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What Every Treasurer Must Know. Teresa Williams, National PTA Secretary-Treasurer Jeanice Aikens, National PTA Chief Financial Officer. © National PTA, 2010. Let’s Talk About. Money Management Reports and IRS Regulations Insurance Needs Fund Raising Resources Best Practices.

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What Every Treasurer Must Know

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what every treasurer must know

What Every Treasurer Must Know

Teresa Williams, National PTA Secretary-Treasurer

Jeanice Aikens, National PTA Chief Financial Officer

© National PTA, 2010

let s talk about
Let’s Talk About
  • Money Management
  • Reports and IRS Regulations
  • Insurance Needs
  • Fund Raising
  • Resources
  • Best Practices
first steps
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
money management5
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
  • 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
  • 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
east anywhere high school
East Anywhere High School

Tip: Use the program and report design that is best for you and your PTA!

reports and regulations10
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
resources from national pta
Resources From National PTA

National PTA


all states and local units

access to resources

that are easy to


tax code compliance
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!

federal requirements
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)
a correct and timely form 990
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?
purpose of the pta audit
Purpose Of The PTA Audit
  • To certify accuracy of books and records
  • To assure membership resources are being managed properly
three types of audits
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
preparation for financial review
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
why does pta need insurance coverage
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
types of coverage
Types Of Coverage
  • General Liability
  • Fidelity Bond
  • Directors and Officers Liability
  • Property
general liability coverage24
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
  • Types of Events Covered
    • Meetings and Dinners
    • Book Fairs
    • Food Sales
    • Carnivals
    • After Prom
    • Graduation Parties


  • Make sure your insurance carrier provides a list of all covered activities
  • Never assume that your PTA is under someone else’s coverage.
events not covered
Events Not Covered
  • Typically the following events are not covered
    • Firework Sales
    • Mechanical Rides
    • Boats
    • Watercraft Activities
    • Organized Sports
fidelity bond coverage28
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
  • 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


  • Match the amount of coverage to the amount of the budget.
officers and directors coverage31
Officers And Directors Coverage
  • How are PTA Officers protected?
  • What situations are covered?
  • How are officers not protected?
how many fund raisers should a pta hold
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
who needs to approve contracts
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
tips for a successful event
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
useful resources
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



Money Matters will

arrive in the


Box of Possibilities!


Another great resource

developed by National

PTA is the…

PTA President’s Quick Reference Guide

contact information
Contact Information

Teresa Williams

National PTA Secretary-Treasurer


Jeanice Aikens

National PTA Chief Financial Officer