Search Results for: forms

The Payment Authorization/Request for Reimbursement form is a combination of two forms: Payment Authorization and Request for Reimbursement. The Payment Authorization/Request for Reimbursement should include the following information: date, check number, payee, amount to be paid, and budget line item(s), with the signatures of the secretary and the president authorizing the payment, following association approval. Receipts must be attached.

Budget approval is not authority for the expenditure of funds except as stated in the bylaws. The committee chairman must first present plans that include a detailed budget to the executive board for approval. The executive board has the authority to authorize association bills within the limits of the budget adopted by the association. All monies/payments must be within the approved budget and either preapproved (funds released) by the association at an association meeting or ratified by the association at the next association meeting. To release funds for any activity, a motion must be adopted at an association meeting. “I move to release up to $600 for the fall festival. Budget category: fall festival.” The treasurer should provide a budget-to-actual comparison report to the executive board at least quarterly with the variance on all released funds.

After authorization by the executive board or the association, the presentation of a fully supported Payment Authorization/Request for Reimbursement Form permits the treasurer to write checks. An authorization for payment must be signed by the president and secretary. It is not necessary to wait until the next association meeting to reimburse monies.

Persons authorized to purchase items for the PTA, for which the expense will be reimbursed, may request an advance in an amount not to exceed estimated expenses. The advance must first be approved by the executive board. (Request for Advance)

PTA members and contributors often assume any payment they make to a PTA in conjunction with a fundraising event is tax deductible. However, rules and limitations exist for the deductibility of such payments.

State and federal law requires that tax-exempt charitable organizations provide donors with receipts or other forms of documentation of contributions for a cash donation. Failure to comply may result in denial of deductions for donors and the imposition of penalties on the organization.

Tax laws require the donor to obtain a receipt for every cash donation regardless of the amount. A donor must have a canceled check, bank record or receipt that shows the name of the PTA to which the contribution was made, the date and the amount of the contribution; therefore PTAs must give a receipt for every cash donation.

In-kind contributions of $250 or more require written acknowledgment from the PTA that lists the items donated and includes the PTA’s Employer Identification Number.

Upon receiving a quid pro quo contribution of $75 or more, PTAs must provide written acknowledgment that quantifies the value of the donation (cash-equivalent) and documents how the donation was received (cash, goods or services).

In all cases, be sure to thank the donor for her/his generous support (Donation Receipt).

Quid Pro Quo Contributions

Payments made partly as a contribution and partly for goods and services provided to the donor from the charity are known as quid pro quo contributions. For example, when a donor pays $100 for a concert ticket that would normally be valued at $40, $60 would be tax deductible. The quid pro quo contribution is the total amount paid, not the deductible amount. Therefore, in this case, because the donor paid $100, a disclosure statement must be provided.

In the case of a large cash donation or an endowment, an association should contact district PTA or the State PTA office for guidance.

Donations of property such as vehicles and stock (except for publicly traded securities) that can be sold and are valued in excess of $500.00 may need to file a form 8282 depending on how the value was determined. This only applies if the property is sold within 3 years of the donation but requires the donor to fill out part of the form. Since the donor may not be available in 2-3 years, it is good practice to have them fill out the form just in case you may sell it during that time frame.

Non-cash donations in excess of $5000.00 require a form 8283 to be filled out and given to the donor for their taxes. They also (except for publicly traded securities) must be appraised by an outside qualified appraiser.

See IRS information about non-cash donations at: https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-organizations-substantiating-noncash-contributions 

All revenue and receipts must be counted and deposited in the bank immediately after the completion of an activity. At least two PTA members, one of whom should be an officer or a chairman, must count the monies received. The people counting the money shall not be related by blood, marriage, or cohabitation. Do not publicize the place where money is to be counted.

Have all those involved in counting money verify the total and sign the Cash Verification Form. This form is a safeguard when volunteers are handling PTA funds (Cash Verification Form). Copies of cash verification forms or receipts must be given to the event chairman for documentation in his/her activity report. The totals must match the monies deposited for the activity.

The treasurer or financial secretary shall deposit the money immediately in the bank. If immediate deposit or night drop is not possible, plan for the safekeeping of money until it is deposited in the bank. Never take money home. For ongoing fundraisers or when money is coming in daily, the money should be deposited daily in the PTA’s bank account.

Never deposit any money in anyone’s personal account or in the school account. Never leave money unattended, in someone’s home or in the trunk of a car (Deposits).

Simple procedures for counting money can keep the PTA safe and ensure accurate reporting of receipts to the membership. If money is collected when the banks are not open, make plans with the bank for a night deposit or with the school principal to use the school safe. Be sure that the amount is documented prior to depositing it in the school safe or lockbox. The documented deposit should be placed in a sealed envelope signed by a school administrator and verified by two authorized PTA representatives. Each party handling the money should count, sign and receive a copy of the Cash Verification form. Any funds kept in a safe or lockbox must be recounted by at least two people (including at least one PTA officer or chairman) immediately upon being removed from the safe/lockbox and prior to the funds being deposited at the bank. This is required even if the deposit envelope is still sealed and appears undisturbed.

Depending upon the community, a police or sheriff escort to the bank may be provided on request.

Prepare deposit slips in duplicate or make a copy, with the original for the bank and the duplicate for the treasurer’s records. Follow the bank’s directions when recording the checks on the deposit slip. Some banks require listing the bank numbers for each check; some accept an adding machine tape or computer printout of the check amounts and totals.

Checks should be marked “For Deposit Only” with the PTA account number. A stamp with this information may be secured at the time the bank account is opened. Enter deposit amount in check register. Roll coins as directed by the bank. Attach a copy of the deposit slip to the Cash Verification Form.

Before depositing checks, make copies to accompany the deposit record and to assist with the collection of non-sufficient funds (NSF) checks. Remember that financial officers have a fiduciary responsibility to protect sensitive and confidential information. Copies of deposited checks should be shredded after the financial review has been completed.

The Annual Financial Report reports gross receipts and disbursements for the fiscal year and has separate sections for amounts belonging to the association and amounts NOT belonging to the association. The report is distributed to the executive board, to the membership, and may be required by federal and state agencies. Copies of these reports must also be uploaded to the document retention system, as required in the bylaws.

If the fiscal year is different from the budget year and the term of office, a financial report showing all the gross receipts and disbursements for that annual period must also be produced.

See Annual Financial Report (Sample).

A written Financial Reviewer’s Report must be presented to the executive board and association after the books and financial records of the association have been financially reviewed. An Financial Review Checklist and separate Financial Review Report page is required for each account. A report detailing findings and recommendations makes up the third component of a financial review. If all is in order, the financial reviewer or financial review committee prepares a report, and the financial reviewer or each member of the committee signs it.

A report must also be submitted by the financial reviewer or financial review committee in the event that there are not adequate records available to conduct a proper accounting of the association funds. The financial review report must be officially adopted by the association and uploaded to the document retention system (Financial Review Report).

If the financial review is not conducted by a qualified accountant, a financial review committee must examine the financial review and sign the financial review report prior to the financial review report being presented to the executive board and association. A qualified financial reviewer is defined as someone who has been trained/licensed to conduct audits and/or review accounting records, such as a Public Accountant or Certified Public Accountant (CPA). They do not need to be currently employed in the field.

See Financial Review Report form and Financial Review Checklist.

The budget is a financial representation of the goals, activities and operations a PTA expects to conduct during a specified period. The budget estimates income and expenses for the year and must be presented to the association for approval and recorded in the association minutes. The budget must coincide with the term of office, which is usually also the association’s fiscal year. (See Budgeting and Fundraising.)

See Budget (Sample).

A Hold Harmless Agreement means that the signer assumes total liability for a facility while the signer is using it. Many school district Facility Use Permits include a Hold Harmless Agreement which, if signed, would mean that the PTA assumes the total liability for that facility during PTA’s usage, whether the cause of an injury or accident is due to anything under the control of the PTA or not. If the school district requires the PTA to sign a Hold Harmless Agreement for use of school premises, the PTA should contact the California State PTA insurance broker first. The insurance broker may then direct the signing of a Facilities Use Permit Addendum.

PTA is required to obtain a Hold Harmless Agreement and Evidence of Insurance from each vendor, concessionaire, or service provider who is used. Instead of providing Evidence of Insurance to each individual unit, the vendor, concessionaire, or service provider may file an annual copy of coverage with the California State PTA insurance broker.

A list of vendors, concessionaires, or service providers who have Evidence of Insurance on file with the California State PTA insurance broker is available on the insurance broker’s website. (See the California State PTA Insurance Guide for website information.) These vendors, concessionaires, and service providers do not need to sign the Hold Harmless Agreement or provide a copy of their insurance if the policy has not expired. If the date on the list has expired, call the California State PTA insurance broker.

In a Hold Harmless Agreement, the signing party assumes responsibility for all acts and all liability for any injuries that occur related to an event.

Tax Requirements
Employer Identification Number (EIN)
Tax-Exempt Status and Letters of Determination
Sales Tax
Federal Taxes
State Taxes and Government Forms
Gross Receipts
Unrelated Business Income Tax
Filing Due Dates
Officer Responsibilities for Filing
Internal Revenue Service (IRS) Audit

A monthly report for each bank account must include

• balances at the beginning and end of the period covered;
• amounts credited to the general fund and any special funds, separated by PTA income belonging to the association and PTA income NOT belonging to the association;
• receipts and disbursements with a detailed written report, separated by PTA expenses belonging to the association and PTA expenses NOT belonging to the association;
• the report must be posted and/or distributed. Copies of the report must be provided to the president and secretary. Information provided should be included in the minutes or attached to the minutes.

The Treasurer’s Reports are created in two distinct sets – one covering the periods from association meeting to association meeting, and the other covering the period from executive board meeting to the next executive board meeting. The end date for the report should be just before the date of the meeting so that the information is as accurate and up-to-date as possible.

NOTE: Any account owned by the PTA to which deposits are made or from which payments are made is considered a “bank account” and requires a monthly treasurer’s report. This includes PayPal, Stripe, Square, and other financial processing accounts.