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Download the Treasurer Job Description

Key Role – Treasurer

• Maintains permanent records to track unit funds and financial transactions
• Chairs budget committee and prepares annual budget for adoption by the association
• Pays all PTA bills as authorized by board or association
• Prepares reports for every board and association meeting and an annual financial report
• Ensures taxes and reports required by PTA bylaws, insurance or federal and state governments are completed and submitted by the due dates

Getting Started

Preparation – Review files and financial records from last term to better understand the scope of your new position. These materials should include:

• Treasurer’s book/ledger, spreadsheets and records
• Checkbook for PTA bank account
• Check endorsement stamp, if available
• Receipt book
• Remittance forms to transfer money to council and district treasurers
• Monthly Treasurer’s Reports, Annual Financial Reports and Budgets
• Federal and state tax records and government filings

Learn more about PTA policies, procedures and best practices for handling and managing unit funds.

It’s also worthwhile to talk to the former treasurer to get advice and tips about your new role.

If a computer program or online system is used to maintain PTA financial records, take time to discuss how files can be transferred, accessed and saved.

Schedule Meetings – Meet with other incoming board members such as the president, secretary, financial secretary and financial reviewer to talk about how you can work effectively together. Check the Toolkit, Finance Chapter, to learn more about who does what in handling, recording and tracking PTA funds.

Provide information to the board-elect on how to collect and count PTA funds and how to file expenses using best practices and procedures.

As treasurer-elect, arrange to meet with the budget committee to prepare a budget as a financial plan for the upcoming PTA year.

Important Tasks – At the start of the term, remember to update the signature cards for any PTA bank account and any usernames and passwords for access to online financial programs and services.

How Tos

Managing PTA Funds – All board members share a fiduciary responsibility to manage PTA money well on behalf of the association. And, as one of three required officers for a PTA, the treasurer is the authorized custodian of PTA funds.

Start the year right by getting organized. Create a filing system to maintain and manage financial records such as invoices, receipts and authorizations for payment.

Remember to use PTA policies, procedures and best practices for handling financial transactions. This will help to ensure good management of PTA funds.

To sustain the financial health of a unit, the treasurer works regularly on the following tasks.

Monthly Activities

Tracking Funds:

• Maintains a permanent record to track PTA income, receipts and disbursements
• Submits written report for board meetings, detailing income and expenses since the last meeting

Collecting Funds:

• Ensures monies are counted by two PTA members, using Cash Verification Forms
• Receives funds collected by other PTA volunteers and issues receipts
• Makes deposits of money and checks immediately in a PTA bank account, retaining deposit slips

Disbursing Funds:

• Receives itemized bills, sales slips and invoices for payment by check
• Prepares authorizations for payment, signed by the president and secretary
• Issues checks with two signatures to pay bills as directed by the board or association
• Keeps PTA check book up to date to show current balance
• Reconciles monthly bank statement promptly
• Tracks membership dues collected and remits per capita dues to council/district PTA

Annual Tasks:

• Chairs budget committee and prepares budget for adoption by the association
• Presents written report for each association meeting throughout the year, detailing income and expenses since the last meeting
• Prepares an Annual Financial Report, covering the current fiscal year
• Ensures taxes and reports required by PTA bylaws, insurance or federal and state governments are submitted by the due dates and uploads to the document retention system:
  • Unit Budget
  • Financial Reviews
  • Payment for Insurance Premium
  • Funds collected for the Founders Day Free Will Offering
  • Workers’ Compensation Annual Report
  • Copies of federal and state tax filings and government reporting forms
  • Copy of Registration Renewal Fee Report (RRF-1) and CT-TR-1 form (if applicable) filed with the California Attorney General’s Registry of Charitable Trusts
• Submits financial records for financial review, when a financial officer or check signer is replaced and when directed
• Preserves financial records as indicated in the PTA Retention Policy in the California State PTA Toolkit to pass on to the next treasurer

Did you know? … PTA Board Members:

• Adhere to PTA financial procedures as outlined in Bylaws and State and National PTA guidelines
• Protect members’ privacy by utilizing member information for PTA work only
• Attend PTA sponsored workshops or trainings
• Maintain a current procedure book to pass on to a successor, in hard copy or electronic format
• Work together as a team to improve the lives of all children and their families

Other Useful Information

Resources:

California State PTA – www.capta.org

• PTA Leaders tab and more
• California State PTA Toolkit
• Running Your PTA Made Easy
• Insurance Guide – Also mailed annually to PTA presidents

Online Services:

• Officer Contact System – To enter officer and board member information and generate useful reports
• e-Bylaws – To revise and update PTA unit Bylaws
• Tax Filing Support Center – To help units meet Federal and State reporting requirements
• MyPTEZ – To handle PTA accounting needs and generate financial reports
• TOTEM – ELECTRONIC MEMBERSHIP SYSTEM – To join and renew membership and for PTAs to manage membership

National PTA – www.pta.org

• Run Your PTA tab and more
• E-Learning Workshops
• One Voice Blog

Model Practices for Districts, Councils and Units

It is very important that certain records be retained. The current letter of determination, the current bylaws and standing rules approved by the state parliamentarian and the articles of incorporation (for incorporated PTAs) should be readily available at all times.

A policy was adopted by the State Board of Directors and Board of Managers November 2016 and meets all applicable state and federal statutes as it relates to document retention and non-profit organizations. This policy is intended as a guide for model practices at the local district, council and unit level.

Purposes of the Policy include (a) retention and maintenance of documents necessary for the proper functioning of local PTA as well as to comply with applicable legal requirements; (b) destruction of documents which no longer need to be retained; and (c) guidance for the Board of Directors (the “Board”), officers, and other constituencies with respect to their responsibilities concerning document retention and destruction.

Please refer to the Toolkit online at toolkit.capta.org for the complete policy recommended for all districts, councils and units.

RETENTION SCHEDULE

PERMANENT STORAGE

Accounting & Finance

• Annual Financial Statements & Financial Review Reports
• Cancelled Checks – special, such as loan repayment
• General Ledger

Contributions/Gifts/Grants

• Contribution Records
• Documents Evidencing Terms of Gifts

Governance

• Articles of Incorporation & Amendments
• Bylaws & Amendments
• Minute Books, including Association, Board & Committee Minutes
• Annual Reports & Returns to State & Federal Agencies
  • IRS 990N, 990EZ or 990
  • Franchise Tax Board 199N or Form 199
  • Attorney General –
    • RRF-1
    • CT-TR-1 (if applicable)
    • Raffle Reports (if applicable)
• Secretary of State SI-100 (if incorporated, filed biennially)
• IRS Rulings
• Licenses and Permits
• Employer Identification Number (EIN) Designation
• Any other correspondence with State or Federal Agencies

Electronic Mail (Email)

• Emails considered important or of lasting significance

Retirement & Pension Records

Insurance

• Property, D&O, Workers’ Compensation & General Liability Insurance Policies
• Insurance Claims Records

Legal Correspondence

10 YEAR STORAGE

• Personnel Records
• Employee Contracts
• Personal Property Leases

7 YEAR STORAGE

• Accounts Payable
• Accounts Receivable
• Bank Statements, Reconciliations & Deposit Slips
• Cancelled Checks – routine
• Credit Card receipts
• Employee/Business Expense Reports/Documents
• Interim Financial Statements
• Grant Records

3 YEAR STORAGE

• Conflict/Whistleblower forms

2 YEAR STORAGE

• Hard copy correspondence and internal memoranda – routine matters
• Electronically stored documents – routine matters

12 MONTH STORAGE

• Emails – routine

This section defines or explains terms that financial officers and chairmen may encounter in their PTA work.

• Approval by Membership – The requirement that all expenditures, programs and projects, including those specified in the budget, must obtain approval and/or ratification by the membership. All approval of expenditures, programs and projects MUST be recorded in the minutes.
• Authorization for Payment – An authorization for payment documents approval to pay bills for services or supplies, or reimbursement to a member for expenses. After approval by the association, the completed authorization for payment permits the treasurer to write checks. All bills, receipts and invoices should be attached to approved authorization.
• Bylaws – Specific rules of operation for the orderly conduct of business adopted by vote of the members. All PTA bylaws have certain specified, starred sections in common which cannot be changed. Any change in bylaws requires approval of the state parliamentarian, a 30-day prior notice and a two-thirds vote of the membership.
• Cash Verification Form – A form to document receipt of coins, currency and checks from membership, fundraisers, and donations, which protects and safeguards volunteers’ handling of PTA funds.
• Carry-over Funds – These funds represent the amount which is set aside to begin operations at the beginning of the next PTA fiscal year, prior to the onset of fundraising activities.
• Certificate of Insurance – A document issued by the insurance broker certifying that an insurance policy covering general liability is in force. A Certificate of Insurance is emailed to all unit, council, and district PTAs in good standing. A copy may be obtained by contacting the California State PTA insurance broker.
• Channels – The formal communication route through the association to ensure that each level within the association is informed. In PTA, the channel is from the unit to the council (if in council) or from the unit to the district PTA (when there is no council), from the council to the district PTA, and from the district PTA to California State PTA.
• Commingled Funds – Funds from two organizations deposited together. Because a unit is a 501(c)(3) nonprofit association, it must comply with all Internal Revenue Service (IRS) requirements, regulations and laws. The IRS considers all funds in PTA accounts to belong to the association regardless of source. A PTA must handle only those funds over which it has full control and the total amount must be declared as gross income to the PTA. All funds in the PTA account must have association approval for disbursement.
• Contract – A legally enforceable agreement between two or more persons or organizations. Contracts must be approved by the PTA membership before being signed by two elected officers, one of whom must be the president.
• Contributions – Donations of money, property, or services received by the PTA from individuals or businesses. PTAs must follow Internal Revenue Service guidelines for receipts for contributions.
• Embezzlement – Stealing of money entrusted into one’s care by means of fraud for one’s own use.
• Facilities Use Permit – A permit required by most school districts that when approved authorizes the PTA to use school site facilities.
• Fiscal Year – The financial accounting period established by the PTA, and identified in the Bylaws for Local PTA/PTSA Units, Article XIII, Section 7, as a time for the association to close its financial books and records for the past 12-month period. The IRS is notified of the fiscal year at the time of organization when IRS Form SS-4 is submitted.
• Founders Day Freewill Offering – A freewill offering commemorating the founders of PTA. Contributions are forwarded through channels to California State PTA and set aside in a special fund for leadership services. The contributions are considered as “funds not belonging to the unit, council, or district” and are not included as income in the budget.
• Gifts to Individuals – A personal gift to a PTA member or school staff. Gifts to individuals cannot be paid for with PTA funds. Personal gifts include gift cards, gifts for baby showers, secretary’s day, bereavements, weddings, or birthdays. If the unit wishes to recognize an individual, donations must be collected as freewill offerings and the money maintained separately from PTA funds.
• Gifts to Schools – Gifts to the school that benefit the largest number of students possible. Be sure to check with the school district before purchasing any materials for the school. Gifts should be in the form of a donation, presented and accepted by the school board at a school board meeting, and recorded in the school board minutes. Always use a fiduciary agreement.
• Good Standing – The term applies to units, councils and districts that have met all requirements specified in the bylaws, which includes remittance of insurance premiums and membership per capita to California State PTA by the established due dates.
• Grants – A specific set of dollars given by businesses, foundations, and corporations to an organization to perform specific functions. Projects for which PTA is seeking grants must promote the Purposes of the PTA and be relevant to the goals of PTA.
• Gross Receipts – The total amount of receipts before any deductions are taken or expenses are paid. For the purpose of completing the IRS Form 990, monies forwarded through channels to the California State PTA office are not considered gross receipts. This includes membership per capita, Founders Day freewill offerings, and insurance premiums.
• Hold Harmless Agreement – An agreement in which the signing party assumes responsibility for all acts and all liability for any injuries that occur related to an event. PTA MUST NOT SIGN A HOLD HARMLESS AGREEMENT WITHOUT PERMISSION FROM AIM INSURANCE. California State PTA insurance does not cover vendors, concessionaires, or service providers; these entities must provide Evidence of Insurance to each PTA unless annual Evidence of Insurance has been filed with the California State PTA Insurance Broker. A Hold Harmless Agreement may be found in the Insurance Guide.
• Membership Per Capita – The amount of money that must be forwarded through channels for each membership received in the unit in order to be considered a unit in good standing by California State PTA.
• Minutes – The permanent legal record of all action taken by the association and the executive board. All financial reports become a part of the minutes.
• Noncommercial Policy – A policy requiring that the name PTA, a registered service mark, or the names of PTA officers shall not be used in conjunction with the commercial activities of other organizations including, but not limited to, the promotion of their goods and services.
• Ratification – The approval by the membership of an action taken by the PTA executive board as specified in Bylaws for Local PTA/PTSA Units, Article VIII, Section 2b.
• Reconciliation of Funds – The process of bringing into agreement the bank balance as shown on the bank statement, the checkbook ledger, and the check register. The purpose is to ensure that the bank records and the association’s financial records are correct, to identify outstanding checks, and to determine the actual balance against which future checks may be drawn.
• Reimbursement of Expenses – Allowable out-of-pocket officers’ expenses shown as a line item on the budget adopted by the association are reimbursable. Reimbursement is made upon the submission of an expense statement and/or receipts.
• Sales Tax – A tax imposed on the purchase of products. Units are considered consumers by the California State Board of Equalization and they are not required to charge sales tax on merchandise sold. Units do pay sales tax on the price of merchandise purchased for resale or use.
• Scrip – A coupon which may be redeemed in lieu of using cash at the store that issued the scrip. Scrip is purchased, usually from grocery stores, in large amounts for a discount off the face value. The PTA sells the scrip at the full value, raising funds for the unit. Many companies now offer electronic e-scrip.
• Scholarships – Funds to assist students in furthering their educational objectives. The scholarship program, including the amount and number of scholarships to be awarded, must be approved by the membership.
• Sponsorship – Financial support received from a business. The law permits a PTA to receive corporate sponsorship income tax free, if the sponsorship is linked to a specific event and the event is held once per year. The PTA gives the corporate sponsor an acknowledgment of thanks in return for the sponsorship.
• Unallocated Reserve Funds – The amount remaining after making allocations for budgeted programs and activities, and may be used to cover any unexpected or unplanned expenses in the current fiscal year. The association must adopt a budget amendment to transfer funds from Unallocated Reserves to a specific budget category prior to disbursing funds.

This agenda is a guide only, adaptable to meet unit’s needs. The agenda should be made in triplicate. Give copies to the (recording) secretary and to the parliamentarian. Distribute or post for the membership, the proposed budget and proposed annual programs with the agenda.

A newly-elected president may want to write everything out in detail. Check off each item as it is completed and nothing will be forgotten. The presiding officer stands while conducting business and sits (unless unable to be seen by the audience) while others are participating.

When considering and carrying out large fundraisers, keep the following concerns in mind:

• Is the fundraising project related to PTA’s educational, charitable and philanthropic purposes as a tax-exempt organization?
• Will the proceeds of the fundraiser be designated for specific approved projects that meet the purposes of PTA? Do not hold a fundraiser if the PTA has not determined how the funds will be spent.
• Does the project violate PTA’s noncommercial policy?
• Does the association have enough volunteers?

Community betterment is one of the chief aims of PTA endeavors. This can be brought about through cooperation with other agencies that are doing child welfare work in the community.

Unit, council, and district PTAs should not enter into permanent cooperation with any agency. PTAs may cooperate with an agency by publicizing and distributing information about an event at meetings and through newsletters.

PTAs may cooperate on special projects with any agency whose purposes and methods are consistent with PTA policies. If, for any reason, the project cannot be completed during the administration in which it was authorized, the new administration should review it before approval.

PTAs may cooperate with any agency through committees. They shall not set up a cooperating committee as a permanent or continuing committee. A cooperating committee continues only through the life of the special project upon which cooperation is advisable.

Co-sponsorship involves the development and planning of an event with other groups, agencies, or organizations. PTAs should participate actively in each cooperative undertaking to ensure that goals and procedures are consistent with the Purposes, basic policies and principles of the PTA. When an event requires the signing of contractual agreements, the responsibilities, financial obligations, and liabilities must be clearly defined, discussed, and authorized by the co-sponsoring PTA prior to the signing of such contracts. For protection in the event of an accident or lawsuit, each co-sponsoring group must have its own adequate liability insurance. Prior to the event, all printed information, handouts, and selection of speakers should be reviewed and approved by the co-sponsoring PTA’s executive board.

The right of members of California State PTA to be official representatives of California State PTA in public relationships (including the publishing of names on the stationery of other organizations) shall be conferred only by the Board of Managers or the California State PTA president. A person who renders service to another organization as a representative of California State PTA may accept an honorarium to be donated to California State PTA.

PTA funds shall not be used for expenses of those who have accepted appointments to term committees in outside agencies without approval of the California State PTA Board of Managers.

Coordinating with Community Groups

The policy of the National PTA encourages participation of PTAs in community groups. It is of paramount importance that PTAs be a part of community councils having goals similar to those of PTA.

The PTA unit, council or district shall make sure that the proposed rules of procedure or bylaws of the group do not conflict with the bylaws of the association.

Community groups with which the PTA may cooperate are those that are not set up as action groups nor to operate programs, but rather to pool information and develop resources for service to children, youth, and families in the community. The abilities and strengths of each organization can be used efficiently to solve problems that require combined influences and joint planning.

Each organization represented in the community group retains its own identity and is not committed to a course of action outside its own field of operation. The PTA unit does not “join” another organization. Participation in these groups should be through an official representative of the PTA. It is the responsibility of this representative to inform the PTA of activities of the community group, to vote on routine organizational business of the group, and to act on policy matters under the direction of the PTA being represented.

Many community groups have operating budgets to cover staff and other expenses. PTA policies concerning legitimate use of PTA funds should be strictly observed (Fiduciary Agreements and Gifts to Schools, Budget, Financing Programs at the School, Budget (Sample)). It is the responsibility of the district PTA to determine an equitable amount that may be budgeted toward the expenses of community groups. All contributions to these groups require the approval of the association.

Limits of Cooperation (Conditions Governing Sponsorship of Youth Groups)

California State PTA considers the work done by youth-serving organizations to be of tremendous value.

Conditions for Sponsorship

Reinforcement of the work of youth groups should be given through moral support and encouragement, helping to secure qualified and able adult leadership, helping to arrange for a meeting place, and providing opportunities for youth service. No obligation is assumed for, nor shall the PTA be responsible or liable for, the actions of any individual acting as a leader, a participant in, or in some other capacity for a sponsored group.

One member of the executive board of the sponsoring PTA shall serve as coordinator and representative of any PTA -sponsored youth groups. The local unit has certain responsibilities toward any group with purposes so closely related to its own program. It should seek to arouse interest in the need for youth groups and encourage formation of such groups and stimulate leadership.

The PTA assumes no obligation, expressly or otherwise, responsibility, or liability for the competence, the actions, or the omissions of any person or persons who may have been or may become active as a leader, participant, or otherwise, in any organization or group sponsored by the PTA.

The PTA assumes no obligation to give financial support to groups that it sponsors, including payment of individual dues or the purchase of uniforms or equipment. The PTA may help provide suitable fundraising opportunities for youth groups, giving publicity to their projects and recognition to their achievements.

In case of need, the unit may vote to hold a special fundraising project to provide such items as group equipment, handicraft supplies, or camperships.

To avoid misunderstandings and to facilitate harmonious relationships between the PTA sponsor and the youth group, a copy of the conditions governing sponsorship should be permanently attached to or be a part of every sponsorship agreement (Application for Youth Group Sponsorship or Renewal).

Boy Scout Groups

California State PTA continues to support scouting and the opportunities scouting provides for young people. However, the Boy Scouts of America seeks local organizations as sponsors (signing charters) and the Scouting Annual Charter Agreement includes the following responsibilities for that organization:

• Conduct the scouting program according to its own policies as well as those of the Boy Scouts of America,
• Include scouting as part of its overall program for youth and families,
• Appoint a member of the organization to coordinate all scouting operations at the site. He or she will represent the organization to the scouting district and serve as a voting member of the local Boy Scout council,
• Select a scouting committee (minimum of three) of parents and members of the organization who will screen and select local scouting leaders.

While an individual may choose to volunteer with Boy Scouts of America or other youth groups, California State PTA directs local PTA units, councils and districts: DO NOT SIGN ANY CHARTER OR YOUTH GROUP SPONSORSHIP OR RENEWAL FORM WITH THE BOY SCOUTS OF AMERICA as:

• A PTA representative may not commit the PTA to the bylaws and other regulations of Boy Scouts of America.
• Local PTA leaders are generally not qualified to screen and select the local scouting leaders.
• The California State PTA insurance program provides no coverage for a PTA leader sitting as a representative to the scouting council nor for sponsoring another organization.
• The California State PTA insurance program provides no liability coverage for the actions of any individual acting as a leader, a participant in, or in some other capacity for another organization.

When planning a meeting, consider the goal of the meeting and how the meeting can be structured to accomplish that goal. The president and the executive board plan the meeting ahead of time and:

• Prepare the agenda and distribute written notice to members (See: Sample Agenda Fig. R-2).
• Make the necessary preparations.
• Attend the meeting to demonstrate their commitment.
• Start and end the meeting on time.
• Give members an opportunity to participate in the decision making at the meeting.
• Streamline minutes and financial reports. Duplicate, distribute or post, wherever possible.
• Use surveys to evaluate the meeting to improve future meetings.

When conducting business at the meeting, be aware of which individuals are voting members. The privilege of making motions, debating, and voting is limited to eligible members. Eligible members are those whose dues are paid and have been members for at least the previous 30 days. Only eligible voting members count toward the quorum. It is the responsibility of the secretary to have an updated membership list.

It’s also important to be proactive in setting a welcoming and inclusive environment at association meetings for families from all neighborhoods. This might include organizing and providing:

• Greeters at the door
• Handouts/signs in home languages and translators
• Name badges
• Door prizes
• Babysitting
• Snacks and social time before or after the meeting
• Board members scattered among participants
• Time in the agenda for questions and discussion

You may consider study groups, grade-level gatherings, special information sessions, or work parties (e.g., to prepare materials). The most important consideration is whether or not the planned meeting will increase involvement in the organization and ultimately serve the goals of the PTA.