Walled Lake PTSA Council Treasurer Training 8/30/2016 Walled Lake PTSA Council Treasurer Training Jennie Jungman WL PTSA Council Treasurer jjungman@ymail.com 8/30/2016 Prepared by Jennie Jungman Prepared by Jennie Jungman

Prepared by Jennie Jungman 8/30/2016 Starting Point If you have not done so, take the time to familiarize yourself with your unit’s BYLAWS & STANDING RULES. With Bylaws (the bones/overall organizational structure), there are items the Michigan PTA mandates must be included but there are many portions that are individual to the local unit, such as: Your unit’s QUORUM number (e.g. the number of members that must be present at a meeting in order to vote on business transactions) Standing Rules are the meat…They are the more detailed rules of operation. In other words, they are a critical outline of how to run the organization. For example, most PTA/PTSAs include Cash Handling Procedures in their Standing Rules. If your PTA/PTSA does not have written Cash Handling Procedures, I highly recommend documenting them. 8/30/2016 Prepared by Jennie Jungman Prepared by Jennie Jungman

Creating & Approving a Budget 8/30/2016 Creating & Approving a Budget Since our fiscal year goes from July 1st – June 30th*, it is necessary to have a budget approved before the fiscal year starts (before summer break) if you, as treasurer, will be writing checks before the first General Membership Meeting (usually in Sept.). *18 out of the 19 PTA/PTSAs in our district have the July 1st through June 30th fiscal year. However, for the one that is on a different fiscal year, the timeline for the budget will have to be individually tailored to that PTA. If you do not think you will be writing any checks before the first meeting of the school year, you can wait until September to vote on your budget. 8/30/2016 Prepared by Jennie Jungman Prepared by Jennie Jungman

Creating & Approving a Budget (Cont.) 8/30/2016 Creating & Approving a Budget (Cont.) Keep in mind: You cannot write any checks without an approved budget. 3 Possible Options: Present a Preliminary Budget at the 2nd to last meeting of the school year & vote on it at the last meeting of the year. Present a Preliminary Budget at the last meeting of the school year & vote on it at the first meeting of the new school year (September). Vote on & Approve a “Summer” Interim budget at the last meeting of the year. Then, present & vote on your school year budget at the first meeting of the school year. 8/30/2016 Prepared by Jennie Jungman Prepared by Jennie Jungman

Prepared by Jennie Jungman 8/30/2016 Amending a Budget Budgets may be amended, by vote, at a General Membership Meeting where your unit’s minimum number of voting members (quorum) are present. Unless a budget has been amended by vote, reimbursement checks should not be written for more than what the budgeted amount is. (Check your Bylaws: Some local units have it written where there is a discretionary amount, such as up to $50 over the budgeted amount.) 8/30/2016 Prepared by Jennie Jungman Prepared by Jennie Jungman

Amending a Budget (Cont.) 8/30/2016 Amending a Budget (Cont.) If an Event Chairperson needs more funds, he/she should attend the next General Membership Meeting to present a motion asking for more money. If a Special Meeting needs to be called in order to increase a budgeted expense, the General Membership must be given at least one week’s notice. When a motion is presented to increase a budgeted expense, the money must come from another budget line item. For instance, if there are one or more budgeted expense line items that are closed (e.g. all reimbursements have been paid for those events) and they came in under budget (funds are remaining), then, a motion can be presented to pull the specific $ amount from the line item/s. 8/30/2016 Prepared by Jennie Jungman Prepared by Jennie Jungman

Prepared by Jennie Jungman 8/30/2016 Last Year’s Books If a new treasurer will be taking over, make sure the books are audited before that happens. Of course, the books need to be audited, after the close of the fiscal year, even if the treasurer is the same for the next year. The audit can be done by either a CPA or a 3 person committee of non-check signers – Use the Michigan PTA Audit Form for this process. 8/30/2016 Prepared by Jennie Jungman Prepared by Jennie Jungman

Last Year’s Books (Cont.) 8/30/2016 Last Year’s Books (Cont.) The Audit & Annual Report must be presented & submitted into permanent records; This is typically done at the first or second meeting of the school year. IRS Taxing Filing: Must be received by the IRS by Nov. 15th* (Forms 990, 990-EZ, 990-N, etc.); If a CPA handles your unit’s taxes, the tax forms will need to be mailed in by this date, too. *This is the deadline for the 18 out of 19 units in our district with the fiscal year of July 1st – June 30th. Another way to assess the deadline: It is the 15th day of the 5th month after the close of your fiscal year. 8/30/2016 Prepared by Jennie Jungman Prepared by Jennie Jungman

Michigan PTA Requirements & Deadlines 8/30/2016 Michigan PTA Requirements & Deadlines In order to remain in GOOD STANDING with the Michigan PTA, each Fall* you must submit to them: A copy of your tax filing A copy of your audit A copy of the current fiscal year’s approved budget *Typically, they will send you a reminder e-mail with the deadline of Dec. 1st. Annually: Submit the Unit Dues Remittance Form w/$40 payment by June 1st. 8/30/2016 Prepared by Jennie Jungman Prepared by Jennie Jungman

Michigan PTA Requirements & Deadlines (Cont.) 8/30/2016 Michigan PTA Requirements & Deadlines (Cont.) Monthly: If you have new members, the membership roster, remittance form & payment should be submitted by the end of the month. If your unit has a Membership Chair, he/she will assist with this process.* If done online, the Membership Chair is able to submit the membership roster & remittance form. Payment can also be done online via an ACH Transaction (Electronic Check) or there is still the option to mail in a check. Link to Online Monthly Membership Remittance: http://www.michiganpta.org/?page=MonthMembRemit&hhSearchTerms=%22subm itting+and+monthly+and+membership%22 You can still process manually by mailing the remittance form and check to the State Office and submitting your monthly roster of new members as an Excel file via the online system (preferred) or by emailing to membership@michiganpta.org. * We pay the MI PTA $5.50 per member: $3.25 goes to the MI PTA & $2.25 is passed along to the National PTA. 8/30/2016 Prepared by Jennie Jungman Prepared by Jennie Jungman

Prepared by Jennie Jungman 8/30/2016 Handling of Cash Receive all monies & deposit promptly: Make sure two people (& of course there can be more than two!) count the money, completely fill-out an Event Tally Sheet & both sign the sheet to verify the amount. For those counting the money, if you want a record of all checks collected and deposited, make copies & attach the copies to the Event Tally Sheet. (This is a lot easier then writing down each check & it is a more accurate record!) Additional Reminders: If your unit does not already have one, purchase a stamp with PTA deposit info & use it when receiving checks. Utilize Duplicate Deposit Slips Maintain & publicize written money handling procedures and policies (As referenced under Starting Point, this is often part of a unit’s Standing Rules.) 8/30/2016 Prepared by Jennie Jungman Prepared by Jennie Jungman

Reimbursement Requests 8/30/2016 Reimbursement Requests Pay all bills: Make sure the person asking for the reimbursement fills out a request form with all applicable receipts, invoices or purchase orders attached. Before paying, make sure the funds are in the applicable budget line item. Does your unit have at least 2 check signers on the bank account? The minimum is 2 check signers: the treasurer & president. Recommended to have three check signers on an account (cannot be the principal of your school). This person is typically another one of your board members. 8/30/2016 Prepared by Jennie Jungman Prepared by Jennie Jungman

Prepared by Jennie Jungman 8/30/2016 Money Handling Don’ts Don’t sign a blank check. Never pay bills with cash. Don’t keep monies at anyone’s home. Don’t maintain a permanent petty cash box. Don’t make exceptions to your PTA’s policies for anyone – They are there to protect you! Don’t deposit association funds in anyone’s personal account or the school activity account. Don’t open a debit or credit card under your PTA/PTSA’s bank account. 8/30/2016 Prepared by Jennie Jungman Prepared by Jennie Jungman

Prepared by Jennie Jungman 8/30/2016 Monthly Accounting Create a Monthly Treasurer’s Report for your General Membership Meetings: Income/Receipts Section Expenditures/Disbursements Section Suggestions of Columns to Include: Actual Monthly Actual YTD Budget ($’s allocated for the year) Variance (Difference between Actual YTD & Budget) Another suggestion is to have Closed & Open Item Variance Columns. This is helpful when motions are presented to increase budgeted expenses (you are able to see the closed items and pull money from there if not all funds were used). 8/30/2016 Prepared by Jennie Jungman Prepared by Jennie Jungman

Monthly Accounting (Cont.) 8/30/2016 Monthly Accounting (Cont.) Make sure to RECONCILE your numbers with the banking. At the top of your Treasurer’s Report, have a Cash on Hand # (Beginning Balance for the Reporting Period). At the bottom, have a Balance on Hand # (Ending Balance). Also, at the end of your report, include a bank summary with checking & savings balances and a list of any not cleared checks and not cleared deposits. 8/30/2016 Prepared by Jennie Jungman Prepared by Jennie Jungman

Monthly Accounting (Cont.) 8/30/2016 Monthly Accounting (Cont.) By giving the members all of this data, you are giving them the ability to verify your accounting by tying it out to the banking, if they so choose. Make sure to update the budget, throughout the year, based on motions approved at General Membership Meetings. Have Bank Statements signed monthly by a non-check signer; This is needed if your insurance requires it (AIM Insurance requires this). Also, this simple yet important process serves as a Monthly “Mini” Audit. A treasurer needs to be VERY TRANSPARENT and this process helps to enforce this. 8/30/2016 Prepared by Jennie Jungman Prepared by Jennie Jungman

Prepared by Jennie Jungman 8/30/2016 Insurance Although it is not a requirement of the Michigan PTA Bylaws, the Michigan PTA does highly recommend each of their local units to carry insurance coverage. The most commonly referenced insurance company, in regards to PTA/PTSAs, is AIM (Association Insurance Management, Inc.). However, you may certainly shop around for the best rates for your PTA/PTSA. 8/30/2016 Prepared by Jennie Jungman Prepared by Jennie Jungman

Prepared by Jennie Jungman 8/30/2016 Insurance (Cont.) Components typically included in PTA/PTSA Insurance: Commercial General Liability Medical (Accident Medical) Non-profit Officers Liability Commercial Crime & Fidelity (Bond): This part of the coverage is what covers employee theft, forgery or alteration, inside the premises – theft of money and securities, and inside the premises – robbery or safe burglary of other property. Your insurance will not automatically include this piece. Therefore, it is important to verify if your PTA/PTSA is bonded, and if so, to verify for how much. For instance, based on my past and present treasurer positions, we are/were bonded for $10,000. 8/30/2016 Prepared by Jennie Jungman Prepared by Jennie Jungman

Prepared by Jennie Jungman 8/30/2016 Tax Letters Per the IRS (NOT Required): Monetary Contributions: Donors must have a bank record (such as a canceled check or bank statement) or written communication from a charity for any monetary contribution before the donors can claim a charitable contribution on their federal income tax returns. Donors are responsible for obtaining a written acknowledgement from a charity for any single contribution of $250 or more before the donors can claim a charitable contribution on their federal income tax returns. 8/30/2016 Prepared by Jennie Jungman Prepared by Jennie Jungman

Prepared by Jennie Jungman 8/30/2016 Tax Letters (Cont.) However, as a courtesy & a thank you to any donors who give a single monetary contribution of $250 or more, I would recommend automatically sending a letter by Jan. 31st. Here is the link to the IRS Charitable Contributions’ Booklet: https://www.irs.gov/pub/irs-pdf/p1771.pdf REQUIRED by IRS Regulations: Charitable organizations are required to provide a written disclosure to a donor who receives goods or services in exchange for a single payment in excess of $75. (Must be done by Jan. 31st – People need them in time for filing their taxes!). This is called a quid pro quo contribution. For a more detailed explanation, please reference this link on the IRS website: https://www.irs.gov/charities-non-profits/substantiating- charitable-contributions 8/30/2016 Prepared by Jennie Jungman Prepared by Jennie Jungman

Prepared by Jennie Jungman 8/30/2016 Resources Walled Lake PTSA Council Website (under the district webpage): Treasurer Documents: Event Tally Sheet Form Reimbursement Request Form Financial Checklist Presentation - May 2016 Meeting Link: http://wlcsd.org/parents/walled-lake-ptsa-council/monthly-meeting- minutes--treasurer-reports/ Michigan PTA Website: Annual Dues Remittance Form Audit Report Form Treasurer’s Monthly Remittance Form Link: http://www.michiganpta.org/?page=TreasurerResources 8/30/2016 Prepared by Jennie Jungman Prepared by Jennie Jungman

Prepared by Jennie Jungman 8/30/2016 Resources (Cont.) Michigan.gov Go to the source if you have questions or need forms for things regulated by our state government, such as: Raffle License Application Link for Raffle License Application: http://www.michigan.gov/documents/BSL-CG-1655_1370_7.pdf Sales Tax (Form 165) Link for Sales, Use, And Withholding Tax Forms And Instructions: http://www.michigan.gov/documents/taxes/78_442440_7.pdf Do not hesitate to call the applicable state office; Trust me, they are very helpful! 8/30/2016 Prepared by Jennie Jungman Prepared by Jennie Jungman

Prepared by Jennie Jungman 8/30/2016 Resources (Cont.) National PTA Website: If you have not done this already, register for the on-line National PTA Back-to-School Kit. The link to this is: ptakit.org/member. Within the Member Log In Box, you will see this at the bottom: If you are not registered and wish to view this Back-to-School Kit, please click here. Then, all you have to do is fill-in a quick one page questionnaire and submit it. Within a few minutes, you will get an email with your username and a link to set up your password…very simple! National PTA Back-To-School Kit includes the following sections: The PTA President, Membership, Programs, Fundraising, Advocacy, Communications & most importantly for us treasurers, FINANCE. 8/30/2016 Prepared by Jennie Jungman Prepared by Jennie Jungman

Prepared by Jennie Jungman 8/30/2016 Resources (Cont.) IRS.gov Their website search engine is accurate and gets you to what you are looking for quickly (For example, questions about what 990 Form to use). Lastly, once again, take the time to know your unit’s Bylaws & Standing Rules. 8/30/2016 Prepared by Jennie Jungman Prepared by Jennie Jungman