PTA Finance Training 2015 California State PTA

The Finance Team Association Members The President The Treasurer Board Members The Secretary The Financial Secretary The Auditor

Financial Accountability Executive Board (Article V – election of officers) Treasurer & Financial Secretary (Article VI – duties of officers) Auditor (Article VI – duties of officers) Fiduciary responsibilities Handling, recording and reporting Monthly, bi-annual, and on-going

Approves programs Approve the budget Authorizes expenses Approves minutes The association is the ultimate authority (Bylaws Article VIII, Section 3) Association Responsibilities Releases budgeted funds to the board Ratifies every check Approves budget changes

– in writing to all eligible voters – place, date, time and general nature of business A Quorum Must be Established (and recorded in meeting minutes) Association Meeting Notification (Corporations Code 7511 & Bylaws Article VII)

10 to 90 days notice: Association Meeting Notification (Corporations Code 7511 & Bylaws Article VII) any time when action items will be presented 10 days notice: for changes in the time or date of a regular meeting 10 days notice: for special meetings; limited business 30 days notice: for annual election meeting

Fiduciary duties: care, loyalty, obedience Transparency duties: simple, complete & clear Board Responsibilities The board is subordinate to the association (Bylaws Article VIII, Section 3)

Board Responsibilities The board is subordinate to the association (Bylaws Article VIII, Section 3) Transacts business as authorized by the association Authorizes payment of bills within budget limits Authorizes payment of unbudgeted bills within approved limits

Board Responsibilities The board is subordinate to the association (Bylaws Article VIII, Section 3) Create committees as needed Fill vacancies in office Present reports at association meetings

Receives PTA money Gives a receipt for PTA money received Deposits money into a PTA bank account Financial Secretary (Bylaws Article V) Records money received and deposits Presents report at board and association meetings Gives a copy of the deposit slip to the treasurer

Audit the financial records: mid-term and year-end Auditor (Bylaws Article V) Present audit reports per schedule in bylaws Verify the completion and filing of taxes upon resignation of the treasurer or financial sec. upon resignation of any check-signer Recommended: 5-minute audit of bank statements

President (Bylaws Article V) Signs “Authorization for Payment” forms following approval. May sign PTA checks after proper approval Signs contracts that have been approved by association

Secretary (Bylaws Article V) Keeps an accurate records of meeting procedures Records all approved expenditures in minutes Signs “Authorization for Payment” forms following approval.

The Budget Treasurer’s Reports Budget-to-Actual “Treasurer’s Report” Annual Financial Report

Budget Receipts Dues Fundraiser #1 $1, $32, Total receipts: $33, Expenses Supplies Field trips $ $32, Total expenses: $33, Estimated

Budget-to-Actuals Receipts Dues Fundraiser #1 $1, $32, Total receipts: $33, Expenses Supplies Field trips $ $32, Total expenses: $33, $ $22, $22, $ $3, $3, Actuals Estimated

prepare the budget (committee & board) report budget-to-actuals to the board adopt the budget (association) change the budget (association) release funds to the board (association) The BUDGET Process

Budget-to-Actual Receipts

Budget-to-Actual Disbursements

Treasurer’s Report Income Dues Fundraiser #1 $1, $22, Total income: $23, Expenses Check #500 - Supplies for book fair Check #501 – 3 rd grade field trip $ $2, Total expenses $3, Previous balance on April 12, 2015$6, Ending balance on May 12, 2015$26,510.00

Treasurer’s Report

Annual Financial Report Income Membership Income Donations $1, $22, Total income: $23, Expenses Program expenses Operating expenses $20, $3, Total expenses $23,000.00

Annual Financial Report

membership count and dues monthly a copy of all government filings (990, 199 and RRF-1) a copy of the approved budget a copy of the approved programs a copy of the mid-term and year-end audits Remit to Council/District insurance premium (annually in the fall) Workers’ Compensation Payroll Report for (November)

Handling Receipts (money received) “Two person” rule (not related or living together) – handling PTA mail that contains money – handling donations and membership dues – handling cash at a PTA fundraiser

Handling Receipts (cont.) Processing cash and checks received – “For Deposit Only” & PTA bank account # – Record all cash and every check on a CVF – Attach adding machine tape totals to CVF

Handling Receipts (cont.) “Cash Verification Form” (CVF) – Two person rule – verify and sign CVF – Deposit / attach deposit slip to the form

Authorizing Payments association “releases” the funds to board board authorizes payments association ratifies checks president/secretary sign Payment Authorization treasurer writes check

Writing Checks “Two person” rule – signers may not be related or living together Record checks in the register and ledger Present a list of checks to association for ratification

Banking Deposits Every deposit has a corresponding Cash Verification form signed by two people Deposit is counted by two people – the depositor and the bank teller

Banking (cont.) ATM and Credit Cards Never for purchases or withdrawals Deposit-only card is allowed

Banking (cont.) Bank Statements Mailed to PTA address, not someone’s home Request copies of checks written Opened and inspected by an elected officer who isn’t authorized to sign checks.

Banking (cont.) Five Minute Audit of Bank Statements Online payments or ATM withdrawals Two authorized signatures on every check Deposits and checks match reports

Banking (cont.) Reconcile Bank Statements Bank balance Vrs. Treasurer’s records Treasurer records reflect real-time

Annual Government Filings Step 1: Prepare your Annual Financial Report Step 2: File with the IRS Gross receipts < $50, N Gross receipts > $50, EZ or 990

Step 3: File with the FTB Gross receipts < $50, N Gross receipts > $50, Annual Government Filings Step 4: File with the AG RRF-1

General liability $1,000,000 Directors & officers $1,000,000 Bonding $15,000 Workers’ Compensation 1 st $1,000 is covered Insurance

Follow the Green, Yellow, Red guide Follow all PTA financial and approval procedures Insurance

Election Appoint Committees Assessments, Goals, Plans Preliminary Budget end-of-term Audit 1st PTA Meeting Approve End-of-term Audit Annual Financial Report Approve programs Approve fundraisers Adopt Budget remit dues monthly Mid-term Audit Sept March May July Nov January February August April June October December End of Term Annual Financial Report Mid-term Start of school Last PTA Meeting Approve preliminary budget Approve paying summer bills pay insurance premium Workers’ Compensation form update bank account signatures Attend training nonprofit filings (990, 199, RRF-1)

1. Collect the financial records (see audit checklist) Summary of Audit Steps 2. Audit the financial records 3. Make appropriate inquiry of treasurer as needed for clarification 4. Meet with president and financial officers to discuss recommendations and corrections 5. Complete and sign the Audit Report 6. Present to the board and to the association

Collect the financial records (see audit checklist): ledger of income and disbursements Audit Checklist checkbook registry bank statements treasurer’s reports cash verification forms payment authorization forms (w/ receipts, invoices, etc. meeting minutes (board and association meetings)

Verify STARTING BALANCES on bank statements Audit Checklist on treasurer’s reports on check registry on budget

Check BANK STATEMENTS reconciled monthly Audit Checklist match treasurer’s reports match ledger match check registry

Check MEMBERSHIP and DUES verify amount collected Audit Checklist verify amount remitted to council or district PTA

Check MINUTES REPORTS all expenditures approved in board minutes Audit Checklist all expenditures approved/ratified in association minutes Check AUTHORIZATIONS FOR PAYMENT Check CASH VERIFICATION FORMS and bank deposits Check TREASURER REPORTS

Verify that taxes have been filed. Audit Report Fill in the Audit Report form. Present the report to the association. Any association concerns should be addressed confidentially by the board. Present the report to the board and answer questions as needed.

Paying a contractor 2. Certificate of Insurance 1. W MISC Paying Workers

Paying an employee 2. Personal Income Tax 1. Register with State EDD 3. State Disability Insurance Paying Workers

Paying an employee 5. Unemployment Insurance 4. Employment Training Tax 6. Payroll Tax Deposit Paying Workers

Paying an employee 8. Social Security 7. Federal Income Tax 9. Medicare Tax Paying Workers

Paying for a school staff position 1. Deposit funds with the school district 2. Fiduciary Agreement form Paying Workers

?