2017-07-17T10:58:05-05:00 2016-08-31 910189318 Moss Adams LLP 8750 N Central Expressway Ste 300 Dallas TX 75231 990 2015-09-01 742275519 Texas Association of School Boards Inc TEXA 5124670222 PO Box 400 Austin TX 787670400 James B Crow Executive Director 5124670222 2017-07-12 0 Pamela Alexanderson P01218925 9723874300 2017-07-12 2015 2021-01-29 14:40:06Z James B Crow 12007 Research Blvd Austin TX 78759 66525984 0 X www.tasb.org X 1999 TX TASB'S MISSION IS TO PROMOTE EDUCATIONAL EXCELLENCE FOR TEXAS SCHOOL CHILDREN THROUGH ADVOCACY, VISIONARY LEADERSHIP, AND HIGH QUALITY SERVICES TO SCHOOL DISTRICTS. TASB'S WIDE ARRAY OF SERVICES LESSENS THE BURDENS OF GOVERNMENT FOR SCHOOL DISTRICTS AND OTHER GOVERNMENTAL ENTITIES LOCATED IN TEXAS AND OTHER STATES. 43 43 563 51 1332875 552856 211269 173500 57362564 60839921 1322492 806874 3540553 3483747 62436878 65304042 7067 5555 0 0 44716067 45711203 0 0 26409 16715533 17509886 61438667 63226644 998211 2077398 60665684 63415200 20277311 20420719 40388373 42994481 X TASB'S MISSION IS TO PROMOTE EDUCATIONAL EXCELLENCE FOR TEXAS SCHOOL CHILDREN THROUGH ADVOCACY, VISIONARY LEADERSHIP, AND HIGH QUALITY SERVICES TO SCHOOL DISTRICTS. TASB'S WIDE ARRAY OF SERVICES LESSENS THE BURDENS OF GOVERNMENT FOR SCHOOL DISTRICTS AND OTHER GOVERNMENTALENTITIES LOCATED IN TEXAS AND OTHER STATES. 0 0 22293372 0 26078491 TASB RISK MANAGEMENT FUND - THROUGH A SERVICE AGREEMENT, TASB PROVIDES OVERALL MANAGEMENT AND PROGRAM ADMINISTRATION TO THE TASB RISK MANAGEMENT FUND (THE FUND), AN INTERGOVERNMENTAL RISK SHARING POOL FOR TEXAS SCHOOL DISTRICTS AND OTHER EDUCATIONAL-RELATED GOVERNMENTAL ENTITIES. THE FUND OFFERS WORKERS' COMPENSATION, UNEMPLOYMENT COMPENSATION, PROPERTY, SCHOOL LIABILITY, AUTO PHYSICAL DAMAGE, AND AUTO LIABILITY COVERAGE TO ITS MEMBERS. TASB'S PROGRAM ADMINISTRATION ACTIVITIES INCLUDE UNDERWRITING, MARKETING, CLAIMS ADMINISTRATION, LOSS PREVENTION, FINANCIAL MANAGEMENT AND OTHER MANAGEMENT AND OVERSIGHTSERVICES. THE COVERAGE PROVIDED BY THE FUND AND SERVICES PROVIDED BY TASB ON THE FUND'S BEHALF ARE DESIGNED TO REDUCE AND MINIMIZE THE RISK OF LOSS BY THE FUND'S MEMBERS THROUGH EFFECTIVE LOSS PREVENTIon, CLAIMS ADMINISTRATION AND OTHER ACTIVITIES, THEREBY LESSENING THE BURDENS OFGOVERNMENT. THE FUND PROVIDED COVERAGE TO OVER 1,000 MEMBERS DURING THE 2015-16 FISCAL YEAR. 4845836 0 3881763 TASB MEMBERSHIP PROVIDES TEXAS SCHOOL DISTRICTS AND OTHER GOVERNMENTAL ENTITIES WITH THE OPPORTUNITY TO PARTICIPATE IN A WIDE ARRAY OF PROGRAMS AND SERVICES WHICH ALLOWS THEM TO OPERATE MORE EFFICIENTLY AND EFFECTIVELY, THEREBY LESSENING THE BURDENS OF GOVERNMENT. MEMBERSHIP PROVIDES FOR MEMBER INVOLVEMENT AND THE EXCHANGE OF IDEAS FOR IMPROVINGTHE EDUCATIONAL ENVIRONMENT IN TEXAS FOR PUBLIC SCHOOLS. BASIC MEMBER SERVICES TO BOARDS OF TEXAS SCHOOL DISTRICTS AND OTHER EDUCATIONAL ENTITIES INCLUDE, BUT ARE NOT LIMITED TO: GOVERNMENTAL RELATIONS, REPRESENTING THE INTERESTS OF MEMBERS AT THE TEXAS LEGISLATURE;OPPORTUNITIES TO PARTICIPATE IN THE ANNUAL CONVENTION, WORKSHOPS, AND OTHER SEMINARS; BOARD TRAINING CREDIT TRACKING; AND A SUBSCRIPTION TO TASB'S FLAGSHIP PUBLICATION, TEXAS LONE STAR. IN ADDITION, TASB PROVIDES LEGAL ADVICE AND SUPPORT TO MEMBERS. TASB ATTORNEYS ARE KNOWLEDGEABLE ABOUT PUBLIC SCHOOL ISSUES AND PROVIDE COUNSEL TO SCHOOL BOARD TRUSTEES AND THEIR ADMINISTRATORS AND ATTORNEYS DAILY. THROUGH TASB MEMBERSHIP, OTHER SERVICES AND PROGRAMS ARE AVAILABLE TO MEMBERS ON A FEE-FOR-SERVICE BASIS. TASB SERVICES WERE MADE AVAILABLE TO 1,048 ACTIVE, 199 ASSOCIATE, AND 39 AFFILIATE MEMBERS IN 2016. 4229531 0 7405682 Buyboard - THROUGH A SERVICE AGREEMENT WITH THE LOCAL GOVERNMENT PURCHASING COOPERATIVE (PURCHASING COOPERATIVE), TASB PROVIDES SUPPORT, MAINTENANCE, AND ADMINISTRATIVE SERVICES FOR ELECTRONIC PURCHASES AND CONSOLIDATED BIDDING ON BEHALF OF GOVERNMENTAL ENTITIES, SUCH AS SCHOOL DISTRICTS, COUNTIES, MUNICIPALITIES, AND SPECIAL DISTRICTS. THE PURCHASING COOPERATIVE SERVED OVER 2,700 GOVERNMENTAL ENTITIES THAT PURCHASED $1.1 BILLION IN GOODS AND SERVICES DURING THE 2015-16 FISCAL YEAR. THROUGH A SERVICE AND LICENSE AGREEMENT AND A SALES AGREEMENT,TASB ALSO PROVIDES ADMINISTRATIVE AND SALES/MARKETING SUPPORT, RESPECTIVELY, TO THE NATIONAL PURCHASING COOPERATIVE (NATIONAL COOPERATIVE). THE PURCHASING COOPERATIVE AND NATIONAL COOPERATIVE ASSIST THEIR RESPECTIVE MEMBERS BY FACILITATING COMPLIANCE WITHGOVERNMENTAL PROCUREMENT REQUIREMENTS AND PROVIDING MEMBERS WITH ECONOMIES OF SCALE IN PURCHASING SERVICES AND PRODUCTS. AS A RESULT, SCHOOL DISTRICTS AND OTHER GOVERNMENTAL ENTITIES CAN OPERATE MORE EFFICIENTLY AND EFFECTIVELY, THEREBY LESSENING THE BURDENS OFGOVERNMENT. TASB HAS ALSO MADE ONLINE COOPERATIVE PURCHASING AVAILABLE TO NON-PROFIT ORGANIZATIONS. REVENUE GENERATED FROM THESE NON-PROFITS HAS BEEN REPORTED AS UNRELATED BUSINESS INCOME ON THIS FORM 990, AND THE FORM 990-T HAS BEEN FILED AS REQUIRED. ALL THREE PURCHASING INSTRUMENTALITIES OPERATE AS, AND ARE KNOWN AS, BUYBOARD, A TASBTRADEMARKED NAME. 20336839 5555 21486398 I. LEADERSHIP TEAM SERVICEs IS COMMITTED TO ENHANCING THE EFFECTIVENESS OF TEXAS PUBLIC SCHOOL LEADERSHIP TEAMS THROUGH TRAINING, PUBLICATIONS, PLANNING AND CONSULTING, AND FACILITATION SERVICES CREATED SPECIFICALLY FOR SCHOOL BOARDS. TRAINING OPPORTUNITIES INCLUDE IN-DISTRICT TRAINING, TEAM BUILDING SESSIONS, LEADERSHIP TASB (INCLUDING SUBSIDIZED TRAINING FOR FIVE PARTICIPANTS), TASB ISD AND THE ONLINE LEARNING CENTER. MAJOR CONFERENCES HELD INCLUDE THE ANNUAL CONVENTION, HOSTED JOINTLY WITH ANOTHER NON-PROFIT ASSOCIATION, AND SUMMER LEADERSHIP INSTITUTE. THESE SERVICES, PRODUCTS, AND TRAINING OPPORTUNITIES SUPPORT PUBLIC SCHOOLS AND RELATED ENTITIES, AND LESSEN THE BURDENS OF GOVERNMENT. DURING FISCAL YEAR 2015-16, LEADERSHIP TEAM SERVICES PERFORMED 142 CONSULTING ENGAGEMENTS, SOLD 1,479 PUBLICATIONS, AND PROVIDED TRAINING TO 6,993 CONFERENCE ATTENDEeS. II. FIRST PUBLIC, LLC (FIRST PUBLIC) - DIRECTLY AND THROUGH A SERVICE AGREEMENT WITH LONE STAR INVESTMENT POOL, FIRST PUBLIC PROVIDES INVESTMENT SERVICES TO LOCAL GOVERNMENTS, SUCH AS SCHOOL DISTRICTS, CITIES, COUNTIES, AS WELL AS OTHER GOVERNMENTAL ENTITIES. FIRST PUBLICASSISTS THESE ENTITIES IN MANAGING AND PLANNING THEIR INVESTMENT PROGRAMS. THESE SERVICES HELP GOVERNMENTAL ENTITIES REDUCE THE TIME AND EXPENSE OF MANAGING THEIR INVESTMENTS, AND PROVIDE FOR INVESTMENT DIVERSIFICATION. THESE SERVICES ENABLE GOVERNMENTAL ENTITIES TO OPERATEMORE EFFICIENTLY AND EFFECTIVELY, THEREBY LESSENING THE BURDENS OF GOVERNMENT. DURING THE 2015-16 FISCAL YEAR, THERE WAS AN AVERAGE OF 636 PARTICIPATING LOCAL GOVERNMENTS IN THE LONE STAR INVESTMENT POOL. (SEE PART IV LINE 33 STATEMENT IN SCHEDULE O.)THROUGH A SERVICE AGREEMENT, FIRST PUBLIC ALSO PROVIDES OVERALL MANAGEMENT AND PROGRAM ADMINISTRATION TO THE TASB BENEFITS COOPERATIVE (BENEFITS COOPERATIVE). THE BENEFITS COOPERATIVE WAS CREATED IN AN EFFORT TO ASSIST TEXAS SCHOOL DISTRICTS WITH ATTRACTING AND RETAINING GOOD EMPLOYEES BY PROVIDING VALUABLE SUPPLEMENTAL COVERAGE AND OFFERING PERSONAL INSURANCE LINES TO EMPLOYEES, THEREBY LESSENING THE BURDENS OF GOVERNMENT. THE BENEFITS COOPERATIVE IS ORGANIZED UNDER THE TEXAS INTERLOCAL COOPERATION ACT. FIRST PUBLIC'S PROGRAM ADMINISTRATION ACTIVITIES INCLUDE, BUT ARE NOT LIMITED TO, PROCUREMENT AND SELECTION OF SUPPLEMENTAL BENEFITS PROVIDERS, AND MARKETING, PARTICIPANT ENROLLMENT, AND IMPLEMENTATION OF BENEFITS COOPERATIVE INITIATIVES. THERE WERE 38 PARTICIPATING TEXAS SCHOOL DISTRICTS IN THE BENEFITS COOPERATIVE DURING FISCAL YEAR 2015-16.III. FACILITY SERVICES PROVIDES MEMBERS WITH ASSISTANCE ON REGULATORY COMPLIANCE ISSUES, ACCESS TO PROFESSIONAL TRAINING, AND ACCESS TO SERVICES SUCH AS ASBESTOS AND INTEGRATED PEST MANAGEMENT, INDOOR AIR QUALITY, COMPLIANCE REVIEWS, MAINTENANCE AND OPERATIONS STAFFING ANALYSIS, BOND ELECTION ASSISTANCE, FACILITY ASSESSMENTS, AND LONG-RANGE FACILITY PLANNING. IN ADDITION, THROUGH TASB'S CONSTRUCTION PROGRAM MANAGEMENT SERVICE, FACILITY SERVICES WORKS WITH EXTERNAL ORGANIZATIONS TO PROVIDE COMPREHENSIVE ASSISTANCE THROUGH ALL PHASES OF THE CONSTRUCTION PROJECT PROCESS. THESE SERVICES ALLOW PARTICIPANTS TO OPERATE MORE EFFICIENTLY AND EFFECTIVELY, THEREBY LESSENING THE BURDENS OF GOVERNMENT. FACILITY SERVICES HAS ALSO MADE SUBSCRIPTION SERVICES AVAILABLE TO OTHER NON-PROFIT ORGANIZATIONS. REVENUE GENERATED FROM THESE ORGANIZATIONS HAS BEEN REPORTED AS UNRELATED BUSINESS INCOME ON THIS FORM 990, AND THE FORM 990-T HAS BEEN FILED AS REQUIRED. DURING THE 2015-16 FISCAL YEAR, FACILITY SERVICES HAD 624 PARTICIPANTS AND PERFORMED 455 CONSULTING ENGAGEMENTS.IV. HR SERVICES PARTICIPANTS HAVE ACCESS TO PUBLICATIONS, TRAINING, AND EXPERT CONSULTING SERVICES IN THE AREA OF HUMAN RESOURCE MANAGEMENT. SERVICES INCLUDE SALARY SURVEY REPORTS, IN-DISTRICT TRAINING, MODEL JOB DESCRIPTIONS, MODEL EMPLOYEE HANDBOOKS, AND AN HR LIBRARY. THESESERVICES AND PRODUCTS SUPPORT PUBLIC SCHOOLS AND RELATED ENTITIES, AND LESSEN THE BURDENS OF GOVERNMENT. DURING THE 2015-16 FISCAL YEAR, HR SERVICES HAD 993 PARTICIPANTS, PERFORMED 176 CONSULTING ENGAGEMENTS, AND SOLD OVER 6,400 PUBLICATIONS.V. POLICY SERVICE PROVIDES SUBSCRIBERS WITH SERVICES AND RESOURCES THAT HELP SCHOOL DISTRICT TRUSTEES AND SUPERINTENDENTS MASTER THEIR RESPECTIVE ROLES IN PROVIDING EXCELLENT LOCAL GOVERNANCE. SERVICES INCLUDE LEGAL REFERENCE POLICIES AND UPDATES, LOCALIZED POLICY MANUALS,POLICY REVIEW SESSIONS, AND ACCESS TO AN INTERNET-BASED TOOL FOR HOSTING DISTRICT POLICIES. THESE SERVICES SUPPORT PUBLIC SCHOOLS AND RELATED ENTITIES, AND LESSEN THE BURDENS OF GOVERNMENT. POLICY SERVICE HAS ALSO MADE POLICY UPDATING SERVICES AVAILABLE TO OTHER NON-PROFITORGANIZATIONS. REVENUE GENERATED FROM THESE ORGANIZATIONS HAS BEEN REPORTED AS UNRELATED BUSINESS INCOME ON THIS FORM 990, AND THE FORM 990-T HAS BEEN FILED AS REQUIRED. THERE WERE APPROXIMATELY 1,100 SUBSCRIBERS TO POLICY SERVICE DURING FISCAL YEAR 2015-16.VI. ENERGY SERVICES PROVIDES TEXAS SCHOOL DISTRICTS AND LOCAL GOVERNMENTAL ENTITIES WITH ASSISTANCE ON ENERGY EFFICIENCY AND CONSERVATION PROJECTS. ENERGY SERVICES PROVIDES DIRECT CONSULTATION AND SERVICES, AS WELL AS COLLABORATING WITH EXTERNAL ORGANIZATIONS TO OFFERCOMPREHENSIVE, CUSTOMIZED ENERGY MANAGEMENT SOLUTIONS. THE ENERGY SERVICES' EFFICIENT BUILDINGS PROGRAM SERVES PARTICIPANTS THROUGH ENERGY UPGRADES AND FACILITY IMPROVEMENTS THAT INCREASE OPERATIONAL EFFICIENCY AND EDUCATIONAL EFFECTIVENESS. DURING THE 2015-16 FISCALYEAR, ENERGY SERVICES PERFORMED 24 CONSULTING ENGAGEMENTS.PROGRAM REVENUE ALSO INCLUDES ADMINISTRATIVE FEES EARNED THROUGH A SERVICE AGREEMENT BETWEEN TASB AND THE TASB ENERGY COOPERATIVE (ENERGY COOPERATIVE). THE ENERGY COOPERATIVE OFFERS ENERGY AGGREGATION SERVICES THAT SATISFY COMPETITIVE PROCUREMENT REQUIREMENTS FOR SCHOOL DISTRICTS AND OTHER GOVERNMENTAL ENTITIES, AND ALLOWS THEM TO OBTAIN A COMPETITIVE RATE. AS A RESULT, SCHOOL DISTRICTS AND OTHER GOVERNMENTAL ENTITIES CAN OPERATE MORE EFFICIENTLY AND EFFECTIVELY, THEREBY LESSENING THE BURDENS OF GOVERNMENT. THERE WERE 204 ENTITIES PARTICIPATING IN ELECTRICITY AGGREGATION POOLS DURING FISCAL YEAR 2015-16, WITH OVER 1.2 BILLION KILOWATT-HOURS OF ELECTRICITY PURCHASED. THE ENERGY COOPERATIVE ALSO OFFERS A TRANSPORTATION FUEL PROGRAM THAT PROVIDES FIXED-RATE PRICING FOR FUEL COMMODITIES, INCLUDING GASOLINE, DIESEL, AND PROPANE, OVER PRE-SET PERIODS OF TIME, OR TERMS. THERE WERE 89 ENTITIES PARTICIPATING IN THE FUEL PROGRAM DURING FISCAL YEAR 2015-16, WITH 9.2 MILLION GALLONS OF TRANSPORTATION FUEL DELIVERED. VII. TASB'S SPECIAL EDUCATION SOLUTIONS PROGRAM HELPS TEXAS SCHOOL DISTRICTS SEEK REIMBURSEMENT FOR SERVICES ELIGIBLE UNDER THE SCHOOL HEALTH AND RELATED SERVICES PROGRAM, THEREBY LESSENING THE BURDENS OF GOVERNMENT. PARTICIPATING DISTRICTS HAVE THE ABILITY TO FILE MEDICAID CLAIMS ELECTRONICALLY, UTILIZING SMART (SITE-BASED MEDICAID ADMINISTRATION, REIMBURSEMENT AND TRACKING), THAT ARE IN COMPLIANCE WITH GOVERNMENTAL REQUIREMENTS. ELECTRONIC FILING IS COST EFFECTIVE AND IS AN EFFICIENT WAY TO MAXIMIZE DISTRICT REIMBURSEMENTS WHILE MAINTAINING CONTROL OVER MEDICAID CLAIMS. DURING FISCAL YEAR 2015-16, THERE WERE 97 PARTICIPANTS IN THE PROGRAM AND TASB PROCESSED AND SUBMITTED APPROXIMATELY $178 MILLION IN MEDICAID CLAIMS ONTHEIR BEHALF. VIII. LEGAL SERVICES- IN ADDITION TO SUPPORTING MEMBERSHIP ACTIVITIES, LEGAL SERVICES OFFERS IN-SERVICE TRAINING, SEMINARS, PUBLICATIONS, AND VIDEOS ON LEGAL TOPICS FOR EDUCATIONAL AND INFORMATIONAL PURPOSES. TRAINING ATTENDANCE AND PUBLICATIONS/VIDEOS SOLD TOTALED MORE THAN 530 AND 380 RESPECTIVELY, DURING FISCAL YEAR 2015-16. REVENUE GENERATED FROM THE SALE OF VIDEOS TO OTHER NON-PROFIT ORGANIZATIONS HAS BEEN REPORTED AS UNRELATED BUSINESS INCOME ON THIS FORM 990, AND THE FORM 990-T HAS BEEN FILED AS REQUIRED. UNDER A SERVICE AGREEMENT WITH THE TASB LEGAL ASSISTANCE FUND (LAF), A 501 (C)(4) TAX EXEMPT ENTITY, TASB PROVIDES ADMINISTRATIVE SERVICES TO LAF, PRIMARILY THROUGH THE LEGAL SERVICES DIVISION. LAF'S MISSION IS TO ASSIST PARTICIPATING TEXAS SCHOOL DISTRICTS BY ADVOCATING ON ISSUES OR CAUSES THAT GENERALLY AFFECT, OR WILL AFFECT, THE PUBLIC SCHOOLS OF THE STATE OF TEXAS. AS OF AUGUST 31, 2016, LAF HAD 762 MEMBERS. THESE SERVICES SUPPORT PUBLIC SCHOOLS AND RELATED ENTITIES, AND LESSEN THE BURDENS OFGOVERNMENT. IX. BOARDBOOK IS A WEB-BASED SOFTWARE APPLICATION THAT HELPS SCHOOL DISTRICTS AND OTHER SUBSCRIBERS ASSEMBLE BOARD MEETING PACKETS IN A CONSISTENT, EFFICIENT MANNER, AND PROVIDES FOR PAPERLESS MEETINGS. ASSEMBLED MATERIALS ARE AVAILABLE VIA THE WEB AND CAN INCLUDE LINKS TOOTHER DOCUMENTS. THE APPLICATION ALLOWS FOR SEARCHES OF ARCHIVED BOARD MEETING PACKETS AND MINUTES. THE PUBLIC CAN VIEW POSTED MEETING NOTICES, AGENDA PACKETS, AND MINUTES ON A DISTRICT'S WEBSITE. BY USING BOARDBOOK, DISTRICTS ARE ABLE TO OPERATE MORE EFFICIENTLY ANDEFFECTIVELY, THEREBY LESSENING THE BURDENs OF GOVERNMENT. THERE WERE MORE THAN 690 TEXAS AND 590 OUT-OF-STATE GOVERNMENTAL ENTITIES SUBSCRIBING TO BOARDBOOK DURING FISCAL YEAR 2015-16. TASB HAS ALSO MADE BOARDBOOK AVAILABLE TO NON-PROFIT AND OTHER PRIVATE ORGANIZATIONS INSIDE AND OUTSIDE OF THE STATE OF TEXAS. REVENUE GENERATED FROM THESE ORGANIZATIONS HAS BEEN REPORTED AS UNRELATED BUSINESS INCOME ON THIS FORM 990, AND THE FORM 990-T HAS BEEN FILED AS REQUIRED.X. EXECUTIVE SEARCH SERVICES (ESS) IS A CONSULTING SERVICE DEDICATED TO HELP DISTRICTS FIND A CHIEF EXECUTIVE OFFICER OR OTHER KEY ADMINISTRATOR. ESS OFFERS ALLOCATION-ONLY SEARCHES OR COMPLETE SEARCHES. COMPLETE SEARCHES INCLUDE ASSISTANCE AT EACH STAGE OF THE PROCESS, FROM ASSESSMENT AND PLANNING TO OFFERING SCREENING ASSISTANCE FOR DECISION MAKERS. BY UTILIZING ESS SERVICES, DISTRICTS ARE ABLE TO OPERATE MORE EFFICIENTLY AND EFFECTIVELY, THEREBY LESSENING THE BURDENS OF GOVERNMENT. ESS CONDUCTED 20 SEARCHES DURING FISCAL YEAR 2015-16.XI. OTHER REVENUE INCLUDES, BUT IS NOT LIMITED TO, REVENUE GENERATED THROUGH LEGISLATIVE UPDATE SEMINARS, SUPERINTENDENT SECRETARY CONFERENCEs, SALES Of VARIOUS TASB PRODUCTS AND PUBLICATIONS, AND COMMUNITY SURVEY SERVICES. THESE SERVICES AND PRODUCTS SUPPORT PUBLIC SCHOOLS AND RELATED ENTITIES, THEREBY LESSENING THE BURDENS OF GOVERNMENT. REVENUE GENERATED FROM THE SALE OF CERTAIN ITEMS AND FOR THE PROVISION OF CERTAIN SERVICES TO OTHER NON-PROFIT ORGANIZATIONS HAS BEEN REPORTED AS UNRELATED BUSINESS INCOME ON THIS FORM 990, AND THE FORM 990-T HAS BEEN FILED AS REQUIRED. 20336839 5555 21486398 51705578 1 1 0 1 0 0 0 0 0 0 1 0 0 0 0 1 0 1 0 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 113 0 1 563 1 1 1 0 0 0 0 1 1 0 0 0 0 X 43 43 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X James B Crow Executive Director 5124670222 12007 Research Blvd Austin TX 787592439 X Bret Begert - Oct 2015 President 3.00 X X 0 0 0 Charles Stafford - Oct 2015 President Elect 3.00 X X 0 0 0 Faye Beaulieu - Oct 2015 Immediate Past President 1.00 X X 780 0 0 Andra Self - Oct 2015 Immediate Past President 3.00 X X 0 0 0 Teresa Flores First Vice President 3.00 X X 0 0 0 Joe Adams - Oct 2015 Second Vice President 3.00 X X 0 0 0 Karen Freeman Secretary - Treasurer 3.00 X X 0 0 0 Kay Alley Director 1.00 X 0 0 0 Rose Avalos Director 1.00 X 0 0 0 Ted Beard III Director 1.00 X 0 0 0 Ann Calahan Director 1.00 X 0 0 0 Gloria Casas - Oct 2015 Director 1.00 X 720 0 0 Victor Contreras Director 1.00 X 0 0 0 Bob Covey Director 1.00 X 0 0 0 Ronald Crier Director 1.00 X 584 0 0 Charles Cunningham Director 1.00 X 0 0 0 James De Garavilla Director 1.00 X 0 0 0 Henry Dibrell Director 1.00 X 0 0 0 Jason Dohnalik Director 1.00 X 0 0 0 Ruben Escobar Director voting ex officio 1.00 X 0 0 0 Dori Fenebock Director 1.00 X 0 0 0 Gilbert Flores Director 1.00 X 0 0 0 Donald Gant Director 1.00 X 0 0 0 Debbie Gillespie Director 1.00 X 0 0 0 Linda Gooch Director 1.00 X 0 0 0 John Green Director 1.00 X 0 0 0 Bowie Hogg Director 1.00 X 0 0 0 Sandy Hughey Director 1.00 X 0 0 0 Maria Leal Director 1.00 X 540 0 0 Lee Lentz-Edwards Director 1.00 X 0 0 0 Jayme Mathias Director 1.00 X 0 0 0 Benny May Director 1.00 X 0 0 0 Raymond Meza director 1.00 X 0 0 0 Mike Morath Director 1.00 X 0 0 0 Dan Micciche Director 1.00 X 0 0 0 Christene Moss Director 1.00 X 0 0 0 Vernagene Mott Director 1.00 X 0 0 0 Steve Overton - Oct 2015 Director voting ex officio 1.00 X 0 0 0 Bob Payton Director 1.00 X 0 0 0 Georgan Reitmeier Director 1.00 X 0 0 0 Pamela Remmers - Oct 2015 Director 1.00 X 0 0 0 Jim Rice Director 1.00 X 0 0 0 Bobby Rigues Director 1.00 X 0 0 0 Armando Rodriguez Director 1.00 X 0 0 0 Rolinda Schmidt Director 1.00 X 0 0 0 Deborah Seabron Director 1.00 X 0 0 0 Robert Sheppard Director 1.00 X 0 0 0 Rhonda Skillern-Jones Director 1.00 X 0 0 0 Cindy Spanel Director 1.00 X 0 0 0 Mildred Watkins Director 1.00 X 0 0 0 Greg Welch Director 1.00 X 0 0 0 James Crow Executive Director 40.00 X 357855 0 77987 Steven MC Arthur Chief Financial Officer 40.00 X 207522 0 43614 Paul Szaniszlo Assoc Executive Director 40.00 X 524677 0 56934 Dubravka Romano Assoc Executive Director 40.00 X 300393 0 51695 Sedora Jefferson Assoc Executive Director 40.00 X 230160 0 35910 Grover Campbell Assoc Executive Director 40.00 X 228213 0 21232 Nancy Cotton Assoc Executive Director 40.00 X 215955 0 34486 Robert Duron Assoc Executive Director 40.00 X 192060 0 35250 Karen Strong Assoc Executive Director 40.00 X 159596 0 34084 William Mastrodicasa First Public Chief Operating Officer 40.00 X 209484 0 72729 Steve Orta First Public Sales Director 40.00 X 185155 0 37202 Richard Turner DIRECTOR BUSINESS SRVCS SALES/MKTG 40.00 X 172165 0 30153 Brian Buck Medical Director 24.00 X 154331 0 44668 Trent Toon Director of Operations First Public 40.00 X 166839 0 34318 3307029 0 610262 68 0 1 0 Databank IMX LLC 2912 Momentum Place Chicago IL 60689 Computer Program/Consulting 232371 Future Point of View 5904 Lakewood Ridge Road Edmond OK 73013 Technology Consulting 229904 Integrated Human Capital 1100 NW Loop 410 Ste 102 San Antonio TX 78213 Agency Temporary Service 213957 Clear Measure Inc 11044 Research Blvd Ste B-220 Austin TX 78759 Software Development 172464 Global Maintenance Services 2211 Denton Drive STE A Austin TX 78758 Janitorial Services 165134 9 X 1821 171679 173500 TASB Risk MGMT Fund 524292 26078491 26078491 Buyboard 561000 7567809 7405682 162127 First Public 523000 4403380 4403380 Policy Service 900099 4244074 4094074 150000 TASB Membership 900099 3881763 3881763 14664404 12988944 973166 702294 60839921 1121229 1121229 2819779 2819779 488833 371742 117091 117091 117091 497188 31575 457752 385366 39436 -353791 -314355 -314355 0 1821 4844 -4844 -4844 3115 2238 877 877 Child Care Services 624410 504139 504139 advertising 541800 46705 46705 550844 65304042 58852334 1332875 4945333 5555 5555 2549333 1018423 1530910 32882135 27863845 4998051 20239 2603878 2206381 395767 1730 5110272 4330452 776771 3049 2565585 2087040 477154 1391 107223 11877 95346 146131 146131 135150 135150 9524 9524 1489931 1326439 163492 590051 500309 89742 758938 644999 113939 2320814 1967835 352979 205547 205547 2091638 1773515 318123 2339618 1861504 478114 3203 3203 2486022 1967733 518289 1372 1372 2604929 2208739 396190 314388 314388 Maintenance & repairs 394871 334814 60057 Income Taxes 234661 234661 Temporary Assistance 232842 197428 35414 Printing 210847 184726 26121 832186 635403 196783 63226644 51705578 11494657 26409 650 650 4632934 6013609 3085102 3361016 48729 31881 1504738 1623671 44123387 20651135 24110459 23472252 27283072 28912121 60665684 63415200 6264948 7160340 3164554 3244223 10847809 10016156 20277311 20420719 X 40388373 42994481 40388373 42994481 60665684 63415200 2077398 528710 0 X X 0 1 X 1 0 X 190628 194478 246147 211269 173500 1016022 44465119 46814031 51882731 55298257 58852334 257312472 470396 462307 1379336 1408852 1206433 4927324 45126143 47470816 53508214 56918378 60232267 263255818 0 6843953 7394450 8048241 9990491 10820595 43097730 6843953 7394450 8048241 9990491 10820595 43097730 220158088 3745791 3789102 3835683 4216864 4429841 20017281 84907 46536 446497 600472 553856 1732268 3830698 3835638 4282180 4817336 4983697 21749549 2924 4537 12363 858 20682 48959765 51310991 57802757 61736572 65215964 285026049 0.77240 0.77600 0.07630 0.07660 X Schedule A, Part III, Line 12, Explanation of Other Income: other misc - 2011 Amount: $ 2,924. 2012 Amount: $ 4,537. 2013 Amount: $ 12,363. 2014 Amount: $ 858. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 0 1 38225 1 6177 0 1 373941 1 178733 0 597076 0 Part II-B, Line 1, Lobbying activities: Lobbying activities consist of communicating the needs of school districts to legislative and executive officials and staff, and communicating with the membership to encourage them to influence legislation. Since staff involved in lobbying activities is also involved in non-lobbying activities, costs have been allocated to lobbying activities based upon a systematic application of estimated percentages of involvement in lobbying, in both legislative and non-legislative periods throughout the year, as well as specific identification of some of the costs. No amounts are expended for political campaign activity. 2045650 2045650 20731719 5691567 15040152 2128819 1756713 372106 19217199 13202855 6014344 23472252 X 66565367 528710 732615 1261325 65304042 0 65304042 63959259 732615 732615 63226644 0 63226644 Part X, Line 2: Based upon a determination letter obtained from the Internal Revenue Service (IRS), TASB claims exemption from income taxes under Section 501(c)(3) of the Internal Revenue Code. TASB continues to operate in accordance with its original exempt purpose. As TASB considers new programs, activities, and markets, each opportunity is evaluated to assure it is in keeping with that original exempt purpose. Annually, TASB files a Form 990 Return of Organization Exempt from Income Tax and a Form 990-T Exempt Organization Business Income Tax Return, in the United States Federal jurisdiction. First Public is included in the consolidated Federal income tax return filed by TASB. New programs created and activities conducted are disclosed to the IRS on the Form 990. In addition, unrelated business income derived from TASB activities is disclosed to the IRS on the Form 990-T, as required. TASB services provided that generated unrelated business income during the years ended August 31, 2016 and 2015, include, but are not limited to, cooperative purchasing to private nonprofit entities; online distribution and management of meeting materials to non-governmental subscribers; and other annual service subscriptions from non-governmental entities. For the year ended August 31, 2015, TASB services that generated unrelated business income also included affiliate membership fees from Texas charter schools. Subsequent to August 31, 2015, as a result of action taken by the Texas Legislature, income received from the provision of services to Texas charter schools is no longer considered unrelated business income because charter schools are considered local governmental entities under Texas law. TASB recorded $234,661 and $114,324 in income tax expense on net unrelated business income for the years ended August 31, 2016 and 2015, respectively, which is included with Other operating expenses in the Statements of Activities. TASB follows Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 740-10, Accounting for Income Tax Uncertainty. ASC 740-10 prescribes a recognition threshold and measurement process for accounting for uncertain tax positions and also provides guidance on various related matters such as de-recognition, interest, penalties, and disclosures required. TASB does not have any entity level uncertain tax positions in connection with these financial statements. Footnote: While TASB recorded an estimated tax expense of $234,661 for the 2015-16 fiscal year, actual payments made to the IRS totaled $197,522. Part XI, Line 2d - Other Adjustments: Cost of goods sold on logo items and plaques 2,238. Expenses Associated with the TASB Building Space Leased to Tenants 371,742. NET LOSS ON SALE/DISPOSAL OF NON-INVENTORY ASSETS 353,791. Allocation of fundraising event expenses 4,844. Part XII, Line 2d - Other Adjustments: Cost of goods sold on logo items and plaques 2,238. Expenses associated with the TASB building space leased to tenants 371,742. NET LOSS ON SALE/DISPOSAL OF NON-INVENTORY ASSETS 353,791. Allocation of fundraising event expenses 4,844. Europe 0 0 Program See Sch F, Part V 9934 North America 0 0 Progam See Sch F, Part V 6000 0 0 0 0 0 0 15934 0 15934 0 0 0 0 0 0 Form 990, Schedule F, Part I TASB serves as program administrator for the TASB Risk Management Fund (Fund), an intergovernmental risk-sharing governmental pool. Administrative services include the search, evaluation, and selection of insurance-related services and products on behalf of the Fund. Expenses reported in Schedule F Part I, Line 3, consist of certain TASB staff's travel to London for meetings with insurance brokers regarding procurement of supplemental coverage to assure the pool's risks are managed appropriately. TASB does not conduct other business, hold offices, or provide services in foreign regions, except having two BoardBook subscriptions in Canada. X 1 1 X X X X 0 1 0 0 0 1 0 1 0 James Crow Executive Director 289629 0 21198 0 47028 0 56500 0 21487 0 435842 0 0 0 Steven MC Arthur Chief Financial Officer 161103 0 13136 0 33283 0 17921 0 25693 0 251136 0 0 0 Paul Szaniszlo Assoc Executive Director 266931 0 221826 0 35920 0 26500 0 30434 0 581611 0 90000 0 Dubravka Romano Assoc Executive Director 245640 0 17138 0 37615 0 39375 0 12320 0 352088 0 0 0 Sedora Jefferson Assoc Executive Director 184873 0 12136 0 33151 0 20221 0 15689 0 266070 0 0 0 Grover Campbell Assoc Executive Director 196650 0 10136 0 21427 0 20700 0 532 0 249445 0 0 0 Nancy Cotton Assoc Executive Director 169809 0 13136 0 33010 0 19750 0 14736 0 250441 0 0 0 Robert Duron Assoc Executive Director 167201 0 6136 0 18723 0 16638 0 18612 0 227310 0 0 0 Karen Strong Assoc Executive Director 132160 0 6136 0 21300 0 15000 0 19084 0 193680 0 0 0 William Mastrodicasa First Public Chief Operating Officer 187072 0 11136 0 11276 0 45701 0 27028 0 282213 0 0 0 Steve Orta First Public Sales Director 174021 0 136 0 10998 0 18859 0 18343 0 222357 0 0 0 Richard Turner DIRECTOR BUSINESS SRVCS SALES/MKTG 105224 0 57386 0 9555 0 11450 0 18703 0 202318 0 0 0 Brian Buck Medical Director 142932 0 11140 0 259 0 15095 0 29573 0 198999 0 0 0 Trent Toon Director of Operations First Public 149203 0 8136 0 9500 0 16000 0 18318 0 201157 0 0 0 Part I, Line 1a REIMBURSEMENT FOR HEALTH CLUB DUES IS RECEIVED BY ONE EMPLOYEE, JAMES CROW. REIMBURSEMENT IS TREATED AS TAXABLE INCOME. REIMBURSEMENT FOR SOCIAL CLUB DUES IS RECEIVED BY TWO EMPLOYEES, JAMES CROW AND GROVER CAMPBELL. REIMBURSEMENT IS TREATED AS TAXABLE INCOME. HEALTH AND SOCIAL CLUB DUES ARE PROVIDED FOR IN THE EXECUTIVE DIRECTOR'S EMPLOYMENT AGREEMENT, WHICH IS APPROVED BY THE TASB BOARD OF DIRECTORS. REIMBURSEMENT OF SOCIAL CLUB DUES TO THE OTHER EMPLOYEE IS AUTHORIZED BY THE EXECUTIVE DIRECTOR BASED ON BUSINESS NECESSITY. Part I, Line 4b Four employees participate in the 457(f) plan. In 2015, there were three contirbutions to the plan for the following people: James Crow ($30,000), William Mastrodicasa ($25,000), and Dubravka Romano ($15,000). Paul Szaniszlo did not have a contribution made to the plan in 2015. Part I, Line 6 One listed employee is affected by a commission plan that uses net earnings generated from the applicable program to determine commission amounts paid. The plan has established annual net earnings benchmarks that must be exceeded in order for the employee to be awarded a bonus. Bonuses are calculated on amounts in excess of the established benchmark for that particular program. The plan includes a maximum percentage of the employee's annual base salary that can be awarded as a bonus. The compensation plan for the TASB Executive Director includes a bonus plan that in part, considers net earnings of the organization. The incentive plan, approved by the TASB Board of Directors, consists of five different performance metrics, including fiscal-year net earnings of the organization. Each of the five metrics is evaluated individually, using criteria established in the incentive plan, and contains a weighting factor. A target and maximum bonus amount exists for each performance metric. Part I, Line 7 TASB's staff bonuses consist of Extraordinary Contribution Awards (ECAs) and Organizational Performance Awards (OPAs). ECAs, which are merit based, are designed to motivate and retain employees who provide exemplary performance on behalf of the Association. OPAs are designed to recognize all staff for their efforts in contributing to a successful year for the organization. These bonus programs, which may be administered annually, are discretionary and board approved. TASB staff bonus programs are provided at the discretion of the Association. TASB reserves the right to administer, modify, or terminate the bonus programs with or without notice to staff. Form 990, Part I, Box L- Year of Formation: Texas Association of School Boards was initially formed as an unincorporated association in 1949. In 1999, Texas Association of School Boards merged with its related non-profit corporate entity becoming the Texas Association of School Boards, Inc. (TASB). Form 990, Part IV, Line 33: FIRST PUBLIC, A REGISTERED BROKER-DEALER AND LICENSED INSURANCE AGENCY, IS A WHOLLY OWNED SUBSIDIARY OF TASB AND A DISREGARDED ENTITY FOR FEDERAL TAX PURPOSES. FIRST PUBLIC IS MANAGER-MANAGED. THE MANAGING DIRECTOR IS APPOINTED BY THE TASB BOARD'S FIRST PUBLIC GOVERNANCE COMMITTEE. ACTIVITIES OF FIRST PUBLIC AND APPLICABLE DISCLOSURES ARE CONSOLIDATED WITH TASB IN THIS 2015 IRS FORM 990. Form 990, Part VI, Section A, line 1 The First Public Governance Committee is a committee of the TASB Board, composed of the Board officers and executive director as voting members. This Committee represents the interests of the TASB Board as it relates to First Public, an entity whose sole member is TASB (and a disregarded entity for federal tax purposes). Pursuant to TASB Board policy, this Committee has the authority to take all action related to TASB as the sole member of First Public, including the hiring and firing of First Public's managing director. TASB bylaws provide that the Board shall consist of 44 members, and that each vacancy will reduce full Board membership by one until the vacancy is filled. Because of one unfilled vacancy, Board membership consisted of 43 members as of August 31, 2016. Form 990, Part VI, Section A, line 6 TASB HAS THREE CLASSES OF MEMBERS: ACTIVE, ASSOCIATE AND AFFILIATE. ACTIVE IS THE PRIMARY MEMBERSHIP CLASS AND THE ONLY CLASS WITH GOVERNANCE RIGHTS. ACTIVE MEMBERS ARE BOARDS OF INDEPENDENT OR COMMON SCHOOL DISTRICTS, COUNTY BOARDS OF EDUCATION, AND REGIONAL EDUCATION SERVICE CENTERS WITHIN THE STATE OF TEXAS THAT PAY MEMBERSHIP FEES. THE MEMBERSHIP YEAR OF TASB IS JANUARY 1 THROUGH DECEMBER 31. FOR 2016, ACTIVE MEMBER FEES WERE CHARGED AT A MINIMUM OF $800 AND A MAXIMUM OF $11,000, AND WERE DETERMINED BASED ON THE ENTITY'S PRIOR YEAR AUDITED TOTAL OF OPERATING EXPENSES. MEMBERSHIP IN TASB IS VOLUNTARY AND GENERALLY PROVIDES THE FOLLOWING: NONPARTISAN ADVOCACY AT THE STATE AND NATIONAL LEVEL, LEGAL ASSISTANCE FROM KNOWLEDGEABLE ATTORNEYS, INFORMATIONAL RESOURCES, BOARD TRAINING (INCLUDING TRACKING CONTINUING EDUCATION CREDITS), SUBSCRIPTION TO TASB'S MONTHLY PERIODICAL - TEXAS LONE STAR - AND OTHER PUBLICATIONS, AND MEMBER RATES AT CONFERENCES AND WORKSHOPS. MEMBERSHIP PROVIDES OPPORTUNITIES TO SUBSCRIBE TO OTHER TASB PROGRAMS AND SERVICES ON AN ADDITIONAL FEE BASIS. Form 990, Part VI, Section A, line 7a Members or others who may elect one or more members of the governing body: Active TASB members elect the TASB Board of Directors and Officers. The President of the Texas Association of Education Service Centers (TAESC) also has a voting ex-officio position on the TASB Board by virtue of the TASB bylaws. Form 990, Part VI, Section A, line 7b Decisions of the governing body subject to approval by members or others: The TASB Board recommends bylaw amendments, mission statement amendments, beliefs, the Advocacy Agenda (which consists of cornerstone principles, priorities, and resolutions), and membership fees for Active members for final adoption by the membership through the TASB Delegate Assembly. (The Delegate Assembly is comprised of representatives designated by Active members each year and serves as TASB's general governing body.) Form 990, part vi, Section A, line 8a: The following is provided for clarification. TASB Board Officers and the Executive Director (non-voting) make up the Executive Committee with certain designated authority. Meeting activities are documented, including actions taken, at each meeting. These individuals also serve as the First Public Governance Committee (with the Executive Director serving in a voting capacity). While the same individuals serve on both committees, these are two separate committees with different roles and responsibilities. The First Public Governance Committee, which has authority to act on behalf of the TASB Board, documents its meeting activities, including actions taken, at each committee meeting. Other TASB committees also document their meeting activities, although most action items require final Board approval. Form 990, Part VI, Section B, line 11 The outside auditing firm engaged by the TASB Board prepares the Form 990 using information provided by TASB's accounting staff. The completed Form 990 is reviewed by TASB's accounting staff and general counsel. A copy of the return is posted on an electronic site available to board members, who are notified via email when the return is available for their review. Board members are given the opportunity to comment prior to final submission to the IRS. Form 990, Part VI, Section B, line 12c The TASB Board avoids conflicts of interest that will materially and adversely affect the interests of TASB through Board policy. Each Board member (including the Executive Director who is an ex-officio, non-voting member of the Board) reviews the Board's conflict of interest policy and must complete, sign, and return an annual disclosure form, identifying the presence or absence of any known actual or potential conflicts. If a disclosure has been made, the Board will determine whether the proposed transaction or arrangement is fair, reasonable, and in the best interest of TASB; and, in the case of a disclosed interest made by the Executive Director, the Board's executive committee makes such determination. A person whose actual or potential conflict is under review must stand in recusal and not debate or vote on such determination. Records or minutes of the Board will state the name of the board member whose interest was disclosed; state the nature of the interest; and summarize the content of the discussion and vote taken by the disinterested voting members. A similar annual disclosure requirement is required of TASB's key employees. Key employees, as well as all employees, cannot have financial interests in contracts or other transactions involving TASB, without the Executive Director (or designee) making a determination that the transaction is fair, reasonable, and in the best interest of TASB. Form 990, Part VI, Section B, line 15 TASB follows board-adopted policies regarding compensation of the TASB Executive Director, key employees and other executives, and the First Public Managing Director (discussed below). The TASB Executive Committee evaluates comparability data and recommends appropriate compensation for the Executive Director to the board. The Executive Director is authorized to set and approve compensation for TASB key employees, including executives, under board-approved parameters. The Executive Director relies on comparable data from various sources. Regarding the First Public Managing Director, as stated previously on Schedule O with respect to Part VI, Line 8, the TASB Board Officers and the Executive Director collectively serve as the First Public Governance Committee. The TASB Board has delegated the First Public Governance Committee with the authority to consider and approve matters that TASB is entitled to approve as the sole member of First Public. This authority includes approving the compensation of the First Public Managing Director. The First Public Governance Committee relies on comparable data in making compensation decisions. Form 990, Part VI, Section C, line 19 TASB's charter, bylaws, conflict of interest policies, and audited financial statements are available for public inspection upon request. Form 990, Part VI, Section B: TASB leases certain employees to First Public. These employees are defined as "associated persons" of First Public by the Securities and Exchange Commission. By virtue of the employee lease agreement between TASB and First Public, First Public has the authority to manage the day-to-day activities of these associated persons. First Public has written supervisory procedures that associated persons must follow, and such procedures include the requirement to follow TASB administrative policies to the extent they do not conflict with the policies and procedures of First Public. Form 990, Part VII, Section A: While column (B) in Section A reflects full-time TASB employees as working an average of 40 hours per week, these individuals are exempt and often work in excess of 40 hours. Form 990, Part VIII, Line 2- Program Service Revenue: Certain program service revenue reported on Line 2 includes income derived from Texas Interlocal Cooperation Act administrative agencies and programs created to perform administrative functions associated with the routine operation of government. This revenue constitutes income which is related to the exempt purpose of TASB, and is exempt under Section 501(c)(3) of the Internal Revenue Code. In particular, The Internal Revenue Service has confirmed that the administrative services rendered by TASB to the various cash/risk management programs are related to its exempt function of lessening the burdens of government and, therefore, are related trade or business within the meaning of Section 1.513-1 (D) (2) of the regulations. Additionally, TASB's Risk Management program revenue is derived from the performance of an essential governmental function and is exempt under Section 115 of the Internal Revenue Code. The remaining elements of TASB's program service revenue are related to TASB's exempt function of lessening the burdens of government or serving an educational purpose and, therefore, such revenue also constitutes income from a related trade or business under Section 1.513-1 (D) (2) of the regulations. Form 990, Part VIII, Line 5- Royalties: Royalties primarily consist of revenue received through affinity and license agreements between TASB and four affiliated entities for the use of TASB's intellectual intangible assets such as its name and logo in promoting, marketing, and offering their various programs and services. These affiliated entities are all administrative agencies of cooperating local governments organized under the Interlocal Cooperation Act (Texas Government Code, Chapter 791). Services provided by these affiliated entities directly contribute to TASB's exempt purpose by lessening the burdens of government on public schools and other governmental entities, and allowing them to be more efficient and effective. TASB also receives royalties from a national school board association, an internal audit service firm, and a data analytics software development firm for the use of TASB's name and logo. Form 990, Part XII, Line 2- Financial Statements and Reporting: The following is provided for clarification. The Budget & Finance Committee of the TASB Board annually considers engagement of the accounting firm that will conduct the TASB financial statement audit. The Committee's recommendation is taken to the TASB Board for approval. The audited financial statements are presented to the Committee, and the external auditors review their reports with the Committee for acceptance. The audit is then taken to the TASB Board for approval and acceptance upon recommendation of the Committee. Regarding First Public, the First Public Managing Director engages the independent audit firm, reviews and accepts the annual financial statement audit, and presents the audit to the First Public Governance Committee for review. First Public LLC 12007 Research Blvd Austin TX 78759 742275519 Investment Management TX 4403380 2691148