Thirty-Third District Financial Officers Training Thirty-Third District PTA Fall Officers Training 2015 Thirty-Third District PTA Fall Officers Training

FIDUCIARY RESPONSIBILITIES Protecting the assets of PTA is the fiduciary responsibility of every PTA officer 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 Thirty-Third District PTA - Financial Training Thirty-Third District PTA Fall Officers Training

The Budget Process Creating the Proposed Budget The Treasurer chairs the Budget Meeting Design a financial plan that meets the needs of the association based on its goals and objectives for the year 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 purposes Thirty-Third District PTA - Financial Training Thirty-Third District PTA Fall Officers Training

Keeping Track of the Budget IS THE DUTY OF THE ENTIRE BOARD! Adoption of the budget does not authorize the expenditure of the funds 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 Thirty-Third District PTA - Financial Training

Handling of Receipts – Financial Secretary The Cash Verification Form 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 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 Thirty-Third District PTA - Financial Training Thirty-Third District PTA Fall Officers Training

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 Thirty-Third District PTA - Financial Training Thirty-Third District PTA Fall Officers Training

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 The endorsement stamp must be safeguarded 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 Thirty-Third District PTA - Financial Training Thirty-Third District PTA Fall Officers Training

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 Thirty-Third District PTA - Financial Training

Handling Disbursements, cont’d Thirty-Third District PTA - Financial Training

Writing the Check Payable as listed on the Authorization for Payment or Check/Payment Request only The amount must match the authorized amount NEVER PRE-SIGN CHECKS!!!!! NEVER PAY IN CASH!!!!! NEVER PAY WITH A DEBIT/ATM CARD!!!!! Thirty-Third District PTA - Financial Training Thirty-Third District PTA Fall Officers Training

Writing the Check Thirty-Third District PTA - Financial Training Thirty-Third District PTA Fall Officers Training

The Treasurer’s Ledger – Receipts CATEGORIES: Membership Separate local portion and amount due at membership turn-in Fundraising Program Services Donations Other **LIST AND DEDUCT ANY RETURNED CHECKS AGAINST THE APPROPRIATE CATEGORY Thirty-Third District PTA - Financial Training

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 Thirty-Third District PTA - Financial Training

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 Thirty-Third District PTA - Financial Training

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 Thirty-Third District PTA - Financial Training

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 Thirty-Third District PTA - Financial Training

Thirty-Third District PTA - Financial Training

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 Thirty-Third District PTA - Financial Training Thirty-Third District PTA Fall Officers Training

Thirty-Third District PTA - Financial Training

COMPUTER-GENERATED FINANCIAL RECORDS A monthly printed record must be 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 Thirty-Third District PTA - Financial Training Thirty-Third District PTA Fall Officers Training

PTA-EZ PTA EZ – www.ptaez.com “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 990 - $100 Form 990 EZ - $80 State tax - $30 Does take time to set up initially Thirty-Third District PTA - Financial Training Thirty-Third District PTA Fall Officers Training

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 and during the meeting listing them individually and giving a total Checks to be Ratified and Bills to be Paid Form Thirty-Third District PTA - Financial Training Thirty-Third District PTA Fall Officers Training

Ratify Checks & Approve Bills to be Paid Thirty-Third District PTA - Financial Training

Making a Motion - To Ratify Checks & Approve Bills to be Paid Checks to be Ratified should be listed on the Treasurer’s Report Bills to be Paid will be submitted to the financial secretary during the meeting 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 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 Thirty-Third District PTA - Financial Training

Reporting at Monthly Meetings Approval of fundraisers Approval of upcoming activities Release funds from the budget Budget Update Thirty-Third District PTA - Financial Training

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 two times per fiscal year and anytime a check signer resigns and/or upon request by the Executive Board. Mid-year covering July 1 through December 31 End of school year covering January 1 through June 30 Thirty-Third District PTA - Financial Training

Sample Audit Report (blank) Thirty-Third District PTA - Financial Training Thirty-Third District PTA Fall Officers Training

Thirty-Third District PTA - Financial Training Thirty-Third District PTA Fall Officers Training

Annual Treasurer’s Financial Report Reports gross receipts and disbursements for the fiscal year. Our fiscal year runs from July 1 through June 30. 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 Thirty-Third District PTA - Financial Training Thirty-Third District PTA Fall Officers Training

TAXES, CHARITABLE TRUST NUMBER & RRF-1 FORM All PTAs must file a federal and a state tax return Due on the 15th day of the fifth month after the end of the fiscal year or November15th Copies must be turned into council 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 or November15th Thirty-Third District PTA - Financial Training

Tax Return Search Resources Federal tax returns: 990N: Go to http://apps.irs.gov/app/eos/ Choose “Have filed form 990N” Enter information, preferably the EIN. (Most units and councils show up under the general name of “PTA California Congress of Parents Teachers & Students Inc.” since we’re all under State PTA’s group exemption.) Hit Search. Results are listed by “Tax Year.” A tax year of 2014 refers to the period from March 2014-February 2015. 990EZ/990: Go to http://foundationcenter.org/findfunders/990finder/ Enter the EIN. Hit Find. The column that says “Year” does not refer to the tax year. It seems like it might refer to when the return was received. So a Year of 2013 generally will bring up a return with the period from March 2012-February 2013. Please note that there is generally a lag time between when IRS receives a paper return and when it gets posted. It’s good for looking up returns that should have been sent more than a month or two ago. State tax returns: Currently there is no way to verify state tax returns online. Thirty-Third District PTA - Financial Training

RRF-1 (CT # / Raffle Registration) and SI-100 Search Resources CT number and RRF-1 and Raffle Registration: Go to http://rct.doj.ca.gov/Verification/Web/Search.aspx?facility=Y Enter EIN or FTB number. Hit Search. This website is pretty slow, so you might have to wait for a minute before any results come up. Also, if the EIN doesn’t work, try using the FTB number. Click on the appropriate result. If you’re looking up RRF-1s, click the result with the Charitable Trust number. Basic CT information will be at the top. Scroll down for RRF-1 information. Scroll to the bottom for links to copies of submitted forms and correspondence. SI-100: (for Incorporated Councils and Units Only) To check the SOS (Secretary of State) status: Go to http://kepler.sos.ca.gov/ Click on “Entity Number” search type button Enter “Entity Number” (which is the Corporation #). Hit Search. Click on the council or unit name to get the detailed list of information Thirty-Third District PTA - Financial Training

Questions & Answers Thirty-Third District PTA - Financial Training Thirty-Third District PTA Fall Officers Training