Session 102: Treasurers for Non- Treasurers Jennifer Young, Treasurer Virginia PTA 2012 Annual Conference July 13, 2012

The ABC’s Audits, Budgets, Controls

Learn who does an audit and when. Learn how to develop a budget. What controls need to be in place to correctly maintain the PTA/PTSA’s funds. In this session we will:

Before a new treasurer takes over At the end on each fiscal year – Should be done within a month of year-end – Should be done right away if treasurer resigns When do you Audit?

Who completes the Audit? An auditing committee of at least three – Can not be signers on the unit’s account(s) Or an accountant or person with excellent working knowledge of PTA accounting procedures.

What is Audited? Treasurer’s reports Check book and register Bank statements Deposit slips Receipts Receipt book Previous audit report

Present audit report at the general meeting. Written audit report given to President, Secretary and Treasurer. President calls for approval of the audit report. This is the actual acceptance of the monthly financial reports that had been put on file. – Auditor or auditing committee all sign and date the report at the time it is filled out Audit Report

Questions?

Budget: Supply Line Development – Look at actual income and expenses from last yr. – Look at what income is needed to achieve goals. – Decide what will be added or deleted. – Make sure to include money for training, advocacy, and leadership development. – Include start up funds for next year

Budget: Getting it Approved Present it to the full board Make approved adjustments Present it to the general membership for approval

Live within the Approved Budget Only approved expenses can be paid If an expense is in the budget, it can’t be voted against as the budget has already been approved Budget changes must be approved by 2/3 vote at a general meeting Keep track of each line item’s income and expenses.

Are you using it to further your purpose/mission? For every fundraising activity, there should be at least three non-fundraising projects/programs aimed at helping parents or children or advocating for school improvements: FundraiserPrograms Gift Wrap Catalog Sales Take Dad to School Day Fall Carnival Reflections Program The 3-to-1 Rule

PTA Fundraising You don’t need to have a fundraiser Don’t raise funds, just to raise funds – you should have a purpose for the money Plan what you want to do then plan how to raise funds to do it No set amount that you can have, but if you have savings account, it should be earmarked for something

Questions?

501(c)(3) Organization Sales tax exempt - Income tax exempt Donations by donors are treated as charitable contributions for tax purposes Must be organized and operate according to the mission set forth in the bylaws: Advocate for the health, education and welfare of all children. Non-sectarian Non-commercial Non-partisan --Cannot engage in political activity --CAN engage in insubstantial amount of lobbying Resources cannot be used for private benefit

IRS Form 990 All units must file 990, 990-EZ, or 990-N e-Postcard by the 15 th of the 5 th month after the end of fiscal year.

Insurance Check the renewal date of the policy All treasurers (and officers) should be bonded RV Nuccio offers insurance to PTAs or you can get insurance from any other company

Have bank statements sent to school Have a non-signer go over the bank statements (required by some insurance plans) Reconcile statements in a timely manner Banking

To Protect the Association and the Officers: Never sign a blank check Never mix PTA money with school money Never open a credit card Never hold PTA money overnight

Handling Money Try to avoid cash if possible Always have two people count the cash Fill out and sign cash verification form Treasurer counts cash with chair Treasurer gives chair a receipt for cash and keeps a copy Deposit slip filled out and deposit made

Writing Checks Have up-to-date signature cards on file at bank Always have two signatures on checks – Married couples and family members should never be on the account together Never sign a blank check Get receipts before signing the check

Financial Statements Provided at each meeting – Balance from last meeting – Plus the itemized income – Less the itemized expenses – Current balance – Budget vs Actual

Resources Money Matters from National PTA Financial section in VA PTA LURG State Treasurer Leadership Training Conference National PTA E-learning District Training Events

For more information contact: Jennifer Young, Treasurer, Virginia PTA