Area 2 Gwinnett County Council Leadership Treasurer Training

2. Area 2 Gwinnett County Council Leadership Treasurer Training Cathy Wendholt-McDade Georgia PTA Treasurer

3. The PTA Audit • Certify the accuracy of the records of the financial officer. • Assure the membership that resources/funds are being managed in a businesslike manner within the membership approved budget. • Required to be in good standing with Georgia PTA and for bonding insurance.

4. Audit FAQs • Does the audit have to be completed by a CPA? • Do we have to pay someone to do our audit? • Can we write checks during the audit?

5. Auditor presents report to the Executive Committee Executive Committee presents the report to the membership at the first meeting of the school year to adopt the report Copy of audit report (all 3 pages) is submitted to the state office no later than September 30th. Gross receipts for the year are filed on the appropriate federal tax form with the IRS. Once the audit is complete…

6. IRS Form 990 • All Not For Profits, regardless of income, required to file a Form 990 • Failure to file for three years, automatic revocation of tax exempt status • 990 N – Electronic Postcard • Receipts less than $50,000 • 990 EZ • Receipts less than $500,000 and assets less than $1.25 million

7. IRS Form 990 N Completing the e-Postcard requires the seven items listed below: Employer identification number (EIN) Fiscal year Legal name and mailing address Any other names the organization uses Name and address of a principal officer Web site address if the organization has one Confirmation that the organization’s annual gross receipts are normally $50,000 or less

8. 990 FAQs • When is my 990 due? • Who is responsible for completing? • Who is responsible for sending in to IRS? • Who signs the return?

9. Online Resources Internal Revenue Service www.irs.gov GuideStar www.guidestar.org National Center for Charitable Statistics http://nccsdataweb.urban.org

10. The Budget Process • Budget Committee prepares proposed budget • Calendar of programs and projects • Realistic estimates of the costs • How will you fund programs • Present proposed budget to Board of Directors • Present proposed budget to General Membership for approval • New budget each year

11. Things to Consider before Fundraising • Don’t just fundraise to fundraise! • Membership Approval • Carry over • 3 to 1 Rule • http://www.irs.gov/charities/index.html

12. Things To Remember • Dues Transmittal • Insurance Premium • Incorporation Fees

13. Insurance What does a fidelity bond policy cover? Protects the cash of the PTA unit against theft, fraud and embezzlement Who should be covered under this policy? Anyone in your PTA who has access to or handles money (e.g. Treasurer, President, Fundraising chair)

14. Other Insurance Coverage • GENERAL LIABILITY: Protects all members in case they are held legally liable for bodily injury or property damage to another person that resulted from a covered event. • DIRECTORS & OFFICERS LIABILITY: Covers protection if an officer or member of PTA is sued for not living up to the responsibilities and duties assumed as a member of PTA. • PROPERTY: Covers property owned by the PTA - Laptop, merchandise for fundraiser, Fall Festival Booths, etc. • ACCIDENT MEDICAL: Provides medical payment for injuries sustained at a PTA event.

15. Donations • Contributions to the PTA are tax deductible in full if no service or other benefit is received in return. • Single cash contributions in excess of $250 require a receipt documenting the charitable donation to the PTA. • If the donor claims the value of a non-cash contribution of $250 or more, the PTA is required to furnish a written acknowledgement as well, following similar guidelines for cash contributions. However, the PTA is not required to, and should not, place a value on the contributed item(s) for the donor.

16. Treasurer’s Responsibilities • Write checks as authorized by the PTA/PTSA president in accordance with the adopted budget ; • Have checks signed by 2 people: the treasurer and 1 other person. (Individuals authorized to sign checks shall not be related to each other; • Always issue a receipt for cash received; • Maintain a full and accurate account of the receipts and disbursements in the books belonging to your PTA/PTSA;

17. Treasurer’s Responsibilities • Reconcile the bank statements monthly and have the statements reviewed, signed and dated by the president and another PTA member (not related to the treasurer); • Have records available at all meetings; • Provide a written financial statement at all PTA/PTSA meetings; • Present an annual report of the financial condition of the organization; • Have the accounts examined annually at the end of the school year or upon the change of treasurer by an auditor or committee

18. Treasurer’s Responsibilities • Never sign a blank check; • Pay all bills by check – never by cash; • Never deposit funds of this PTA in a personal account or a school account; • Electronic banking

19. Treasurer’s File • Bylaws • Budget • Last Audit Report • Checkbook register/Cancelled checks (voids too) • Signed Cash Verification Forms/Deposit slips • Authorized Check Request Forms/Receipts • Bank statements, bank books Cash receipts • All PTA/PTSA meeting minutes • Treasurer and Secretary reports • Annual Financial Report • Copy of last tax return filed

20. Internal controls The cornerstoneof all your PTA’s financial transactions. Most only require one person to create, the risk of fraud increases due to lack of checks and balances. Ensure that you have proper internal controls in place to mitigate that risk.

21. Internal controls Factors necessary: • Board of directors commitment • Sound policies and/or procedures regarding the segregation of duties • Compliance with and review of the policies/procedures in place

22. Internal controls Factors necessary: • Policies/procedures should be in writing • Segregation of Duties

23. Internal controls Factors necessary: • Segregation of Duties: • A person(s)* who does not have the authority to approve payments receive invoices • The person(s)* who can approve payment should not be able to cut checks or enter invoices into the accounting system

24. Internal controls Factors necessary: • Review on a monthly basis all bank statements and bank reconciliations by someone who does not have access to authorize or enter invoices • Maintain a filing system for proper and complete storage of all necessary documentation

25. Internal controls Factors necessary: • Be organized and consistent • Review internal control policies/ procedures annually • Ensure proper training for personnel or volunteers

26. Risk Regardless of how automated the process, without effective internal controls in place, there will be opportunity for fraud to occur.

27. Risk For fraud to occur, only three things are needed: opportunity pressure rationalization

28. FRAUD If you believe that fraud has occurred, which generally involves stolen or misappropriated assets like cash, property, or equipment; you should contact your Council, District and State PTA.

29. Online Bill Payment Helps improve visibility and transparency of the accounts payable process through automation and electronic record-keeping Helps eliminate lost or misfiled documents Reduces process and data entry errors through document capture and financial process automation Eliminates check printing, signing, and mailing

30. Online Bill Payment Allows access to financial documents anytime, anywhere Helps eliminate check fraud Forces second approval of vendor payments Can increase productivity and lower costs through paperless document imaging, auto- mated bill routing, and integrated online bill payment

31. Online Bill Payment But…. fraudcould still occur the same way it could if using checks.

32. Online Bill Payment Possible Service Providers Anybill - https://www.anybill.com Bill.com™ – https://www.bill.com Intuit Quicken Bill Pay – https://quicken.intuit.com/

33. Online Banking Recommended Account Controls • Train volunteers on policies and procedures • Consult with your bank to see what security options are available • No shared user names and passwords • Assign two individuals as administrators • Set user online access levels by roles and responsibility

34. Online Banking Recommended Account Controls • Review user online access levels regularly • Delete online user IDs as soon as a person resigns his or her position • Set up alerts to notify persons of payments initiated or deposits made • Allow read-only access to individuals who should be monitoring the bank account

35. Online Banking Recommended Security Settings • Keep an updated antivirus application • Keep your passwords and user IDs secure • Select a strong password and do not give your password or bank ID to anyone • Never respond to or open internet links or attachments in unsolicited emails, especially ones that appear to come from your bank

36. Using Credit Cards for Bill Payments Have credit card policies and procedures in place • State by whom and for what it can be used and cardholder responsibilities • Have cardholders sign a statement - they have received the credit card - have read and agree to the terms and conditions of the credit card policy • Get a credit card that will allow limits by user -limits set by board of directors

37. Using Credit Cards for Bill Payments Have credit card policies and procedures in place • Get a credit card that will allow limits by user -limits set by board of directors • Set up an approval process -all credit card receipts are received -all charges have been pre-approved • Make sure expense reports are signed/dated -card holder -designated approver

38. Using Credit Cards for Bill Payments Have credit card policies and procedures in place • Make sure the cards of all former volunteers are destroyed and deactivated immediately upon termination • Assign a person who does not have a company card to review receipts and reconcile them to the credit card statement

39. Use of ATM/Debit, Gift, or Deposit Only Cards National PTA highly recommends that the use of debit or gift cards not be used as a form of payment. Deposit only ATM cards are acceptable if your bank offers this service.

40. Deposit Only Cards Deposit only ATM cards can be requested for volunteers, which allow them to make deposits only Each card has a unique card number and individual personal identification number (PIN) Deposit cards can be used at any deposit- taking ATM that is affiliated with your bank

41. Accepting Credit Cards When a local PTA decides to accept credit cards as a form of payment, a review of internal controls will need to be conducted to ensure policies/procedures are in place.

42. Accepting Credit Cards Best Practices Do not transmit cardholder’s credit card data by e-mail, mail or fax Do not store credit card data for customers on paper or electronically in an unsecured area Do not store PIN or CVV2/CVC2/CID numbers Do not share user ID’s

43. Accepting Credit Cards Best Practices Never disclose any cardholder’s data without their consent Store all documents containing credit card data in a secure place which PTA solely controls Ensure that the person processing the transaction is properly trained in best practices

44. Accepting Credit Cards Best Practices Each person who has access to credit card information is responsible for protecting it Keep documentation for each transaction so that disputed charges do not become a problem When a refund is necessary, the refund must be credited only to the same account from which the purchase/donation was made

45. Accepting Credit CardsPTA’s Responsibilities Must comply with Payment Card Industry Data Security Standards (PCI DSS) These standards protect the PTAs from issues of liability and fraud PCI Data Security Standards can be located at: http://www.pcisecuritystandards.org/securitystandards/pci_dss.shtml

46. Thank you for having me here today Cathy Wendholt-McDade Georgia PTA Treasurer cwmcdade@georgiapta.org 114 Baker St., NE Atlanta, GA 30308-3366 Phone: 404-659-0214 or 1-800-PTA-TODAY