Search Results for: financial review

Adopted March 1989 – Reviewed and deemed relevant April 2022 – Family Engagement Commission

California State PTA believes all children and youth are entitled to equitable privileges, equal justice, and equitable opportunities. In order for children to develop into mature, productive adult citizens, PTA believes they need:

• Stability in their family settings;
• Physical and social-emotional support conducive to healthy growth and development;
• Financial support to meet basic needs and, to the extent possible within the family’s means, to enrich the child’s development.

California State PTA believes the family is the basic unit in our society responsible for the support and nurturing of children. PTA further believes that both parents/guardians, whether living together or apart, have joint responsibility to support and educate their children, and to promote optimal development of each child. This means:

• Support of children until age 18;
• Support of children (until age 24) who are unmarried or otherwise unemancipated and who are students in good standing, attending high school or an accredited institution for higher learning or vocational training.

PTA supports programs that hold parents/guardians accountable for meeting these responsibilities.

Adopted April 2005 – Reviewed and deemed relevant May 2021 – Education Commission

California State PTA believes that California’s system of public higher education, including community colleges, the California State University, and the University of California, plays a critical role in the economic and cultural vitality of our state and nation. Investment in students’ postsecondary education enriches the lives of all Californians, and provides skilled workers to meet the needs of California’s global economy.

PTA strongly believes that every student who meets the established eligibility requirements must be allowed access to the appropriate level of California’s system of higher education; financial hardship should not prohibit eligible students from attending institutions of higher education and efforts should be made to provide financial assistance to students.

PTA supports increasing the number and amount of state and federal grants for students facing financial hardships, simplifying the application process for all forms of financial aid, improving the access to information on postsecondary financial aid, and expanding access to in-state tuition levels for California residents.

PTA further believes that schools and colleges should work together to facilitate articulation from secondary to higher education.

California State PTA recognizes that California’s institutions of higher education are vital to preparing qualified educators for California’s public schools. Californians must ensure that public schools of education have the resources to produce the teachers and administrators needed to staff pre-K through grade 12 public schools, and to prepare experts in the field of teaching and learning.

California State PTA supports adequate funding for California’s system of higher education to ensure that eligible students have access to a higher education and that California provides the qualified educators needed for our public schools.

Adopted March 2002 – Reviewed and deemed relevant December 2024 – Family Engagement Commission

California State PTA believes that high quality before- and after-school programs for all children and youth can provide engaging and enriching environments that improve academic achievement. Statistics show that such programs improve a number of student outcomes, including increased graduation rates and reduce the likelihood of arrest and incarceration.

California State PTA recognizes that a range of before- and after-school programs is needed to serve children and youth from pre-school through high school. Each program needs to be based on the particular needs of the young people in the community.

California State PTA believes the elements of a quality before- and after-school program include:

Program Design – With the development of academically focused programs that center on:

• An array of enrichment, cultural and recreational activities
• Activities that are developmentally and culturally appropriate for the children they serve
• Programs designed/available for underrepresented/disadvantaged students in order to Increase opportunity and decrease achievement gaps
• Career development, life skills training and financial literacy for middle and high school students
• Opportunities for children and youth to develop positive relationships with peers and adults
• Health and wellness through nutritional snacks, exercise programs and prevention information
• Adequate funding to make programs and resources affordable and accessible

Facilities and Environment – With programs that:

• Preferably, are school-based with efforts to coordinate facilities and equipment between school and program sites
• Comply with relevant health and safety regulations
• Have safe indoor and outdoor space sufficient for a diversity of activities
• Rely on age appropriate equipment and materials for enhancing learning for participants
• Provide reasonable accommodations to make the program accessible to students with disabilities which may include providing a private location or specialized medical training for the handling of a student’s personal needs

Partnerships – With key stakeholders, including parents, schools and community organizations, involved in:

• Collaboration that is responsible for planning, outreach and evaluation
• Coordination between the school site staff and program staff to enhance the academic components of the program by linking the school day and after-school curriculum
• Engagement by families in planning to ensure sustained youth participation and assure that the needs of each participant are met
• Participation by parent and community volunteers as an integral part of the program
• Active engagement of children and youth in community programs and in community service

Staffing – With programs to include staff members who are:

• Able to create positive relationships and mentoring opportunities between staff and participants by having adequate staff to participant ratios
• Qualified with appropriate qualifications including the ability to provide tutoring and homework assistance in accordance with the educational component of the program
• Involved in staff and professional development that is provided on an ongoing basis and is appropriate to program responsibilities
• Adequately compensated
• Evaluated on their job performance on a regular basis

Program Management – With the management and administration of programs that:

• Implement clear short- and long-term goals developed by the collaboration of key stakeholders
• Develop and implement relevant policies and procedures
• Maintain fiscal oversight and sustainability
• Are evaluated for effectiveness through continuous, multiple measures and result in necessary program modifications

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.

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.

When developing a PTA budget, consider including the following line items:

Carry-over Funds: Carry-over 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. To calculate the amount of this reserve, review the prior year’s Annual Financial Report to determine which operation or program expenses require funding during transition, and estimate costs for these items in the new fiscal year.

Convention: The annual California State PTA convention is usually held at the end of April or the first part of May. The unit should budget enough money to cover the cost of registration, hotel room, transportation and food for the allowed number of delegates based on the unit’s membership (Attending Conventions and Conferences).

Donations: PTAs may ask community supporters to donate funds to the PTA for general use or for a specific program.

Fundraisers: Fundraising income is the gross income from fundraisers. List each fundraiser individually. The expenses for conducting each fundraiser should be listed under Expenses individually by fundraiser.

Gross Income: This includes the total amount of income for the year, excluding council, district, State, and National PTA portions of per capita dues and freewill offerings.

Insurance: Participation in the California State PTA insurance program is required of all PTAs in California. Budget an amount that is similar to the actual expense from the previous year’s premium plus 10%. Units are notified of the premium amounts by October 1. The premium must be submitted to AIM by December 20, or a late fee of $25 will be assessed by California State PTA.

Membership Dues: Each association determines its own membership dues, but a portion of each membership must be forwarded through channels. The forwarded funds are listed as “Funds Not Belonging to the Unit.” This line of the budget should only reflect the amount of dues the unit retains as income.

Membership Envelopes: The purchase or printing of membership envelopes is listed as an expense.

Reimbursable Expenses: PTA should reimburse executive board members for any approved out-of-pocket expenses. PTA funds may not be used for personal expenses, gifts, personal acknowledgments, or personal use items. Appropriate out-of pocket expenses include photocopies, office supplies, etc. Unit, council and district PTAs should budget for out-of-pocket expenses and ensure the budget is shared equitably among officers/chairmen in accordance with job responsibilities. Members should be reimbursed upon submission of a signed Payment Authorization/Request for Reimbursement form. Receipts must be submitted for all reimbursable expenses. Unit, council and district PTAs may not budget an officer’s allowance. The IRS considers an allowance as miscellaneous income that must be declared by the recipient as such and will be taxed accordingly.

Staff/Volunteer Appreciation: PTA resources may be used for hospitality for staff/volunteer appreciation as long as it does not represent a significant amount. “Not of a significant amount” was previously defined by the IRS as an amount that does not exceed 5 percent of the nonprofit organization’s annual budget (see Staff Appreciation). PTA funds cannot be used to purchase personal gifts for staff or volunteers, including gift cards.

Training/Workshops: Budget funds to send executive board members to council, PTA district, and California State PTA workshops/meetings.

Unallocated Reserve: Unallocated reserve funds represent 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 with approval of the association. The budget should be amended to reflect funds transferred from Unallocated Reserves to other expense categories.

Restricted Reserve: In planning the budget, it is permissible for PTAs to have a savings account to hold funds for more than one year for the following reasons:

• Efficient management of restricted funds;
• A PTA program requires large donation to the school and the school district requires advance notice if the PTA cannot continue to fund the activity; i.e., computer equipment or teacher aide salary; and
• Monies to finance long-term or unexpected but approved projects or programs, i.e., playground project.

As a guide, the savings account reserve should not exceed one-half of the association’s budget for an average year.

The budget committee, which is appointed by the president (or president-elect if the budget is being developed for the new term in advance of taking office), has the responsibility for developing the annual budget. The treasurer (or treasurer-elect if the budget is being developed for the new term in advance of taking office) is designated as the committee chairman. The budget committee may include financial officers, the principal or other designated representative, the president (ex officio), and others. The committee cannot develop the budget until the board-elect has determined the goals and programs for the upcoming year. The executive board should have surveyed the school community before developing the goals and programs.

Once the goals and priorities are established, the committee should:

• Know the goals the association is trying to achieve for the year and plan finances accordingly.
• Invite board members to submit suggestions.
• Review the program(s) proposed by the program committee, including detailed expense projections.
• Review past budgets, income and expenditures.
• Estimate probable income from all sources.
• Balance probable income with probable expenses.
• Determine the amount of carry-over funds to set aside to begin operations at the beginning of the subsequent PTA fiscal year, prior to the onset of fundraising activities.
• Unallocated Reserve funds represent 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.

A contract is a legally enforceable agreement between two or more persons or organizations. All contracts must be approved in advance by the PTA membership and signed by two elected officers, one of whom must be the president.

The appropriate officer/chairman must have authorization from the executive board before negotiating a contract. Receive the contract in writing. Understand the terms and conditions of the contract. Have the contract reviewed by legal counsel and/or the California State PTA insurance broker if needed. Ensure that the length of the contract is limited to the current membership year and does not encumber future boards.

All contracts must be approved by the association prior to being signed.

When entering into a contract, the president is responsible for the agreement and should clearly identify that it is the PTA entering into the contract and not the president as an individual. The signatures on a written contract should be formatted as follows: “ABC PTA by Jane Smith, President, 2019-2020.”

Signing a contract obligates the PTA to comply with the terms and conditions of the contract and to pay the stated sum. The fact that the activity is not a financial success or that the PTA has insufficient funds to meet its obligation has no effect on the responsibility assumed.

Do not sign a contract that makes the PTA responsible for injury or damages.

Units should check with their local school district before hiring any independent contractor or teacher for a classroom or school site to ensure that school district policies and procedures are followed. Independent contractors must provide current certificates of insurance, which the PTA must retain in its files. Directors, teachers, or instructors hired as independent contractors must carry their own general liability insurance and Workers’ Compensation Insurance. See PTA as an an employer

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.