Ohio PTA Treasurer Workshop

1. Ohio PTA Treasurer Workshop

2. ThePTA Mission • To support and speak on behalf of children and youth in the schools, in the community and before governmental bodies and other organizations that make decisions affecting children; and • To assist parents in developing the skills they need to raise and protect their children; and • To encourage parent and public involvement in the public schools of this nation.

3. The Purposes of PTA • To promote the welfare of children and youth in the home, school, community, and place of workshop • To raise the standards of home life • To secure adequate laws for the care and protection of children and youth • To bring into closer relation the home and the school, that parents and teachers may cooperate intelligently in the education of children and youth • To develop between educators and the general public such united efforts as will secure for all children and youth the highest advantages in physical, mental, social, and spiritual education

4. Nowhere does it say “Pay for…”

5. The PTA Treasurer: • Is the authorized custodian, elected by the members, to have charge of the funds of the PTA organization • Receives and disburses all monies prescribed in the unit bylaws • Sees that all authorized bills are promptly paid • Gives a financial accounting at regular intervals (meetings) • Must maintain accurate records • Standard financial procedures must be used when keeping records to insure audits can be properly conducted • Must be bonded

6. Before Taking Office • Be sure the books have undergone a financial review before accepting them • Check all files and records received from the retiring treasurer. Ask about any missing records immediately. • Become familiar with the duties of the treasurer as outlined in the bylaws • Secure the signatures of new officers authorized to sign checks and file them with the bank

7. Before Taking Office • Check on the bonding and liability insurance • Study the Ohio PTA Legal and Financial Management Handbook • Read National PTA’s Money Matters Guide in the Annual Resources for PTAs

8. Treasurer’s Duties • Study carefully all references to dues and finances in the bylaws and PTA handbooks • Keep an accurate and detailed account, in a permanent book, of all monies received and disbursed • Receive all monies for all accounts – always issue receipts

9. Treasurer’s Duties • Submit a report at regular meetings of the association including: • Total balance on hand at the beginning of the month covered by the report • Separate amounts received and credited to the general fund • The state and national portion of dues • Any special funds such as scholarships or endowments • Other receipts • Itemized disbursements • Balance on hand in each fund and total balance on hand at the end of the month

10. Treasurer’s Duties • Deposit all monies in approved accounts. Never deposit association funds in the personal account of the treasurer or in the school activity account. • Pay all bills by check – two signatures should be required on all checks • Keep the national and state dues separate along with any other national and state monies

11. Treasurer’s Duties • Forward Ohio and National portion of membership dues to the Ohio PTA on a monthly basis. Work with the membership chairman to always include the proper forms • Work with the membership chairman and secretary to maintain an accurate listing of the membership • Preserve all check requests (vouchers), receipts, bank statements, and canceled checks and submit all of these to the auditor in preparation for the audit

12. Treasurer’s Duties • Deliver all records to your successor • Maintain the permanent file of canceled checks, paid bills, etc. for seven years (see records retention schedule)

13. Treasurer’s Written Report • Should be given according to bylaws requirements • Should indicate what period of the fiscal year the report covers • The date it was prepared and by whom • Should not be adopted but filed in the treasurer’s file • (not filed for audit – just filed)

14. Treasurer’s Annual Report • This report is for information only and only becomes official after the audit has been completed and the audit report officially adopted at the first meeting of the new school term • A financial management checklist should be filed with the annual financial reports and the secretaries minutes after adoption

15. Treasurer’s Annual Report • At the close of the fiscal year, the treasurer should prepare an annual report covering the entire fiscal year • The treasurer should make a preliminary report to the general membership at the annual meeting • Bylaws should provide for the audit

16. The Principles of PTA Financial Management • Properly approved budget • Must be bonded • All funds are administered by the treasurer • Never sign a blank check • Cash is never used • Funds are deposited in authorized PTA bank accounts • Keep PTA funds separate from school funds

17. The Principles of PTA Financial Management • Keep PTA funds separate from school funds • Issue receipts for money received • Two/three people should count the money and sign the receipt • Complete and accurate record keeping • Never record state or national dues as unit income • Audit of all financial records conducted according to bylaws

18. Content’s of the Treasurer’s File • A copy of the PTA bylaws and standing rules with treasurer’s responsibilities highlighted • A copy of the budget as adopted by the association • Receipt book • Checkbook • Treasurer’s account book, ledger or copies of financial records on disc

19. Content’s of the Treasurer’s File • Permanent IRS tax information: • IRS determination letter of tax-exempt status • Employer Identification Number (EIN) • Copies of files form 990 or 990EZ • The Ohio PTA IRS Group Number (2394) • Additional IRS forms as needed

20. Content’s of the Treasurer’s File • Permanent state sales tax information and reports filed with the state • Current membership roster • Ohio PTA and National PTA financial resource materials • Ten years of audit reports/financial reviews

21. Content’s of the Treasurer’s File • Seven years of cash receipts, bank deposits, invoices and statements • Three years of budgets • Any general correspondence dealing with financial matters

22. The Budget - AN OUTLINE OF ESTIMATED ANNUAL INCOME AND EXPENSES.

23. The Budget Developing the Budget • The budget committee • May be elected or appointed • (see your bylaws) • Usually consist of 3-5 members, one of whom is the treasurer who also acts as the chair

24. The Budget • Effective budgets include consideration of stated goals and planned activities as well as the financial means to achieve these goals • Study the previous year’s budget and annual report for information pertinent to a new budget • Ask chairmen to submit budget requests

25. The Budget • Determine the projected financial requirements • Take into consideration the funds needed for programs, projects and leadership development (a legitimate PTA expense) • Budgets cover only a one-year period of time

26. Approving the Budget • After the budget has been drafted, it should • Be presented to the PTA executive committee/board for consideration; then • Presented to the PTA membership, • item-by-item, for approval • The budget is presented at a general meeting where a quorum is determined to be present. A majority vote of the members present and voting is required for adoption.

27. Amending the Budget • The budget is only an estimate of planned expenditures for the year so may need amending periodically • The budget may be amended at any regular meeting of the association or special meeting called for that purpose • To amend something previously adopted takes a 2/3 vote or with previous notice – a majority vote

28. Approval of Expenditures • The adoption of the budget authorizes the treasurer to pay for routine expenses covered in the budget, according to the local PTA bylaws • All expenditures must be reported to the executive committee/board and included in the regular report of the treasurer to the membership • Additional expenditures not provided for in the budget must be approved by the membership

29. Approval of Expenditures • The regular financial report should be attached to the minutes of the meeting at which it is presented • Changes in the budget, including income and expenditures, must be presented as amendments to the budget

30. Banking Bank Accounts • All PTAs are required to provide the bank with an IRS Employer Identification Number • EIN’s are acquired through the Ohio PTA office • Do not use the school’s tax exempt number

31. Savings Accounts • Savings accounts are usually kept for the following purposes: • Efficient management of funds (interest) • Reserve funds to carry on programs during summer months and Fall until dues are collected • Monies to finance unexpected but approved programs or projects • As a guide, this reserve fund should not exceed one-half of the PTA’s budget for an average year. If it does, the indication is that the PTA is not giving as much service to children as it should.

32. Bonding Insurance • The treasurer and all other individuals authorized to handle funds should be covered by a fidelity bond in the amount determined by the executive committee • A fidelity bond covers losses sustained by a PTA through fraudulent or dishonest acts committed by any employees or non-compensated elected officers to handle monies acting alone or in conspiracy with others.

33. Bonding Insurance • A blanket bond covers all members handling funds with the amount of coverage applying separately to each member • A commercial blanket bond covers all members handling funds with the amount of coverage for any one loss regardless of the number of members involved • A position schedule bond covers the positions listed and does not mention any individual by name • The amount of coverage should be determined by taking the average of the association’s gross receipts for the last three years

34. Liability Insurance PTAs should consider their need for liability insurance when there are projects or activities that may result in potential hazards for PTA members, students or other third parties.

35. Liability Insurance • Commercial general liability insurance provides coverage for your legal liability arising from bodily injury, personal injury, advertising injury and property damage to others arising out of your activities • Do not assume that your school district liability insurance extends to PTAs or their activities

36. Membership Dues • Work with the membership chairman to forward the state and national portions of the dues to the Ohio PTA office along with the proper paperwork • The state and national portion of dues do not belong to the local PTA unit and are never recorded as part of the local PTA income but should be recorded as accounts payable within your financial records • Dues should be submitted on a monthly basis • Bylaws state the amount of the annual per capita dues for membership in the association

37. Fundraising Receipts and Expenditures • Deposit the monies from a large fund-raiser as soon after the conclusion of the project as possible • The chair of the activity is responsible for seeing that the treasurer receives the monies in a timely manner • At least two persons should count the money and sign a statement verifying the amount • A receipt should be given to the chair for the entire amount

38. Fundraising Receipts and Expenditures • Never deposit PTA funds in anyone’s personal bank account • The treasurer should be given itemized bills, sales slips, etc. from the fund-raising activity to pay by check • A detailed report should be written for every fund-raising activity

39. Check Requests (vouchers) • A check request voucher should include the following information: • Date • Check number issued • Amount to be paid • Budget line item(s) • With a signature of the president authorizing payment • Receipts must be attached to a voucher before payment is made by the treasurer • These records are available to the audit committee

40. PTA Funds vs. Public Monies • PTA funds should not be deposited in any account other than the PTA account • All monies deposited will be considered PTA funds by the IRS • A PTA should never deposit school funds in its account • If the PTA sponsors a project or program in cooperation with the school, all funds should be accounted for and separated prior to the immediate deposit of the PTA portion into the PTA bank account

41. Financial Review The Purpose of a Financial Review • To certify the accuracy of the books and records of the financial officer; and • To assure the membership that the association’s funds are being managed in a businesslike manner within the regulations established for their use

42. Preparation for Financial Review The treasurer shall deliver the following materials to the auditors: • A copy of the last financial review report • Checkbook and canceled checks • Bank statements and deposit receipts • Treasurer’s ledger • The annual financial report

43. Preparation for Financial Review • Itemized statements and receipts of bills paid • Check requests (vouchers) • Copies of board, executive committee, and organization minutes including the adopted budget and subsequent amendments • Current bylaws and standing rules • Any other information requested by the auditors

44. Financial Review Procedures • Start the review with the records posted after the last audit. Make sure the amount shown on the bank statement corresponds to the starting balance in the checkbook and ledger. • Reconcile each month’s bank statements with the canceled checks. • Make sure each check written is substantiated with a voucher or bill for disbursement. • Verify that all income and expenditures are allocated into the appropriate categories. • Make sure the state and national portions of membership dues have been kept separate from other receipts and have been forwarded regularly to the Ohio PTA office.

45. Financial Review Procedures • Make sure that money collected for a specific purpose has been so disbursed (scholarships, council dues, etc.) • Reconcile each deposit slip with bank statements and checkbook. • Check all cash receipt slips issued and verify proper entry in the ledger. • Check the ledger entries for error and cross-check against checks issued and receipts posted. Cross-reference checkbook stubs with checks issued.

46. Financial Review Procedures • If a check was written and no voucher is present, check to see if it was an approved budgeted item such as council dues. • Check treasurer’s reports and annual report for accuracy. • After corrections have been made, draw a line across the ledger where the audit concludes and sign and date the ledger using a different color ink. “Examined and found correct” <<name>> <<date>>

47. Financial Review Procedures • If all is in order, prepare a statement and have each member of the committee sign it. “The financial review committee has examined the records of the _________ PTA for the period of (time covered) and found them to be correct. Balance on hand $_______.” <<signatures of committee>> • A report must be submitted by the financial review committee in the event there are not sufficient records available to conduct a proper audit. • The financial review report must be officially adopted by the association and must be included in the annual report. • If the validity of the financial report is questioned, an independent certified public accountant should be engaged.

48. ditures • Upon Leaving Office • Be sure that all state and national dues have been collected and forwarded to the Ohio PTA office • Balance the books for the financial review • Make sure PTAs books agree with the bank balance and outstanding checks • Prepare the annual report

49. Upon Leaving Office • Submit IRS Form 990 or Form 990EZ • Prepare other reports required by the government • Arrange for the transfer of all records, reports, and files to the incoming treasurer • Obtain and file new signature cards with the bank • Send a copy of the annual report to the Ohio PTA office

50. 2012