Basic Financial Training Thirty-Third District PTA Spring Officers Training 2015 Thirty-Third District

Terms/Abbreviations  AFP = Authorization for Payment  CAPTA = California State PTA  CT = Charitable Trust Number; required; must file RRF-1 with Secretary of State, each year  District = Thirty-Third District PTA  EIN = Employee Identification Number (for IRS)  FTB = Franchise Tax Board Number (for State Taxes)  IRS = Internal Revenue Service  LOD = Letter of Determination  NFS = Not Sufficient Funds  RRF-1 = Registration/Renewal Fee Report for Charitable Trust (CT) Number  SOS = Secretary of State Basic Financial Training - Spring 2015

FIDUCIARY RESPONSIBILITIES  Protecting the assets of PTA is the fiduciary responsibility of the entire board  PTA funds belong to the membership of the PTA  Members must be fully informed about how the money is spent or intended to be spent by the PTA  Members must be provided with the opportunity to approve business transactions of the organization  Keeping the members informed indicates the PTA is being transparent Basic Financial Training – Spring 2015

Organizational Structure Basic Financial Training – Spring 2015

The Budget Process  Creating the Proposed Budget The Treasurer chairs the Budget Meeting Review last year’s budget to actual revenue and expenses Combine the best of the past with new ideas for the future Ensure that all proposed programs and activities are in compliance with the Insurance and Loss Prevention Guide  Present the Proposed Budget to the Executive Board  Present the Proposed Budget to the association for approval  Approval of Programs – Evidence of approval of all programs and activities must be in the minutes for insurance purp oses Basic Financial Training - Spring 2015

Keeping Track of the Budget  IT IS THE DUTY OF THE ENTIRE BOARD!  Adoption of the budget does not authorize the expenditure of the funds. Funds still need to be released and individual expenditures approved.  Ensure that expenses stay within budget  Inform committee chairmen of their budgeted amounts  The budget is a working document and can be revised by the association Basic Financial Training - Spring 2015

Insurance & Loss Prevention Guide   Red Light - Yellow Light - Green Light  Check the Vendors List!  Insurance only covers your unit if proper financial procedures are followed  Never break the chain of custody! Basic Financial Training - Spring 2015

The Treasurer’s Ledger – Receipts CATEGORIES:  Membership Separate local portion and amount due at membership turn-in  Fundraising  Program Services Any event not meant as a fundraiser  Donations  Other **LIST AND DEDUCT ANY RETURNED CHECKS AGAINST THE APPROPRIATE CATEGORY Basic Financial Training - Spring 2015

The Treasurer’s Ledger - Disbursements CATEGORIES:  Student Welfare Awards, scholarships, room parties, gifts to school, parent ed  Fundraising  Organizational Expense Officer’s & Chairmen’s expenses, convention, insurance and supplies  Other List anything that does not come under any other category **LIST AND DEDUCT ANY VOIDED CHECKS FROM THE APPROPRIATE CATEGORY Basic Financial Training - Spring 2015

Handling of Receipts – Financial Secretary  Must be used for the receipt of ALL MONIES!  All monies must be counted by two PTA members with one being an officer or chairman – the two shall not be related by blood, marriage or reside in the same household – The auditor should never count monies received  Money must be counted before leaving the school  The Cash Verification form must be signed by all persons counting the funds  The number of MEMBERSHIPS must be reconciled and listed on the form along with any DONATIONS received  The financial secretary must verify totals and countersign the form when taking custody of the money Basic Financial Training - Spring 2015

Handling of Receipts, cont’d  The financial secretary should issue a receipt to the event/program chairman A receipt book should be maintained by the financial secretary Use a receipt book which contains numbered forms in triplicate  The financial secretary should log the receipts under their appropriate budget categories for budget tracking purposes  The financial secretary should turn over the funds along with the Cash Verification Form and duplicate receipt to the treasurer in a timely manner Basic Financial Training - Spring 2015

Making Deposits – Treasurer  All receipts must be deposited into the bank as soon as possible Only PTA funds are to be deposited into PTA accounts - No commingling of funds  Prepare deposit slips in duplicate, the original for the bank and the duplicate for the treasurer’s records  Checks must be marked “For Deposit Only” with the PTA account number  Develop and use a system to identify checks should they be returned unpaid (i.e., NSF) from the bank  Walk-in Deposits  Night Drop Deposits  Call the local police watch commander (not 911) for an escort if you are concerned about transporting a large deposit to the bank  Deposit receipts and financial secretary’s duplicate receipts should be attached to the Cash Verification Form(s) and retained for audit Basic Financial Training - Spring 2015

Handling Disbursements - Financial Secretary & Treasurer  Authorizations for Payment (AFP) or Check/Payment Requests must be completed for all expenses Forms should be completed by those incurring the expenditure and must be turned in to the financial secretary who should:  Check all receipts or invoices  Assign a check number  Assign a budget account number  Obtain approval or ratification from the association  Released funds can be paid upon receipt of AFP or Check Request and later ratified during an association meeting  If funds are not released, the payment must be held until it is approved by the association Present the approved AFP or Check/Payment Request to the treasurer for issuance of check  Evidence of approval or ratification of all expenses must be in the minutes Basic Financial Training - Spring 2015

Handling Disbursements, cont’d Basic Financial Training - Spring 2015

Handling Disbursements, cont’d Advance Authorization  Funds may be advanced to the respective officer or chairman upon release of funds  Ensure that all receipts are turned in and reconciled  Ensure that any refund is collected in a timely manner Basic Financial Training - Spring 2015

Writing the Check  Payable as listed on the Authorization for Payment or Check/Payment Request only  Payments for membership, insurance, council and district events should be issued to council. Out-of- council units should issue payments directly to Thirty- Third District.  The amount must match the authorized amount  NEVER PRE-SIGN CHECKS!!!!!  NEVER PAY IN CASH!!!!!  NEVER PAY WITH A PTA DEBIT/ATM CARD!!!!! – refuse or distroy any debit or atm card Basic Financial Training - Spring 2015

Dealing with NSF Checks  NSF = Not Sufficient Funds  Deduct all returned checks from Receipts and any bank fees from Disbursements  Deal with NSF Checks ASAP  Collect the total of the returned check and any bank fees  When collected, enter the amount of the check back into the Receipts and deduct the collected bank fee from the Disbursements Basic Financial Training - Spring 2015

Reconciling the Bank Statement  The bank statement should be reviewed monthly by a non-check signer to ensure there are no irregularities before forwarding to the treasurer  The treasurer must reconcile the bank statement monthly Verify checks written to checks posted on bank statement List and total any outstanding checks Verify deposits made to deposits posted on bank statement List and total any un-posted deposits Add any un-posted deposits and deduct any outstanding checks to bank statement balance Total must agree with your checkbook balance  Online Banking It is acceptable to use online banking to obtain a bank statement It is NOT acceptable to transfer funds online - All disbursements must have 2 signatures Basic Financial Training - Spring 2015

Financial Secretary’s Report  Prepared and presented monthly at Executive Board and association meetings, and at other times when requested by the association  The report must include an accurate record of all individually itemized receipts  Subtotal receipts by category  Total receipts must agree with amount actually transferred to the treasurer  In the event that a unit does not have a financial secretary, all receipts must be individually itemized on the Treasurer’s Report Basic Financial Training - Spring 2015

Treasurer’s Report  Prepared and presented monthly at Executive Board and association meetings, and at other times when requested by the association  The Treasurer’s Report must contain Balance on Hand as of the last report Total Receipts as received from the financial secretary – If the unit does not have a financial secretary, the Treasurer’s Report must include an itemized list of receipts for the monthly period Itemized Disbursements including the check number, issue date, payee and description Disbursements requiring ratification by the association should be flagged Balance on Hand as of the date of the report Savings account balances and activity  Required - Provide a copy of your unit Treasurer’s Report to your council monthly Basic Financial Training - Spring 2015

COMPUTER-GENERATED FINANCIAL RECORDS  A monthly printed record must kept in a permanent binder showing title and time covered  Maintain a checkbook register with the current balance at all times  A backup of financial files should be done monthly  Electronic payments or wire transfers are NOT allowed Bylaws require two signatures on all checks Basic Financial Training - Spring 2015

PTA-EZ  PTA-EZ –  “Created by PTA Leaders exclusively for your local unit  Accounting and Management – a comprehensive web-based solution  Costs based on Revenue  $99 to $219 per year  Optional Items:  Online store - $30  Form $100  Form 990 EZ - $80  Form 199 State tax - $30  Does take time to set up initially Basic Financial Training - Spring 2015

Reporting at Monthly Meetings  The financial secretary should present his/her report by reading subtotals by category and total receipts for the month  The treasurer should present Balance on Hand as of the last report, total receipts, total disbursements and Balance on Hand as of the date of the report  The financial secretary should move to ratify checks issued since last association meeting listing them individually and giving a total  The financial secretary should move to approve bills to be paid submitted prior to and during the meeting listing them individually and giving a total  Checks to be Ratified and Bills to be Paid Form  Approval of fundraisers  Approval of upcoming activities  Release funds for budget  Budget Update Basic Financial Training - Spring 2015

Making a Motion - To Ratify Checks & Approve Bills to be Paid o Checks to be Ratified should be listed on the Treasurer’s Report o Bills to be Paid will be submitted to the financial secretary during the meeting o The president should make an announcement at the start of the meeting requesting that all Authorizations for Payment/Check Requests be turned into the financial secretary o Upon approval of motions, the form should be given to the recording secretary to facilitate the inclusion of the details of both motions in the minutes Basic Financial Training - Spring 2015

Organization of Financial Records  Procedure Book –  Agendas, Minutes, Council Due Date Calendar, Unit Calendar  Treasurer -  Ledger  Cash Verification Forms  Authorizations for Advance/Payment, Check Requests  Budget, Budget Updates, Treasurer’s Reports  Receipt Book  Financial Secretary -  Accounting Detail  Receipt Book  Budget, Budget Updates, Financial Secretary’s Reports  Auditor –  Copies of Previous Audit Reports/Findings Basic Financial Training - Spring 2015

Preparing for the Audit  Tying up the Loose Ends… Complete and pay all pending authorizations Research and clear all outstanding checks Organize records for the auditor  Deliver books and records to the auditor in a timely manner  Audits must be conducted three times per fiscal year* Mid-year covering July 1 through December 31 End of fiscal covering January 1 through Feb 28/29 End of term March 1 through June 30 Basic Financial Training - Spring 2015

Annual Treasurer’s Financial Report  Reports gross receipts and disbursements for the fiscal year. Our fiscal year runs from March 1 st through Feburary 28 th *  It is used by tax preparers to file taxes  The council and district PTA also requires this report  Units are to prepare their own Annual Treasurer’s Financial Reports  Contact council for the Excel file which includes treasurer’s book reconcilement of monthly receipts and disbursements Basic Financial Training - Spring 2015

TAXES, CHARITABLE TRUST NUMBER & RRF-1 FORM and RAFFLES  All PTAs must file a federal AND a state tax return  Due no later than the 15 th day of the fifth month after the end of the fiscal year  Copies must be turned into council, councils turn into district  Every PTA must already have or register for a charitable trust number immediately  RRF-1 form (registration/renewal fee report for charitable trust numbers) must be filed annually within four months and 15 days after the end of fiscal year  All units holding raffles must register by filing form CT-NRP-1 prior to September 1 st (allowing 60 days before raffle event) Basic Financial Training – Spring 2015

PTA Fiscal Year Change As you all should be aware of by now, the Thirty-Third District PTA and all of its councils and units have changed their fiscal year from March 1 through February 28 to July 1 through June 30. Specific information will be distributed by your PTA council.

Financial Filings

Questions & Answers Basic Financial Training – Spring 2015