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What Every Treasurer Must Know

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  1. What Every Treasurer Must Know Teresa Williams, National PTA Secretary-Treasurer Jeanice Aikens, National PTA Chief Financial Officer © National PTA, 2010

  2. Let’s Talk About • Money Management • Reports and IRS Regulations • Insurance Needs • Fund Raising • Resources • Best Practices

  3. First Steps! • Make sure books are audited/financial review • Check the files! • Study duties and any reference to finances/budget in your PTA bylaws • Secure signatures of authorized officers • File signature cards with bank • Check on bond and liability insurance • Review PTA Money Matters

  4. Money Management

  5. Money Management • Develop a realistic budget • Review Records Retention Schedule • Store records properly — keep: • Copies of all Treasurer’s Reports • Bank Statements and Reconciliations • Check Request or vouchers • Deposit Receipts

  6. Banking • Two Signatures on all checks • Use Large Size Checks • Duplicate Check • Fees and Monthly Charges • Deposit and Withdrawals • Location and Hours • Online Banking Availability • Monthly Statements

  7. Reporting • Make a report at all Board meetings • Develop a report to best reflects a transparent process • Budget Amount • Monthly Report • Year-to-Date Total • Balance of Line Item

  8. East Anywhere High School Tip: Use the program and report design that is best for you and your PTA!

  9. Reports And Regulations

  10. Reports And Regulations • Follow all State and Federal guidelines • Follow your approved budget, amend if needed • Perform an financial review/audit at year’s end, or when needed • Review relevant areas of www.irs.gov

  11. Applying For Tax-exempt Status • www.irs.gov

  12. Resources From National PTA National PTA provides all states and local units access to resources that are easy to understand.

  13. A top priority of any state, council, district, or local unit is to stay in compliance with tax codes. Tax Code Compliance Here's a Great Tool!

  14. Federal Requirements • Federal Tax Exempt Status – 501(c)(3) • Employer Identification Number (EIN) • Determination Letter of Tax Exempt Status • Public Inspection Requirements • Unrelated Business Income (UBI)

  15. A Correct And Timely Form 990 • Who should file? • Which form should be filed? • When to file? • What are gross receipts? • Why is this important? • What happens if we don’t file?

  16. Audits And Financial Reviews

  17. Purpose Of The PTA Audit • To certify accuracy of books and records • To assure membership resources are being managed properly

  18. Three Types Of Audits • Compiled Financial Statements • Limited or no verification of information • Reviewed Financial Statements • Perform some inquiry and analytical procedures – Limited assurance of information • Audited Financial Statements • Highest level of assurance of information • Extensive substantiation and verification

  19. Preparation For Financial Review • Financial records should be “put in” order • Bills cannot be paid after books are closed for financial review • Materials needed include • Copy of last financial review/audit • Checkbook and canceled checks • Bank statements and deposit receipts • Itemized statements and receipts of bills paid • Check requests or vouchers

  20. The Need For Insurance

  21. Why Does PTA Need Insurance Coverage? • School districts generally do not cover PTA Units • Protects the assets of the PTA • Protects the assets of PTA members

  22. Types Of Coverage • General Liability • Fidelity Bond • Directors and Officers Liability • Property

  23. General Liability Coverage

  24. General Liability Coverage • Who should be protected? • The PTA unit • Volunteers, PTA members • What protection does general liability provide? • Actions against the PTA from injury or property damage • Is there a dollar limit? • PTAs are encouraged to investigate a policy containing a $1 million limit; this is an industry standard

  25. Coverage • Types of Events Covered • Meetings and Dinners • Book Fairs • Food Sales • Carnivals • After Prom • Graduation Parties Tips: • Make sure your insurance carrier provides a list of all covered activities • Never assume that your PTA is under someone else’s coverage.

  26. Events Not Covered • Typically the following events are not covered • Firework Sales • Mechanical Rides • Boats • Watercraft Activities • Organized Sports

  27. Fidelity Bond Coverage

  28. Fidelity Bond Coverage • Protects the cash of the PTA unit against • Theft • Robbery • Embezzlement • Who’s Covered? • All individuals who handle funds regularly • Treasurer • President • Fund Raising Chair

  29. Considerations • How can your PTA protect itself? • Two signatures on all accounts • Have the checking account reviewed by someone who is not a signer • Conduct an annual audit/financial review • How much coverage do we need? • Each PTA should determine their own amount of coverage Tip: • Match the amount of coverage to the amount of the budget.

  30. Officers And Directors Coverage

  31. Officers And Directors Coverage • How are PTA Officers protected? • What situations are covered? • How are officers not protected?

  32. A “Word” About Fund Raising!

  33. How Many Fund Raisers Should A PTA Hold? • Remember the “3 to 1 Rule” • Base fund raisers on your annual budget and plan your activities • Be knowledgeable of IRS Regulations • Research State regulations governing non-profit fund raising

  34. Who Needs To Approve Contracts? • Approval of contracts has an effect on your overall PTA Budget and Operations • The Board should have input • The president should sign all contracts • Do not allowa vendor to push your PTA into a contract

  35. Tips For A Successful Event • Make sure your percentages are the highest possible • Does the event have a good track record with your PTA? • Make sure your members know where the funds are going to be used • Deposit all funds the day they are received

  36. Useful Resources • www.pta.org • National PTA e-Newsletters • PTA Money Matters • PTA Convention Handouts • PTA President’s Quick Reference Guide • NPTA e-learning courses • Ethical Leadership • Preventing Theft In Your PTA

  37. The 2010-2011 Money Matters will arrive in the PTA Box of Possibilities!

  38. Another great resource developed by National PTA is the… PTA President’s Quick Reference Guide

  39. Contact Information Teresa Williams National PTA Secretary-Treasurer twilliams@pta.org Jeanice Aikens National PTA Chief Financial Officer jaikens@pta.org