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The Annual Financial Report reports gross receipts and disbursements for the fiscal year and has separate sections for amounts belonging to the association and amounts NOT belonging to the association. The report is distributed to the executive board, to the membership, and may be required by federal and state agencies. Copies of these reports must also be uploaded to the document retention system, as required in the bylaws.

If the fiscal year is different from the budget year and the term of office, a financial report showing all the gross receipts and disbursements for that annual period must also be produced.

See Annual Financial Report (Sample).

(Year-round PTAs adapt accordingly)

UPON ELECTION/MARCH/APRIL

President-elect appoints the budget committee to develop the budget based on proposed PTA programs for the upcoming year.

Treasurer-elect chairs budget committee.

Board-elect adopts preliminary budget.

MAY/JUNE

Present proposed budget for adoption to the current executive board and the membership at the last PTA meeting of the year.

Association approves and releases any funds required prior to the next association meeting in the fall. This allows the board-elect the ability to cover routine summer expenses as outlined in the bylaws.

AUGUST/SEPTEMBER

Re-present budget to association for adoption at its first meeting. Release any funds required prior to the next association meeting.

Present financial review and year-end Annual Financial Report to association. Upload copies of all documents to the document retention system.

Send the first remittance of per capita dues through PTA channels. Send dues as received and at least monthly thereafter. No remittance for E-membership dues.

OCTOBER

Confirm tax forms for prior fiscal year are filed as required with copies forwarded to council or district as directed (Tax Requirements) and uploaded to MyPTEZ. (Contact District PTA for assistance if needed.)

Remit payment for insurance directly to AIM, the California State PTA insurance broker, via the online portal by December 20, or a late fee of $25 will be assessed by California State PTA.

NOVEMBER/DECEMBER

Send per capita dues through channels. Send dues as received and at least monthly thereafter. No remittance for E-membership dues.

Balance membership totals with council and district membership reports.

Prepare books and financial records for the midyear audit.

JANUARY

Submit books and financial records for mid-year financial review, as specified in the bylaws.

Present budget versus actual report to the executive board and association and revise budget if necessary.

Ensure that Workers’ Compensation form and additional premium, if required, have been submitted to AIM by the appropriate due dates.

FEBRUARY

Send Founders Day freewill offering through channels to district PTA, when collected. The event may be held during a month other than February.

MARCH

Ensure all per capita dues have been forwarded through channels. No remittance for E-membership dues.

Register for convention.

APRIL

Issue convention checks for authorized expenditures for elected delegates, if necessary.

Begin transitioning with newly elected financial officers.

MAY/JUNE

Attend workshops for financial officers, when offered.

Submit books and financial records to outgoing financial reviewer for end-of-term financial review, as stipulated in the bylaws (after close of fiscal year).

Give financial records and materials to the incoming financial officer (except those in financial review).

Assist incoming officers with changing authorized signers at the bank as needed. The treasurer-elect should contact the bank to determine the requirements for changing authorized signers.

Prepare Annual Financial Report that reflects the fiscal year. Prepare and file tax returns (end of fiscal year) and upload to MyPTEZ. The fiscal year is listed in the bylaws and on previous tax returns. The recommended fiscal year is July 1 to June 30.

Ensure all per capita dues have been forwarded through channels so that there are no financial review exceptions. No remittance for E-membership dues.

Other pertinent dates should be added (or adjusted) to the calendar to meet time frames specific to each PTA and fiscal year.

A financially healthy PTA

• Ensures that only authorized check signers (as specified in the bylaws) are on the bank signature card. Removes previously authorized signers from the signature card whenever a resignation occurs or a new term begins.
• Prepares and presents monthly treasurer reports, budget-to-actual comparative reports, financial secretary reports, committee reports and financial review reports at board and association meetings.
• Ensures budget is approved by association, funds are released and expenditures are authorized prior to spending funds.
• Only pays bills which have been authorized by the executive board or association.
• Has the bank statements and reconciliations reviewed and signed monthly by a non-check signer; may be the financial reviewer.
• Conducts at least two financial reviews per year, in accordance with the bylaws. Financial reviews not conducted by a qualified accountant are reviewed by a financial review committee.
• Files the appropriate IRS Form 990 annually and all state forms required by due date.
• Conducts a membership campaign throughout the year and remits membership funds not belonging to the association monthly. No remittance is made for memberships received through the California State PTA E-membership program.
• Remits California State PTA insurance premium before December 20^th. Remits Workers’ Compensation Annual Payroll Report Form and any additional premium no later than January 31^st.
• Ensures all monies are counted by two PTA members, one of whom must be an officer or chairman. Cash verification forms are signed by everyone who counts monies. A signed copy of the verification form is kept by each person who participates in the count.
• Issues a receipt for donations (see Providing Documentation to Donors and Donation Receipt).
• Ensures checks, bill payments/electronic funds transfer authorizations and transfers between bank accounts are signed by two authorized check signers.
• Ensures officers receive training at convention, state, district, and/or council PTA workshops.

The Financial Review Checklist should be used, and each box marked in the negative should result in a financial review recommendation. Review each account separately. Check off items in red ink as they are reviewed. Do not correct errors. Ask the responsible financial officer to correct errors. After errors have been corrected, and the financial reviewer is satisfied that the financial accounts are correct, the financial reviewer needs to denote the ending date of the financial reviewer. If a manual ledger and check register exists, draw a double line across the ledger and checkbook register where the audit concludes and sign and date using red ink, “Reviewed by (name) on (date).” If a computerized accounting program is used, attach a copy of the cash account and the last page of the check register to the financial review report filed with the secretary minutes, sign and date using red ink, “Reviewed by (name) on (date).”

The financial reviewer ensures that the association’s financial transactions have been accurately recorded

• Include bank name, bank address, type of account and the account number on each report.
• Start review with records posted after the last financial review. Verify the amount shown on the first bank statement (adjusted for outstanding checks and deposits per the prior financial review) corresponds to the starting balance recorded in the checkbook register, ledger, and treasurer report, and the ending balance of the last financial review.
• Confirm bank statement was reviewed by another non-check signer if the financial reviewer had not been assigned that task.
• Verify there have been no ATM transactions.
• Make sure every check issued for the review period is substantiated with an authorization for payment, the reason and budget line item for the disbursement, appropriate payee and a receipt or bill. Each authorization should be signed by the president and the secretary. If the check has cleared the bank verify that there are two signatures and that both were from authorized check signers. Verify authorization/ratification in the minutes. Note: Checks issued for pass-through funds do not require pre-authorization but should be ratified.
• Check that all bank charges and interest earned are recorded in the checkbook register, ledger and treasurer reports.
• Trace each deposit slip to bank statement and checkbook entries. Verify deposits are properly supported and that a Cash Verification Form (Forms, Chapter 9) or equivalent was used for each deposit. Verify that at least one of the signers of the form was an officer or committee chairman. Ensure money was deposited promptly.
• Ensure collection process is in place for returned checks that includes reimbursement of applicable bank charges. A returned check is treated as reverse income and reimbursed bank charges are treated as reverse expenses. Verify returned checks have been properly reported.
• Verify deposits and checks have been properly recorded in the treasurer’s reports.
• Verify the deposits and checks have been properly posted to the ledger and check register. Note: Request computer reports that show all the various accounts affected by the transaction.
• Verify that all income and expenditures are allocated into budgeted categories.
• Make certain that council, district, State and National PTA portions of the membership dues have been kept separate from other receipts.
• Make certain that the number of memberships agrees with membership chairman’s report, and verify that membership monies collected correspond to membership monies forwarded.
• Remember that Totem memberships do not have a corresponding amount forwarded.
• Ensure payment for insurance premiums.
• Make certain the money collected for a specific purpose (special projects, Founders Day, scholarship funds, council dues, etc.) has been so disbursed.
• Check event reports to verify receipts and expenditures have been properly reflected in the financial records.
• If an advance has been given, verify that receipts and/reimbursements have been received and properly recorded. If money was returned, verify it has been redeposited into the PTA account.
• Compare figures on monthly treasurer and financial reports against ledger for accuracy.
• Ensure proper tax returns have been filed.
• Verify that the PTA-required Workers’ Compensation Annual Payroll Report form has been filed.
• Verify that all required state and federal report forms have been filed if PTA hires employee(s) or independent contractor(s).

The financial reviewer should feel free to contact the treasurer if there are questions or issues needing clarification. If an error in recording a transaction is found, the financial reviewer needs to recommend the entry be corrected. Any corrections made as a result of the review need to be listed on the next treasurer’s report.

The financial reviewer should not be punitive in the report/recommendations. Difference of opinion as to process should not result in a recommendation if the treasurer’s records are correct.

Some examples of recommendations are:

• Cash must be counted by two PTA members and each must sign the Cash Verification Form. On xxxx, xxxx, xxxx, and xxxxx there was only one signature.
• Authorization for expenditure must be voted on by the executive board or association before checks are issued. Check numbers xxx, xxx, xxx were issued before authorizations were approved.
• Authorization forms must be signed by the secretary and president for check numbers xxxx, xxx and xxxx.
• Check numbers xxx, xxx and xxx were issued more than six months ago. They should be voided, and investigated and reissued if necessary.

If assistance is needed, contact the council or district PTA. At any time during the process, California State PTA also may be contacted for information and assistance.

Collect all financial books, records and reports from the treasurer, including:

• A copy of the last financial review report;
• Current bylaws and standing rules;
• Originals of checkbook register, whether handwritten or computer generated, and canceled checks (including voided checks);
• Originals of bank statements, bank book for each bank or savings account;
• Deposits and supporting documents for the cash receipts;
• Authorizations for payment with attached receipts;
• Itemized statements and receipts of bills paid;
• Monthly Treasurer’s Reports;
• Original treasurer’s books/ledgers including back-up files (external storage device) if books are kept on a computer;
• Financial Report by category for the period of the financial review with or without budget comparison;
• Copies of board, executive committee and association minutes, including an adopted budget, any amendments that were approved during the year, approval of expenditures, and ratification of payments;
• Committee reports from chairmen (e.g., fundraising, membership, etc.);
• Any other information requested by the financial reviewer;
• Copy of PTA-required Workers’ Compensation Annual Payroll Report form;
• Copies of all required state and federal report forms if PTA hires employee(s);
• Copies of all required federal report forms if PTA hires independent contractor(s);
• Copies of the most recently filed IRS Form 990;
• Copies of the applicable State Form 199 and RRF-1 and CT-TR-1 form if applicable.

Contents of the Treasurer’s Records
Computer-Generated Financial Records
Guidelines for Computer Use
Budget
Treasurer’s Report
Financial Secretary’s Report
Financial Reviewer’s Report
Annual Financial Report
Unit Remittance Form
Cash Verification Form
Payment Authorization/Request for Reimbursement Form
Workers’ Compensation Annual Payroll Report

Sign all authorizations for payment.

Record financial reports in, and attach to, the minutes.

Record motions to adopt financial review reports, budgets, the annual financial report, and check ratifications in the minutes.

Record other financial motions such as budget adjustments, authorizations and releases of funds.

UPON ELECTION/MARCH/APRIL

President-elect appoints the budget committee to develop the budget based on proposed PTA programs for the upcoming year.

Treasurer-elect chairs budget committee.

Board-elect adopts preliminary budget.

MAY/JUNE

Present proposed budget for adoption to the current executive board and the membership at the last PTA meeting of the year.

Association approves and releases any funds required prior to the next association meeting in the fall. This allows the board-elect the ability to cover routine summer expenses as outlined in the bylaws.

AUGUST/SEPTEMBER

Re-present budget to association for adoption at its first meeting. Release any funds required prior to the next association meeting.

Send approved audit and year-end financial report and current year budget to council or district as directed.

Send the first remittance of per capita dues through PTA channels. Send dues as received and at least monthly thereafter.

OCTOBER

Prepare tax forms and file as required. Forward copies of tax returns to council or district as directed (Tax Requirements).

Send checks for insurance premiums through channels.

Send checks directly to the council or, if out of council, to the district, by the appropriate council or district deadline. The premium must be forwarded through PTA channels to be received in the California State PTA office by December 20, or a late fee of $25 will be assessed by the California State PTA.

NOVEMBER/DECEMBER

Send per capita dues through channels. Send dues as received and at least monthly thereafter.

Balance membership totals with council and district membership reports.

Prepare books and financial records for the midyear audit.

JANUARY

Submit books and financial records for mid-year audit, as specified in the bylaws.

Present budget versus actual report to the executive board and association and revise budget if necessary.

Ensure that Workers’ Compensation form and additional premium, if required, have been forwarded through channels by the appropriate due dates.

FEBRUARY

Send Founders Day freewill offering through channels to district PTA, when collected. The event may be held during a month other than February.

Register for convention.

MARCH

Ensure all per capita dues have been forwarded through channels.

APRIL

Issue convention checks for authorized expenditures for elected delegates.

Begin transitioning with newly elected financial officers.

MAY/JUNE

Attend workshops for financial officers, when offered.

Submit books and financial records to outgoing auditor for end-of-term audit, as stipulated in the bylaws (after close of fiscal year).

Give financial records and materials to the incoming financial officer (except those in audit).

Obtain new bank account signature cards to assist incoming officers. The treasurer-elect should contact the bank to determine the requirements for changing authorized signers.

Prepare Annual Financial Report that reflects the fiscal year and term of office, if different. Prepare and file tax returns (end of fiscal year). The fiscal year is listed in the bylaws or on previous tax returns. The recommended fiscal year is July 1 to June 30.

Ensure all per capita dues have been forwarded through channels so that there are no audit exceptions.

Other pertinent dates should be added (or adjusted) to the calendar to meet time frames specific to each PTA and fiscal year.

 

When there is no financial secretary, these duties may be assigned to the treasurer or another officer.

Give a receipt for all monies received for the association and remit at once to the treasurer or deposit immediately in a bank approved by the executive board. Give a copy of the deposit slip to the treasurer.

Keep an accurate record of all receipts and payment authorizations for the treasurer’s financial records.

Prepare all payment authorizations as approved by the executive board or the association (if required by the bylaws).

Prepare and present a Financial Secretary’s Report at association and executive board meetings and at other times when requested by the association. The report must include an accurate record of all receipts, deposits and authorizations for payment.

Report all funds deposited to the treasurer. These totals shall be included in the Annual Financial Report to the association.

Perform such other duties as may be delegated to the financial secretary by the president or treasurer.

Attend the California State PTA convention finance workshops.

Attend council or district PTA workshops and trainings, when scheduled.

Financial records should be put in order for the financial review process shortly before the end of the term of office. The financial review must be completed as quickly as possible. The outgoing treasurer cannot pay bills after the books are closed for financial review or after the term of office ends. Upon assuming office, the incoming treasurer may deposit funds in the PTA bank account and pay authorized requests for reimbursement bills as needed but should avoid paying new bills if possible until the review is complete.

The outgoing treasurer is responsible for preparing the Annual Financial Report, ensuring all tax forms are filed, uploading financial reports and tax returns to the document retention system, preparing a Treasurer’s Report from the last association meeting to the end of the term, and compiling a list of payments made between January 1 and June 30 that are subject to 1099 and Workers’ Compensation reporting. See Records Retention Schedule and Destruction Policy.