN
CHAPTER 326. CAMPAIGN MANAGEMENT
The State Policy Committee (SPC) of the Texas State Employee Charitable Campaign (SECC) proposes amendments to §326.1, concerning 10% cap; and proposes new §326.5, concerning campaign budget.
The proposed amendment to §326.1 clarifies statutory provisions that subject a fee charged by a campaign manager to a 10% cap. This rule is intended to comply with the SPC's understanding of Texas Attorney General Opinion, GA-0565 (2007). Fees charged by campaign managers to participating charitable organizations must only cover actual costs. When all fees of all local campaign managers and the state campaign manager are added up, the total amount may not exceed 10% of the total amount of contributions collected in the state employee charitable campaign that same year. If the total exceeds the 10% cap, the SPC may approve, but it is not required to approve, the excess amount. The SPC may approve the excess amount only if the SPC determines that the excess amount is supported by actual, reasonable and documented costs.
The proposed new §326.5 addresses the procedures to be followed with regard to campaign budgets when the projected combined expenses of the state campaign manager and each local campaign manager for the campaign year result in a combined fee that exceeds 10% of the total amount projected to be collected in the entire state employee charitable campaign that same campaign year.
Mike Markl, Certifying Officer for the SPC, has determined that, for the first five-year period that the proposed amendment and new rule are in effect, there are no foreseeable fiscal implications for state or local governments as a result of enforcing or administering the amended and new sections.
Mr. Markl also has determined that, for each year of the first five years the proposed amendment and new rule are in effect, the public benefit anticipated as a result of enforcing the amended and new sections will be continued consistency in treatment of and accountability for campaign expenses among campaign areas statewide. There will be no effect on small or micro businesses. There are no anticipated economic costs to persons who are required to comply with the amended or new section as proposed.
Comments on the proposals may be submitted to Roxanne Jones, SECC State Campaign Manager, United Way of Texas, 1122 Colorado, Suite 101, Austin, Texas 78701.
The amendment and new rule are proposed under the authority of Texas Government Code, §659.139, which provides that the state employee charitable campaign must be managed fairly and equitably in accordance with the SECC law and the policies and procedures established by the state policy committee. The SPC interprets this statute to authorize the adoption of rules to the extent that the policies and procedures adopted are of general applicability and affect the rights of third parties, namely charitable organizations, local campaign managers, local employee committees, the state advisory committee, the state campaign manager, and state employees.
The proposed amendment and new rule also implement Government Code, §659.148(b) - (c), relating to the fees that a campaign manager may charge to participating charitable organizations.
§326.1.10% Cap.
The only fee a campaign manager may charge is for actual campaign
expenses that are reasonable and necessary. The fee must be based
on the combined expenses of the state campaign manager and each local
campaign manager, and the total of all fees [combined
fee] may not exceed 10% of the total amount
of contributions collected
in the state employee charitable campaign unless the State Policy
Committee approves a higher amount to accommodate reasonable documented costs.
§326.5.Campaign Budget.
(a) The state campaign manager will review budgets from all local campaign areas and determine the projected combined expenses of the state campaign manager and each local campaign manager, including all fees. If the state campaign manager calculates this total will exceed 10% of the total amount collected in the state employee charitable campaign, the state campaign manager will notify the State Policy Committee.
(b) If it is determined that the projected combined expenses of the state campaign manager and each local campaign manager, and the total of all fees exceeds 10% of the total amount collected in the state employee charitable campaign, the approved budget of each Local Employee Committee is subject to review by the State Policy Committee.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on June 4, 2008.
TRD-200802884
Mike Esparza
Certifying Officer, State Policy Committee
State Employee Charitable Campaign
Earliest possible date of adoption: July 20, 2008
For further information, please call: (512) 475-0387
The State Policy Committee (SPC) of the Texas State Employee Charitable Campaign (SECC) proposes amendments to §327.1, concerning a 10% cap; proposes new §327.5, concerning local campaign budget, and proposes new §327.7, concerning local budget form.
The proposed amendment to §327.1 clarifies statutory provisions that subject a fee charged by a campaign manager to a 10% cap. This rule is intended to comply with the SPC's understanding of Texas Attorney General Opinion GA-0565 (2007). Fees charged by campaign managers to participating charitable organizations must only cover actual costs. When all fees of all local campaign managers and the state campaign manager are added up, the total amount may not exceed 10% of the total amount of contributions collected in the state employee charitable campaign that same year. If the total exceeds the 10% cap, the SPC may approve, but it is not required to approve, the excess amount. The SPC may approve the excess amount only if the SPC determines that the excess amount is supported by actual, reasonable and documented costs.
The proposed new §327.5 requires each local campaign manager to submit the approved budget for the applicable local campaign area. This rule requires that the approved budget be submitted using a required format, and it authorizes the State Campaign Manager to set the deadline for submission of local budgets to the SCM. The rule is intended to facilitate compliance with the statutorily-prescribed cap on the total amount of combined fees that may be charged statewide to participating charitable organizations. The rule also increases the likelihood that a meaningful comparison may be made among the budgets of local campaign areas as a result of standardized reporting.
A new §327.7 adopts by reference a form to be used by local campaign managers to submit the local campaign budget. The form incorporates the factors that must be considered by the SPC in approving a total combined fee that exceeds the statutory 10% cap on the combined total fees to be charged to charitable organizations by all LCMs and the SCM, as a whole. Copies of the proposed form may be obtained from the State Campaign Manager at United Way of Texas, 1122 Colorado, Suite 101, Austin, Texas 78701.
Mike Markl, Certifying Officer for the SPC, has determined that, for the first five-year period the proposed amendments and new rules are in effect, there are no foreseeable fiscal implications for state or local governments as a result of enforcing or administering the amended and new sections.
Mr. Markl also has determined that, for each year of the first five years the proposed amendments and new rules are in effect, the public benefit anticipated as a result of enforcing the amended and new sections will be continued consistency in treatment of and accountability for campaign expenses among campaign areas statewide. There will be no effect on small or micro businesses. There are no anticipated economic costs to persons who are required to comply with the amended and new sections as proposed.
Comments on the proposals may be submitted to Roxanne Jones, SECC State Campaign Manager, United Way of Texas, 1122 Colorado, Suite 101, Austin, Texas 78701.
The amendments and new rules are proposed under the authority of Texas Government Code, §659.139, which provides that the state employee charitable campaign must be managed fairly and equitably in accordance with the SECC law and the policies and procedures established by the state policy committee. The SPC interprets this statute to authorize the adoption of rules to the extent that the policies and procedures adopted are of general applicability and affect the rights of third parties, namely charitable organizations, local campaign managers, local employee committees, the state advisory committee, the state campaign manager, and state employees.
The proposed amendments and new rules also implement Texas Government Code, §659.148(b) - (c), relating to the fees that a campaign manager may charge to participating charitable organizations.
§327.1.10% Cap.
The only fee a campaign manager may charge is for actual campaign
expenses that are reasonable and necessary. The fee must be based
on the combined expenses of the state campaign manager and each local
campaign manager, and the total of all fees [combined
fee] may not exceed 10% of the total amount
of contributions collected
in the state employee charitable campaign unless the State Policy
Committee approves a higher amount to accommodate reasonable documented costs.
§327.5.Local Campaign Budget.
Each local campaign manager is required to submit a budget approved by the Local Employee Committee to the state campaign manager by the deadline set forth by the state campaign manager, and by using the required budget template.
§327.7.Local Budget Form.
The SPC adopts by reference the form entitled, Local Campaign Manager Budget, rev.1/September 1, 2008, for the submission of local campaign budgets. Copies of the form may be obtained by writing to SECC State Campaign Manager, United Way of Texas, 1122 Colorado, Suite 101, Austin, Texas 78701.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on June 4, 2008.
TRD-200802891
Mike Esparza
Certifying Officer, State Policy Committee
State Employee Charitable Campaign
Earliest possible date of adoption: July 20, 2008
For further information, please call: (512) 475-0387
The State Policy Committee (SPC) of the Texas State Employee Charitable Campaign (SECC) proposes amendments to §329.1, concerning audit and review requirements.
The proposed amendments provide that if a reconciliation letter is submitted with the application for participation in the campaign, it shall be signed by the executive director of the applicant organization. The rule also states that the SPC may require additional information if the reconciliation letter is not sufficient. Some of the additional information required may include a reconciliation letter signed by the auditor or accountant who completed the audit or accountant's review or who completed the Form 990 contained in the organization's application. This provision is added to ensure that the reconciliation of discrepancies between the audit or accountant's review and the Form 990 are accurate.
Mike Markl, Certifying Officer for the SPC, has determined that, for the first five-year period the proposed amendments are in effect, there are no foreseeable fiscal implications for state or local governments as a result of enforcing or administering the amended section.
Mr. Markl also has determined that, for each year of the first five years the proposed amendments are in effect, the public benefit anticipated as a result of enforcing the amended section will be continued consistency in treatment of and accountability for campaign expenses among campaign areas statewide. There will be no effect on small or micro businesses. There are no anticipated economic costs to persons who are required to comply with the amended section as proposed.
Comments on the proposal may be submitted to Roxanne Jones, SECC State Campaign Manager, United Way of Texas, 1122 Colorado, Suite 101, Austin, Texas 78701.
The amendments are proposed under the authority of Texas Government Code, §659.139, which provides that the state employee charitable campaign must be managed fairly and equitably in accordance with the SECC law and the policies and procedures established by the state policy committee. The SPC interprets this statute to authorize the adoption of rules to the extent that the policies and procedures adopted are of general applicability and affect the rights of third parties, namely charitable organizations, local campaign managers, local employee committees, the state advisory committee, the state campaign manager, and state employees.
The proposed amendments also implement Texas Government Code, §659.140(e)(3), wherein the SPC is directed to determine the eligibility of a federation or fund and its affiliated agencies to participate in the SECC. Basic eligibility requirements are addressed by statute in §659.146, concerning eligibility of charitable organizations in general and eligibility of federations and funds for statewide participation. These amendments incorporate those basic requirements and provide a process to facilitate review of an organization based on those provisions.
§329.1.Audit and Review Requirements.
(a) To be eligible to participate in the state employee charitable campaign, if the charitable organization's budget:
(1) is not more than $100,000, the organization shall provide a completed Internal Revenue Service (IRS) Form 990 and an accountant's review that offers full and open disclosure of the organization's internal operations; or
(2) is greater than $100,000, the organization shall be audited annually in accordance with generally accepted auditing standards of the American Institute of Certified Public Accountants. A copy of the report of such audit shall be provided with the application along with a completed Internal Revenue Service (IRS) Form 990.
(b) When a charitable organization submits an audit
or accountant's review, a copy of the organization's most recent annual
audit or accountant's review must be included with the application.
The audit or accountant's review must cover the fiscal year ending
not more than 18 months prior to the January of the campaign year
in which the organization is applying for participation. The IRS Form
990 and audit or accountant's review must cover the same fiscal period.
[If the revenue and expenses on these two documents differ, the
reconciliation must be included in the IRS Form 990 itself or be included
in a letter of reconciliation submitted by the certified public accountant
who completed the audit or accountant's review.]
(c) If the revenue or expenses on the audit or accountant's review differ from those appearing in IRS Form 990, a reconciliation must be included in IRS Form 990 itself or be explained in a letter of reconciliation signed by the Executive Director and enclosed with the application.
(d) Should the accompanying reconciliation letter not clarify the differences to the satisfaction of the committee, the committee may require additional explanation from the applicant organization. The committee may also require additional explanation to be submitted in the form of a reconciliation letter signed by:
(1) the auditor or firm that conducted the audit;
(2) the accountant or firm that conducted the accountant's review; or
(3) the accountant or firm who prepared IRS Form 990.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on June 4, 2008.
TRD-200802885
Mike Esparza
Certifying Officer, State Policy Committee
State Employee Charitable Campaign
Earliest possible date of adoption: July 20, 2008
For further information, please call: (512) 475-0387
The State Policy Committee (SPC) of the Texas State Employee Charitable Campaign (SECC) proposes amendments to §330.1, concerning audit and review requirements.
The proposed amendments provide that, if a reconciliation letter is submitted with the application for participation in the campaign, it shall be signed by the executive director of the applicant organization. The rule also states that the SPC may require additional information if the reconciliation letter is not sufficient. Some of the additional information required may include a reconciliation letter signed by the auditor or accountant who completed the audit or accountant's review or who completed the Form 990 contained in the organization's application. This provision is added to ensure that the reconciliation of discrepancies between the audit or accountant's review and the Form 990 are accurate.
Mike Markl, Certifying Officer for the SPC, has determined that, for the first five-year period the proposed amendments are in effect, there are no foreseeable fiscal implications for state or local governments as a result of enforcing or administering the amended section.
Mr. Markl also has determined that, for each year of the first five years the proposed amendments are in effect, the public benefit anticipated as a result of enforcing the amended section will be continued consistency in treatment of and accountability for campaign expenses among campaign areas statewide. There will be no effect on small or micro businesses. There are no anticipated economic costs to persons who are required to comply with the amended section as proposed.
Comments on the proposal may be submitted to Roxanne Jones, SECC State Campaign Manager, United Way of Texas, 1122 Colorado, Suite 101, Austin, Texas 78701.
The amendments are proposed under the authority of Texas Government Code, §659.139, which provides that the state employee charitable campaign must be managed fairly and equitably in accordance with the SECC law and the policies and procedures established by the state policy committee. The SPC interprets this statute to authorize the adoption of rules to the extent that the policies and procedures adopted are of general applicability and affect the rights of third parties, namely charitable organizations, local campaign managers, local employee committees, the state advisory committee, the state campaign manager, and state employees.
The proposed amendments also implement Texas Government Code, §659.140(e)(3), wherein the SPC is directed to determine the eligibility of a federation or fund and its affiliated agencies to participate in the SECC. Basic eligibility requirements are addressed by statute in §659.146, concerning eligibility of charitable organizations in general. These amendments incorporate those basic requirements and provide a process to facilitate review of an organization based on those provisions.
§330.1.Audit and Review Requirements.
(a) To be eligible to participate in the state employee charitable campaign, if the charitable organization's budget:
(1) is not more than $100,000, the organization shall provide a completed Internal Revenue Service (IRS) Form 990 and an accountant's review that offers full and open disclosure of the organization's internal operations; or
(2) is greater than $100,000, the organization shall be audited annually in accordance with generally accepted auditing standards of the American Institute of Certified Public Accountants. A copy of the report of such audit shall be provided with the application along with a completed Internal Revenue Service (IRS) Form 990.
(b) When a charitable organization submits an audit
or accountant's review, a copy of the organization's most recent annual
audit or accountant's review must be included with the application.
The audit or accountant's review must cover the fiscal year ending
not more than 18 months prior to the January of the campaign year
in which the organization is applying for participation. The IRS Form
990 and audit or accountant's review must cover the same fiscal period.
[If the revenue and expenses on these two documents differ, the
reconciliation must be included in the IRS Form 990 itself or be included
in a letter of reconciliation submitted by the certified public accountant
who completed the audit or accountant's review.]
(c) If the revenue or expenses on the audit or accountant's review differ from those appearing in IRS Form 990, a reconciliation must be included in IRS Form 990 itself or be explained in a letter of reconciliation signed by the Executive Director and enclosed with the application.
(d) Should the accompanying reconciliation letter not clarify the differences to the satisfaction of the committee, the committee may require additional explanation from the applicant organization. The committee may also require additional explanation to be submitted in the form of a reconciliation letter signed by:
(1) the auditor or firm that conducted the audit;
(2) the accountant or firm that conducted the accountant's review; or
(3) the accountant or firm who prepared IRS Form 990.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on June 4, 2008.
TRD-200802886
Mike Esparza
Certifying Officer, State Policy Committee
State Employee Charitable Campaign
Earliest possible date of adoption: July 20, 2008
For further information, please call: (512) 475-0387