Bank Statements

PTA bank statements should be sent to the PTA’s permanent address, usually the school. The treasurer should check regularly for the bank statements.

Most banks will prepare and mail bank statements monthly on the date requested by the PTA. When establishing the statement date, take into consideration the timing of executive board and association meetings. While the bank statement should be used to help create the Treasurer’s Report, it may be necessary to include on the Treasurer’s Report income received and checks written after the most current bank statement date. The end date for each Treasurer’s Report should be just before the date of the meeting so that the information given to the executive board and/or association is as accurate and up-to-date as possible.

Try to use a bank that returns canceled checks or copies with the bank statements. This will facilitate the audit process. If canceled checks are not returned, the bank must provide photocopies or copies that may be printed from online access. If the cost of obtaining a paper bank statement is cost prohibitive for the PTA, printing the statement from the PTA’s online access is appropriate. If electronic statements are available a copy should be sent to the elected officer who is reviewing the bank statement monthly.

Another elected officer who does not sign checks (often the auditor) shall open and review the bank statement prior to presentation to the treasurer for reconciliation. Using the treasurer’s financial report, minutes and the bank statement, conduct a five minute audit.

Five Minute Audit Procedure

Step 1:  Look at the checks. Verify

  • Two signatures on every check
  • Payee, amount and date match the treasurer’s report
  • Purpose of payment is included in the check’s note section

Step 2:  Look at the deposits. Verify

  • Date and amount match the treasurer’s report
  • Deposits have been timely

Step 3:  Assure no online payments or withdrawals have been made using a debit/ATM card.

Step 4:  Reconcile the bank statement to the treasurer’s report.

  • Make adjustments for checks that have not cleared and deposits not shown.

Step 5:  Contact the treasurer to determine the source of the error(s). Corrections, if required, are included in the next treasurer’s report. Report findings to unit president, treasurer and auditor (if the reviewer isn’t the auditor).

The five minute audit will not reveal that the treasurer allocated income incorrectly, but it will point out that a deposit showing on the treasurer’s report didn’t actually make it to the bank or that a check cashed by the bank didn’t show up on the treasurer’s report. If this happens, ask more questions and investigate further.

Reconciling Bank Statements

Reconcile the monthly bank statement and compare with the check stub/register balance promptly to ensure that bank and financial records are correct. Identify differences, note outstanding checks and determine the adjusted bank balance at the end of the month. This establishes the funds available against which checks may be written.

After reconciliation, file all supporting receipts, details of deposits, canceled checks in numerical order and duplicate deposit slips, with the statement. Make a notation on the check register of the last canceled check returned, indicating that the account was reconciled. Place all items on file for audit.

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