Search Results for: financial review

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 the proposed programs, fundraisers and budget are approved by the 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; this may be the financial reviewer.
• Conducts at least one financial review annually, in accordance with the bylaws. Semi-annual financial reviews at mid-year and year-end are the best practice.  Financial reviews not conducted by a qualified accountant are reviewed by a financial review committee.
• Files the appropriate IRS Form 990annually 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. The per capita (membership funds not belonging to the association) for manual members added to the California State PTA E-membership program is remitted through channels.
• Remits California State PTA insurance premium to the California State PTA insurance broker before December 20^th.
• Completes and submits the  Workers’ Compensation Annual Payroll Report Form and remits any additional premium to the California State PTA insurance broker 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.

Financial officers are elected to manage the fiscal operations of the unit, council and district PTA. These officers include a treasurer (required) and a financial secretary (optional). All unit, council and district PTAs are required to have a financial reviewer who may be elected, appointed, or hired in accordance with bylaws. Job duties are detailed in the PTA bylaws, standing rules and job descriptions – consult these for further information.

Upon assuming office, the incoming treasurer obtains the following from the outgoing treasurer: all PTA-owned supplies, ledger, checkbook, tax records, financial review copies,  backup copy, master copy or login information for the accounting program if the books are maintained on a computer, and all other treasurer materials including the procedure book from the previous office holder. Additional records may be obtained from the bank and supplies can be purchased from the California State PTA store. The new treasurer must also contact the bank and arrange for new signature cards for checking and savings accounts to be filed. Banks require minutes of the election meeting recording names of new officers. The incoming treasurer should contact the PTA’s bank to determine what records are needed and the specific process required to change signers.

The items listed above are necessary for the financial operation of the association. When a new unit is established, the treasurer should request assistance from council or district PTA in obtaining them.

The outgoing treasurer cannot pay bills after the books are closed for financial review or after the term has ended. Books being financially reviewed may not be available immediately. California State PTA recommends that if the financial review is not completed within two (2) weeks after the end of the term of office, the president may appoint a committee to immediately review the books. The same time frame must be followed for the optional semiannual financial review. Upon assuming office, the incoming treasurer may pay authorized bills and deposit funds in the PTA bank account before the financial review is completed but should avoid paying new bills if possible until the review is complete.

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.

Financial Officers
Treasurer Duties
Financial Secretary Duties
Financial Reviewer Duties
President Financial Duties
Secretary Financial Duties
Vice President/Chairman Financial Duties
Financial Officer Transition

Download the Financial Secretary Job Description

Key Role – Financial Secretary

• Works closely with the treasurer and other financial officers in handling PTA funds
• Keeps a record of all PTA funds collected, deposited and disbursed
• Prepares monthly and annual financial reports

Getting Started

Preparation – To know more about your new position, review files and materials from last term that should include:

• Standardized ledger
• Receipt book
• Remittance forms to transfer money to council and district treasurers
• Check endorsement stamp, if available
• Monthly and Annual Financial Reports

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

Schedule Meeting – Meet with the treasurer and financial reviewer to discuss how you can work effectively together. Check your unit bylaws to see who does what in handling PTA funds.

How-Tos

As an elected officer, your main duties are to receive, record, deposit and report on monies collected by your unit. Here are some quick tips to get started:

Receiving Funds:

• Follow PTA financial procedures in handling funds
• Use Cash Verification Form, in California State PTA Toolkit, when counting funds
• Check amounts for accuracy and issue a numbered receipt for each financial transaction

Recording Funds:

• Record receipts in the ledger noting date of receipt, number of the receipt issued, amount, from whom received, and for what account (e.g. membership, fundraising)
• Note any refunds or disbursements and prepare authorizations for payment. Or, if this is the secretary’s job, provide them with the information needed to prepare them.
• Give the treasurer itemized bills, sales slips and invoices for payment by check

Depositing Funds:

• Ensure that money and checks are deposited immediately in a PTA account
• Give a duplicate deposit slip and remittance form that accounts for all money received to the treasurer. Or, if the treasurer handles deposits, give the funds collected to them for deposit and receive a numbered, dated receipt for your records.

Reporting Funds:

• Prepare monthly and annual financial reports of monies received, deposits made and authorizations for payment issued to give to the president, secretary and other financial officers
• Submit all records for financial review, or when a financial officer is replaced, and whenever a financial review is deemed necessary

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 and files 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
• California State PTA  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

Online payment systems (i.e., Electronic Funds Transfer (EFT), Automated Clearing House (ACH), Bank Bill Pay Services) are an approved method of paying expenses. For Electronic Funds Transfer (EFT) and Automated Clearing House (ACH) payments, it is a best practice, but not required, to have a separate bank account established to restrict Internet access into the general checking account with account signers as listed in the minutes. Use of this account should be limited to online payment collections and online payment of expenses. An “Authorization to Transfer Funds Between Accounts” form must be used to transfer funds into the Internet account from the general checking account. If using the Bank Bill Pay Service, a separate account is advisable. All expenses must be accounted for and reported in the monthly treasurer’s reports. Any dedicated account established requires a separate financial review. An Authorization for Payment Via EFT/ACH/Bank Bill Pay Services form signed by two authorized check signers must be completed for all Electronic Funds Transfer/Bank Bill Pay Service payments.

Cyber Liability Insurance Coverage is recommended to protect against possible losses due to the use of Electronic Funds Transfer/Automated Clearing House/Bank Bill Pay Services.

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

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

5 YEAR STORAGE

• Insurance Claims 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

The responsibilities of financial officers are specified in the association bylaws and are also established in California State PTA policies and procedures. Additional information can be found in the Finance and Job Descriptions chapters of the Toolkit. The Toolkit can be found on the PTA website, www.capta.org.

The treasurer, financial secretary and financial reviewer are generally considered the financial officers. The president, secretary and vice presidents/chairs also have specific financial responsibilities. Every PTA board member has a fiduciary responsibility to:

• Protect the assets of the organization. These assets include cash, assets, volunteers and the PTA’s reputation.
• Ensure compliance with all laws. These include federal and state laws as well as the policies and procedures of the PTA.
• Ensure the assets are used to meet the needs of the children and members served by the PTA.
• Ensure continuity of the association by preserving assets for the future and not encumbering future boards.
• Ensure the association remains transparent – all the members are given the opportunity to participate in decision making and to view financial reports.
• Ensure the association is carrying out the purposes of PTA. These include increasing family engagement, advocacy and increasing communications between home and school. Fundraising is not a purpose of PTA, but PTAs may fundraise to provide PTA programs. Councils and districts have an additional purpose, which is to train and support local associations and their officers.

PTA officers/chairs need to understand why they are doing the things they are doing and be committed to doing them correctly and completely.