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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.

California law establishes procedures and requirements for filing reports on election campaign expenses. A PTA that participates in a campaign to pass or defeat any local school bond, parcel tax or local or statewide ballot measure must file a report with the State of California Fair Political Practice Commission.

For more information on reporting requirements, go to www.fppc.ca.gov.

Mismanagement of funds refers to the potential loss or misuse of PTA funds and raises questions about the integrity of the individual(s) in charge of the PTA funds. PTA funds are protected by following correct financial procedures. Each member of the PTA executive board has a fiduciary responsibility (required by the IRS of all nonprofits) to safeguard the association’s assets and potentially clear the individuals who may be involved.

There are several signs of possible mismanagement: lack of receipts and/or treasurer’s reports; payments made in cash rather than by check; missed meetings by financial officers; and unanswered phone calls or mail. However, these are merely signs, not proof of wrongdoing, so be discreet. Do not make any implicit, explicit, oral or written statements or accusations. Such actions could result in a lawsuit for libel or slander.

Notify the district PTA president or California State PTA vice president for leadership services and/or state treasurer. With guidance from one or more of these PTA leaders review the information, and determine the appropriate course of action. Specific PTA procedures are outlined in the California State PTA Council and District Leaders Guide, which is available to council and district PTAs.

Possible mismanagement/embezzlement of PTA funds is a PTA responsibility and therefore, PTA policies and procedures must be followed. The principal or other school district personnel shall not determine or take any other course of action for the PTA.

Do not make a direct accusation. Do not accept any offer of direct repayment from an individual, unless payment of the full financially reviewed amount is to be made with cash, certified check or money order. It is important to report the loss to the district PTA and insurance broker right away.

Embezzlement, the stealing of money entrusted into one’s care by means of fraud for one’s own use, is considered to be the same as theft under the law. Theft in any form is a violation of the law and should be handled as a serious offense. If money is stolen from an individual’s car or property, a police report should be filed immediately and contact made with the individual’s insurance company to determine coverage.

If the PTA is an employer, it must follow rules set up by the IRS, Social Security Administration, and the California Employment Development Department (EDD).

Employers must:

• Make timely payroll withholding deposits;
• Make quarterly federal and state payroll withholding reports within one month of the close of each payroll quarter, using IRS Form 941 and State Form DE-6;
• Issue IRS Form 1099-NEC to all independent contractors by January 31, if the PTA pays $600 or more during the calendar year to any unincorporated business or person for services rendered or in payment for a grant, award, or scholarship; Form 1099-NEC is not required to be issued to corporations or to those paid less than $600;
• Issue IRS Form W-2 to payroll employees by January 31 for the previous calendar year;
• Report IRS Form 1099 and Form W-2 information to federal and state agencies as well as the Social Security Administration by February 28 for the previous calendar year, using IRS Form 1096 (Annual Summary and Transmittal of US Information Returns); and
• Report individuals who are independent contractors to the California EDD on State Form DE 542, Report of Independent Contractor(s) within 20 days of making payments of or entering into a contract for $600 or more within any calendar year.

California law mandates that every employer shall establish, implement, and maintain an effective Injury and Illness Prevention Program. Any PTA that pays wages directly to an individual and reports said employment on the Workers’ Compensation Annual Payroll Report must comply with this mandate.

Those unit, council, and district PTAs maintaining an office or employees performing at a regular place of business must post an Employee Acknowledgment Form to meet this requirement. The material must be kept current and filed as a part of the permanent record of the association. Each employee must read and sign the Employee Acknowledgment Form in duplicate. The original must be kept as a permanent record, and the copy must be sent to the California State PTA office.

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.

A PTA-sponsored Academic Enrichment Program designed as an extension of the school curriculum offers students an opportunity to expand their knowledge and academic experience.

Prior to implementation of any academic enrichment program the Insurance Guide must be consulted to ensure compliance with sanctioned activities. For insurance purposes, an enrichment program is intermittent in nature and does not continue on a daily basis over the duration of the school year. For any questions regarding general liability insurance, contact the California State PTA insurance broker whose number can be obtained from the Insurance Guide.

If a unit, council or district PTA chooses to sponsor activities that the insurance underwriter has not listed, the unit, council or district PTA must contact the California State PTA insurance broker and may have to purchase the necessary additional participant liability insurance for that activity, and the entire association (California State PTA and its unit, council and district PTAs) must be named as an additional insured. Please contact the California State PTA insurance broker for requirements for additional insurance. (Refer to the Insurance Guide.)

A special enrichment program study committee should be appointed by the PTA president to determine if a need for a specific academic program exists and to assess its potential value. A program must be acceptable not only to the PTA association but to the principal as well; therefore the committee should include the school principal, a PTA financial officer, a faculty member and other interested persons. Consideration should be given to the feasibility of the local Parks and Recreation Department providing such a program rather than the PTA.

TOPICS FOR CONSIDERATION

The program must be academic in content with defined goals. The PTA must monitor and evaluate the program to ensure that the goals are being met.

The instructor may be a volunteer or a paid professional. Qualification guidelines must be established for the instructor, and PTA may not hire a voting member of the board as an employee for enrichment programs.

If the instructor is to be paid, the budget must reflect this expenditure. There must be sufficient income from other sources, such as fundraisers or program fees, to meet this expenditure.

A fee may be charged. However, fees should be minimal. All interested children must be served and no child may be excluded because of inability to pay any fee.

The PTA treasurer may handle the bookkeeping or there may be a need for a project financial chairman, who provides written reports given at the regular meetings of the executive board and the association. Checks can be signed by designated elected officers only. All procedures outlined in the Bylaws for Local PTA/PTSA Units for the expenditure of funds must be followed.

The program should be held at a time when all interested students may attend, including those on bus schedules and those residing outside the school attendance area and those students “off-track” when the year-round school calendar is being followed.

Consideration must be given to where the program will be held and the site’s accessibility for all students.

Compliance with the Americans with Disabilities Act requires that the PTA make reasonable accommodations necessary to make the class accessible to students with disabilities. This may include determining that a private location or specialized medical training is available for the handling of student’s personal needs.

The PTA must be responsible for defining and implementing safety and emergency procedures.

When it has been determined that an enrichment program will benefit all children, the committee shall bring its recommendations, including how the program will be operated, to the PTA executive board for approval and recording in the executive board minutes.

In order to continue the program, it must be approved each year by the association.

If the program needs approval by the school district administration or the school board, the PTA must proceed accordingly to obtain the appropriate authorization. The committee responsible for coordination of the program must make a progress report at each executive board meeting and, periodically, to the association. Approval dates must be recorded in the association minutes.

If the program is held before or after school, on or off school grounds, a signed parent consent form must be on file for each student. There must be phone access for emergency needs. The instructor must use procedures established and monitored by the PTA for checking children in and out of the program. The insurance underwriter requires there be at least two unrelated persons 18 or over in attendance at all times.

It is strongly recommended that PTA fund an academic program by giving the monies to the school district as a gift to the school, in accordance with school district policies, instead of the PTA hiring instructors. If PTA votes to hire an instructor, refer to PTA as an Employer.

To reduce risk of exposure and protect California State PTA, California State PTA has determined that sponsoring certain programs is not permissible for PTAs and is not to be covered under the California State PTA General Liability Insurance Policy. Refer to the Insurance Guide for a listing of prohibited activities.

Grants are specific funds given to an organization to perform specific functions. Unit, council and district PTAs may apply for grants in order to fund many of their projects and programs. Businesses, foundations and corporations give grants to causes they consider worthwhile. When applying for grants, PTAs may want to stress the points that public schools produce future employees, and that donations or gifts are tax deductible, as PTA is a 501(c)(3) organization. Organizations like the American Cancer Society, March of Dimes, Kiwanis, and Lions Clubs will make funds available for projects that fulfill their goals, such as programs addressing child abuse or substance abuse prevention.

The project for which a PTA is seeking grant funds must be one that promotes the Purposes of the PTA, is relevant to the PTA’s goals, and has been approved by a vote of the membership. PTA members must be committed to following through with the stated goals of the program. The project should be one that will not commit the participation of succeeding PTA boards.

If the PTA is serious about seeking grants, find someone with expertise in writing grant proposals. The local school district may have a qualified staff member. Seek the guidance of people who are knowledgeable about the intricacies of writing proposals.

The first step is to gather information about possible sources of funding. These include federal and state governments, private foundations, community foundations, private individuals, and nonprofit organizations such as United Way. Unit, council, and district PTAs may apply for grants in order to fund many of their projects and programs.

Grant Writing

A grant writing chairman can be appointed by the president to coordinate PTA grant writing efforts. When a PTA is interested in applying for outside funds to help implement a PTA project, a committee should be appointed by the president to look for sources of funding and to prepare the proposal.

Grant Request Process

Contact the grant source in writing with a brief letter of intent explaining the project.

Request the grant specifications from the donor and follow them carefully.

Find out who is responsible for reviewing grants and send the proposal to that person.

Follow up with a phone call if the donor has not responded within six to eight weeks.

Seek a personal meeting to explain the PTA’s proposal further. Be open to questions. Be succinct. If the proposal is not funded, ask why.

Recommend revisions for future proposals.

Accept the final decision graciously. Always properly acknowledge the donor’s generosity when the request is funded.

Proposals

When writing a proposal, provide detailed information about the proposed project. Most grant proposals have a distinct format, but the information sought by donors is often the same:

• An introduction that describes the PTA association and its purpose;
• An overview of the project and its specific goals;
• A statement that defines the problem the project seeks to solve;
• Statistics that substantiate problem identification;
• The target population;
• The project’s value to PTA and to the school community;
• The proposed outcomes of the project;
• An explanation of the activities the grant will fund;
• A timeline for completion of the project;
• A description of how the project will be evaluated; and
• A proposed project budget that includes both expenses and in-kind services.

The grant writing chairman or committee should maintain a file of completed applications, individuals who are resources, and possible sources of funds to assist future committees. If a grant is awarded, the grant writing chairman is responsible for complying with the donor’s reporting requirements, including providing the unit’s IRS Employer Identification Number (EIN). A PTA may furnish a donor with an EIN if requested.

Verify that the donor can write the check to the name as it is stated on your bank account. Many companies issue the check to the PTA California Congress of Parents name and this may cause an issue at the bank unless your account has both versions of your PTA’s name on it.

The treasurer must track all expenditures carefully; this information is a requirement in all grant donor reports. Keep the association aware of the progress of the grant application process, and use the reports submitted to the donor to inform the association of the project’s implementation progress.

All action taken on grant applications or project implementation must be recorded in the PTA minutes.

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?