what every treasurer must know teresa williams, national pta secretary-treasurer jeanice aikens,...

What Every Treasurer Must Know

Teresa Williams, National PTA Secretary-TreasurerJeanice Aikens, National PTA Chief Financial Officer

© National PTA, 2010

•Title (edit on Master Slide)•Subtitle

Let’s Talk About

Money Management

Reports and IRS Regulations

Insurance Needs

Fund Raising

Resources

Best Practices


First Steps!

Make sure books are audited/financial reviewCheck the files!Study duties and any reference to finances/budget in your PTA bylawsSecure signatures of authorized officersFile signature cards with bankCheck on bond and liability insuranceReview PTA Money Matters


Money Management


Money Management

Develop a realistic budget– Review Records Retention Schedule

Store records properly — keep:– Copies of all Treasurer’s Reports– Bank Statements and Reconciliations– Check Request or vouchers– Deposit Receipts


Banking

Two Signatures on all checksUse Large Size Checks Duplicate Check Fees and Monthly Charges– Deposit and Withdrawals

Location and Hours Online Banking AvailabilityMonthly Statements


Reporting

Make a report at all Board meetings

Develop a report to best reflects a transparent process– Budget Amount– Monthly Report– Year-to-Date Total– Balance of Line Item


East Anywhere High School

Tip: Use the program and report design that is best for you and your PTA!


Reports And Regulations


Reports And Regulations

Follow all State and Federal guidelines

Follow your approved budget, amend if needed

Perform an financial review/audit at year’s end, or when needed

Review relevant areas of www.irs.gov


Applying For Tax-exempt Status

www.irs.gov


Resources From National PTA

National PTA

provides

all states and local units

access to resources

that are easy to

understand.


Tax Code Compliance

A top priority of any

state, council, district,

or local unit is to

stay in compliance

with tax codes.


Federal Requirements

Federal Tax Exempt Status – 501(c)(3)

Employer Identification Number (EIN)

Determination Letter of Tax Exempt Status

Public Inspection Requirements

Unrelated Business Income (UBI)


A Correct And Timely Form 990

Who should file?

Which form should be filed?

When to file?

What are gross receipts?

Why is this important?

What happens if we don’t file?


Audits And Financial Reviews


Purpose Of The PTA Audit

To certify accuracy of books and records

To assure membership resources are being managed properly


Three Types Of Audits

Compiled Financial Statements – Limited or no verification of information

Reviewed Financial Statements – Perform some inquiry and analytical procedures

– Limited assurance of information

Audited Financial Statements – Highest level of assurance of information– Extensive substantiation and verification


Preparation For Financial Review

Financial records should be “put in” orderBills cannot be paid after books are closed for financial reviewMaterials needed include– Copy of last financial review/audit– Checkbook and canceled checks– Bank statements and deposit receipts– Itemized statements and receipts of bills paid– Check requests or vouchers


The Need For Insurance


Why Does PTA Need Insurance Coverage?

School districts generally do not cover PTA Units

Protects the assets of the PTA

Protects the assets of PTA members


Types Of Coverage

General Liability

Fidelity Bond

Directors and Officers Liability

Property


General Liability Coverage


General Liability Coverage

Who should be protected?– The PTA unit– Volunteers, PTA members

What protection does general liability provide?– Actions against the PTA from injury or property

damage

Is there a dollar limit?– PTAs are encouraged to investigate a policy containing

a $1 million limit; this is an industry standard


Coverage

Types of Events Covered– Meetings and Dinners– Book Fairs– Food Sales– Carnivals– After Prom – Graduation Parties

Tips:Tips:• Make sure your insurance carrier

provides a list of all covered activities • Never assume that your PTA is

under someone else’s coverage.


Events Not Covered

Typically the following events are not coveredFirework SalesMechanical RidesBoatsWatercraft ActivitiesOrganized Sports


Fidelity Bond Coverage


Fidelity Bond Coverage

Protects the cash of the PTA unit against– Theft– Robbery– Embezzlement

Who’s Covered?– All individuals who handle funds regularly

• Treasurer• President• Fund Raising Chair


Considerations

How can your PTA protect itself?– Two signatures on all accounts– Have the checking account reviewed by someone

who is not a signer– Conduct an annual audit/financial review

How much coverage do we need?– Each PTA should determine their own amount of

coverage

Tip:Tip:• Match the amount of coverage to the amount of the budget.


Officers And Directors Coverage


Officers And Directors Coverage

How are PTA Officers protected?What situations are covered?How are officers not protected?


A “Word” About Fund Raising!


How Many Fund Raisers Should A PTA Hold?

Remember the “3 to 1 Rule”

Base fund raisers on your annual budget and plan your activities

Be knowledgeable of IRS Regulations

Research State regulations governing non-profit fund raising


Who Needs To Approve Contracts?

Approval of contracts has an effect on your overall PTA Budget and Operations

– The Board should have input – The president should sign all contracts

Do not allow a vendor to push your PTA into a contract


Tips For A Successful Event

Make sure your percentages are the highest possible

Does the event have a good track record with your PTA?

Make sure your members know where the funds are going to be used

Deposit all funds the day they are received


Useful Resources

www.pta.org

National PTA e-Newsletters

PTA Money Matters

PTA Convention Handouts

PTA President’s Quick Reference Guide

NPTA e-learning courses– Ethical Leadership– Preventing Theft In Your PTA


The

2010-2011

Money Matters will

arrive in the

PTABox of Possibilities!


Another great resource

developed by National

PTA is the…

PTA President’s Quick PTA President’s Quick Reference GuideReference Guide


Contact Information

Teresa Williams

National PTA Secretary-Treasurer

[email protected]

Jeanice Aikens

National PTA Chief Financial Officer

[email protected]

what every treasurer must know teresa williams, national pta secretary-treasurer jeanice aikens,...

Documents

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master slidesubtitleresources

master slidesubtitlepurpose

master slidesubtitleaudits

master slidesubtitleeast

master slidesubtitleapplying

pta auditto

financial reviewstitle