Signs of Good Financial Procedures

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 semiannual audit 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 auditor.
  • Conducts at least two audits per year, in accordance with the bylaws. Audits not conducted by a qualified accountant are reviewed by an audit 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 in accordance with council/district due date. District PTAs must remit to California State PTA office before December 20th. Remits Workers’ Compensation Annual Payroll Report Form and any additional premium through channels no later than January 31st.
  • 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.
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