BY DANI TIETZ
dani@mahometnews.com
The Mahomet-Seymour PTO opened up its board meeting Thursday night to community members after Mahomet residents Sunny McMurry and Lisa Frerichs took to social media questioning the organization’s financial practices.
McMurry contacted the PTO earlier this summer with questions about the percentage of money that goes back to the schools from funds raised during the Dawg Walk and for an explanation about why Ken Keefe, the PTO’s Corresponding Executive, received reimbursements for $1,462.67, $9,370.72, $14,127.53 and $237.41 under “Dawg Walk Expenses.”
Keefe was also elected the Mahomet-Seymour School Board on April 2, 2019.
At that time, the PTO answered McMurry’s questions.
A few weeks later, McMurry asked for a private meeting with PTO board members on Aug. 9.
On Aug. 5, Murry commented on a July 8 Facebook post by the M-S PTO, calling for corporate sponsorships for the Dawg Walk. As the conversation took on a life of its own, the PTO decided to open its board meeting to discuss the Dawg Walk on Thursday to the public.
The Thursday meeting, which was originally going to be a closed meeting to plan for the upcoming Dawg Walk, began with the PTO stating that it would like to allot 30 minutes to 2018 Dawg Walk discussion.
The organization opened with some information about the history of the PTO.
The Mahomet-Seymour PTO is a 501c3 non-profit organization run by about 5 to 10 volunteers who raise money to benefit the Mahomet-Seymour School District, particularly students and teachers in Middletown Prairie Elementary and Lincoln Trail Elementary. The PTO is not under the financial umbrella of the district.
Fifteen years ago, the PTO moved away from the student sell model where children sold items like wrapping paper. Instead, they asked students to gather donations from family and friends at the beginning of the school year, then provided all students, whether they raised money or not with an at-school celebration, which includes walking, popsicles and dancing.
The PTO reports that students bring in between $85,000 and $100,000 annually.
After expenses are paid, the PTO netted approximately $77,000 for the schools in 2016, $71,000 in 2017 and in 2018 they netted $75,000.
From the netted amount, the PTO sets aside money for other incentives, such as Top Dawg, Reading Programs, PBIS, HANDS Around the World, and there is money set aside for a STEM program.
After their staples are paid for, they take the rest of the money, which is generally around $60,000 and make sure that Middletown and Lincoln Trail get their share based on the number of students registered for school on the sixth day of school.
That money is divided into thirds: one third going directly to the school, the second goes to school grants and the third goes to teacher stipends. If there is any money after that, it goes directly to the schools.
While the Dawg Walk has taken on many different philosophies and models in recent years, it has consistently posted its budget, expenses and reimbursements on its website. The M-S PTO is the only non-profit organization in Mahomet to list their financial updates on their website.
Prior to 2013, the PTO kept a balance of $30,000 to $50,000 between school years. The balance was used to fund events and keep a safety net for unexpected expenses. Oftentimes, the PTO was able to use that money from the previous year to pay for the prizes and T-shirts Dawg Walk fundraisers had in the current school year.
Seven years ago, the PTO decided to disburse all but $5,000 to the schools throughout the school year in which the money was raised so that students who raised the money would immediately benefit from the money they raised.
This change posed a problem of its own in that the PTO would not have the funds to purchase prizes and T-shirts at the beginning of each fall as vendors asked for money upfront.
The PTO board members began the practice of using their personal credit cards and checks to put the money upfront for predicted t-shirt orders and prize rewards.
With a decade’s worth of data, the PTO expected there to be around $15,000 in upfront costs prior to Dawg Walk money being accounted for.
In 2017, that changed. In early fall of 2017, the PTO learned that it needed to purchase T-shirts for every student in grades K-5. Instead of 700-800 T-shirts, it would purchase 1,500 t-shirts.
The other problem posed to the PTO was that the mechanism they used to raised money would need to drastically change. That first year every family did not know they would receive a T-shirt, but by the second year, the cat was out of the bag: every student would receive the T-shirt, which, in years past, was given to the students who hit a $50 fundraising mark.
The PTO had to come up with additional incentives to raise the funds. The group decided to offer items like Bluetooth headphones and durable water bottles to the students, along with a chance to slime the principal, get on the Top Dawg list or get a pizza party, among other incentives.
While the costs associated with purchasing those prizes upfront increased, students also brought in a gross profit that was more than ever before: $107,274.98.
Whereas some board members in years past used personal credit cards and debit cards, Keefe fronted the money for the prizes on his personal credit cards. The PTO then reimbursed him for those expenses once he submitted the receipts, which the PTO has on file.
The checks to Keefe were signed by two PTO board members.
On Facebook, Frerichs and McMurry called into question whether or not Keefe received any benefits, such as credit card rewards from the transactions.
McMurry was not at Thursday night’s meeting, but Frerichs asked the same question to a room of eight board members and approximately 10 community members.
“As far as the expenses, are we able to break down the general description of Dawg Walk expenses? Frerichs asked. “How much did we spend for prizes? How much was spent for printing? Any other expenses? I did see a port-a-potty expense. Other than that, it was lumped into one big sum of Dawg Walk expense.”
Frerichs asked for the expenses in a more detailed format.
“I noticed on last year’s budget, it was $11,000 over the budget that we spent on prizes,” Frerichs said. “I was just looking for an explanation on that. I looked for the minutes on the webpage, they weren’t on there, so I wanted to know who voted on extending the budget by $11,000 and how that came about.”
The PTO said that the minutes have not been posted recently (other than four) because people have not been looking at them online. They also said that they hoped that instead of people reading minutes online, they would come to the meetings and participate in the process of discussion and the work the PTO does.
Frerichs continued by asking that if the PTO has the minutes, who voted on the $11,000 extra expenditures for prizes?
The PTO said that they did not vote, that the expenditures got away, that it was not a group decision.
Frerichs asked Keefe to answer the question, too.
Keefe explained that the budget the PTO puts out in late summer is not a fixed budget. Instead, it is a historical record of what happened the previous year.
The PTO added that one year the budget was $10,000 for prizes, but because of orders, they went $7,000 over. The following year the budget reflected that increase by predicting $15,000 in expenses.
They also said that the change between purchasing 700-800 T-shirts to 1,500 T-shirts was an unforeseen cost.
Frerichs said that the breakdown of those expenses would be helpful. She then questioned the printing cost the PTO had listed.
The PTO said printing costs came from envelopes, signs, banners, and a blow-up arch.
Frerichs said it would be helpful to have that information. She then asked about the expenses to Keefe for very high dollar amounts.
Keefe said that there are receipts for all of the expenses.
Frerichs wanted to know why all of the checks were written directly to Keefe.
The PTO said because he made the purchases. They explained that Keefe is an appointed member, and only the elected members have access to the checks and debit cards. The board said that there wasn’t a decision to go $11,000 over the projected budget, but as prize orders came in as students donated money, the prizes needed to be purchased. Keefe made the purchases, then was reimbursed.
As other parents in attendance shared their experience about not knowing how much their child would raise from year-to-year, Frerichs continued to ask how Keefe paid for the prizes.
Keefe said that he used his credit card.
Frerichs asked if Keefe received any cashback benefits.
He said that he wasn’t sure the personal benefit, but he’s pretty sure he did. He said it was on a personal credit card, so he was not sure if the benefits were from the PTO purchases or his own purchases. He said the billing statement doesn’t say what item gave what reward.
Frerichs asked, “Are they airline miles or cash back?”
Keefe said, “it was a mixture of things.”
Frerichs asked, “So you could be getting cash back from these purchases?”
Keefe replied, “Yes.”
Frerichs reiterated, “So from the $26,000 you spent on these cards, you could be receiving cash benefit at the end of the year?”
Keefe replied, “Yes.”
The Mahomet Daily asked Keefe if he donated money to the PTO within the last year.
Keefe said, “Easily over $200 or $300.”
Frerichs asked if it was from his children’s donation.
Keefe said it was his donation to his children’s fundraising for the PTO.
Frerichs asked if his children also received prizes from that donation.
Keefe said they did receive prizes.
Frerichs said, “That’s all I need to know.” Then asked, “Are you aware that by personally benefitting, you could lose your 501c3 status?”
The PTO said that was not correct.
Mahomet resident Diana Onken said that she works for a 501c3. She said she uses her credit card all the time to make purchases because she works remotely. She said she gets reimbursed and points back.
“We do this all the time,” Onken said.
Frerichs went on to ask who is responsible for posting the financials to the PTO website.
The PTO said it is the treasurer and that there isn’t much of a lag time between purchase and the time when the amount is posted to the site.
Frerichs claimed that the financials from last year were not posted until April.
The PTO said they get on there regularly and that they are updated. Members of the group tried to understand the claim made by Frerichs by asking her about browser use and caching.
Current treasurer Nathan Seymour said that between his job, coaching rec sports and raising five kids, it’s often difficult to find time to keep things up to date, but he does it as best he can.
He said that as soon as he updates items on the excel sheet, it is posted with a direct link form the sheet to the website.
When the PTO stated the Frerichs could ask one or two more questions so that the time allotted stayed within 30 minutes, Frerichs said, “I asked that this meeting be addressed in a very private manner,” she said.
The PTO said they also requested the same, but when Frerichs and McMurry took to Facebook to make the matter public, it became a public issue.
The PTO said they have back-to-school supply boxes and six back-to-school nights within a week and a half to prepare for. While the PTO tried to explain that they had other matters to also tend to, Frerichs continued to ask her question about Keefe’s purchases.
“Were any items returned back to the company?” Frerichs asked.
The PTO said that they were not. The PTO was gifted a small storage facility to use year-round at no charge.
Frerichs wanted to know if the items that were received were counted and distributed.
When the PTO explained that they were, Frerichs said, “I’m asking Ken.”
“Yes, I want to make sure that I’m answering you correctly,” Keefe said.
“Thank you so much,” Frerichs replied.
The PTO wanted Frerichs to understand what happens to the leftover items that the PTO purchases.
Each year the PTO has leftover prizes. They order extras in case they make a distribution mistake or in case a product breaks.
Last year one of the teachers at Middletown Prairie approached the PTO about a new student who came into the district with three weeks left in school. The teacher wanted to know if there was anything the PTO could do to make the child feel welcome.
Two board members went to the storage unit and put together a bag which included a Dawg Walk t-shirt, sweatshirt, water bottle and a squishy thing. The child received the bag with a note welcoming the child to the district.
Middletown Prairie’s Principal Ryan Martin and Lincoln Trail’s Principal Megan Hunter now know that there are bags available for students as staff identifies a need.
The PTO also gave leftover squishies with the Box Top rewards at the PTO ice cream party.
They said that they are looking at what is there instead of spending additional money on prizes throughout the year. The same holds true with the parties that they throw for students: instead of holding a pizza party that costs $200, they are now doing ice cream parties that may cost $30.
As the PTO enters into the new school year, it is committed to making sure they do everything with a vote on the same page.
Frerichs said that she has been on PTA boards in the past, and that she has a lot of knowledge.
“If you want to reach out to me, please do so,” Frerichs said.
The PTO said they welcome the help. Over the years they have tried to get volunteers, even holding a volunteer night. One person showed up at the 2019 call for volunteers.
They continued on to say that they are sad that it took this to get people to come to a meeting, but if those people were willing to volunteer, there are plenty of spots and needs available.
Frerichs said she had two more questions.
“Have you guys done an audit?” Frerichs asked.
They said that their taxes were done professionally in 2019.
She then turned her questioning back to Keefe, “do you feel like you were ethical in accepting a personal benefit while you were using your credit card?”
“Sure,” Keefe said.
The PTO board wanted to clear up that they continue to be on a learning curve. The fact that they spent more in 2018 on prizes was something that they had already looked at and were aware of. The board said they continue to make changes to best serve the schools and the kids.
Frerichs said, “I’m here to get facts. I’m not here to find misinformation.”
As other questions were asked, Frerichs began to leave.
She said that she needed to go; that she had other plans.
The Mahomet Daily asked about when budgets are set and decisions are made for a Dawg Walk year.
Prior to 2017, the PTO had data supporting that the $50 donation for a T-shirt would bring in a certain amount of money. When the PTO was required to purchase T-shirts for all students, it threw a wrench in their fundraising plan.
The PTO said that two years ago it had to scramble to figure out how to capture the money that it had in previous years when it was directed to purchase a T-shirt for every student.
They said that they agreed and understood that some students who did not raise $50 were feeling left out because they did not have the Dawg Walk T-shirt, so they were happy to provide that.
“Was part of your decision to change the prizes to encourage people to donate?” the Mahomet Daily asked.
The PTO said that prizes like the headphones and the water bottle have been well-received.
A father said his son, who was in fifth grade last year, saw the prize list and it encouraged him to walk door-to-door in his neighborhood to raise over $500 to get what he wanted.
“Do you think he would have raised as much money had it just been the T-shirt?” the Mahomet Daily asked.
The father said he doesn’t know, but that he thinks his child would not have.
“You’re working for something at that point,” he said. “There is a goal that you’re trying accomplish and he wanted everything on that list, including to be able to slime the principal or vice-principal.
“If it had been no matter what you raise, you get a T-shirt, I think he would have got the $50 and probably played video games.”
The PTO said that it is striving to raise money for the schools. With the more money raised, the more money that it is going to put back into the schools for the kids.
During the week of Aug. 26, the PTO will send Dawg Walk envelopes home with students. Money raised will be due by mid-September.
The PTO will then host its annual Dawg Walk Celebration on Sept. 26 at Middletown Prairie and Sept. 27 at Lincoln Trail.
The PTO said it is always open to suggestions and questions. They can be reached at board@m-spto.com. They are also looking for volunteers to help throughout the year.
One community member stayed for the rest of the PTO meeting on Thursday, and will help with programming in the upcoming year.
The PTO said that while it wanted to get volunteers another way, maybe people showing up at the meeting would be a good way to introduce the need for help.
Mahomet resident Lisa Cosimini was in attendance. At the end of the meeting about the 2018 Dawg Walk, she thanked the volunteers for what they do for the schools.
Cosimini said that she came because she was concerned about the social media discussion.
“I’m a little concerned, though,” she said. “I hope that there’s also something on social media so that everybody knows this is a good thing and no one has done anything wrong.
“I don’t want the fundraiser to hurt.”
Other board members said that if they had the means to provide for the kids in the way Keefe did in 2018, they would.
