What Every Treasurer Must Know Teresa Williams, National PTA Secretary-Treasurer Jeanice Aikens, National PTA Chief Financial Officer © National PTA, 2010

Title (edit on Master Slide) Subtitle Let’s Talk About Money Management Reports and IRS Regulations Insurance Needs Fund Raising Resources Best Practices

Title (edit on Master Slide) Subtitle First Steps! Make sure books are audited/financial review Check the files! Study duties and any reference to finances/budget in your PTA bylaws Secure signatures of authorized officers File signature cards with bank Check on bond and liability insurance Review PTA Money Matters

Title (edit on Master Slide) Subtitle Money Management

Title (edit on Master Slide) Subtitle Money Management Develop a realistic budget –Review Records Retention Schedule Store records properly — keep: –Copies of all Treasurer’s Reports –Bank Statements and Reconciliations –Check Request or vouchers –Deposit Receipts

Title (edit on Master Slide) Subtitle Banking Two Signatures on all checks Use Large Size Checks Duplicate Check Fees and Monthly Charges –Deposit and Withdrawals Location and Hours Online Banking Availability Monthly Statements

Title (edit on Master Slide) Subtitle Reporting Make a report at all Board meetings Develop a report to best reflects a transparent process –Budget Amount –Monthly Report –Year-to-Date Total –Balance of Line Item

Title (edit on Master Slide) Subtitle East Anywhere High School Tip: Use the program and report design that is best for you and your PTA!

Title (edit on Master Slide) Subtitle Reports And Regulations

Title (edit on Master Slide) Subtitle Reports And Regulations Follow all State and Federal guidelines Follow your approved budget, amend if needed Perform an financial review/audit at year’s end, or when needed Review relevant areas of

Title (edit on Master Slide) Subtitle Applying For Tax-exempt Status

Title (edit on Master Slide) Subtitle Resources From National PTA National PTA provides all states and local units access to resources that are easy to understand.

Title (edit on Master Slide) Subtitle Tax Code Compliance A top priority of any state, council, district, or local unit is to stay in compliance with tax codes.

Title (edit on Master Slide) Subtitle Federal Requirements Federal Tax Exempt Status – 501(c)(3) Employer Identification Number (EIN) Determination Letter of Tax Exempt Status Public Inspection Requirements Unrelated Business Income (UBI)

Title (edit on Master Slide) Subtitle A Correct And Timely Form 990 Who should file? Which form should be filed? When to file? What are gross receipts? Why is this important? What happens if we don’t file?

Title (edit on Master Slide) Subtitle Audits And Financial Reviews

Title (edit on Master Slide) Subtitle Purpose Of The PTA Audit To certify accuracy of books and records To assure membership resources are being managed properly

Title (edit on Master Slide) Subtitle Three Types Of Audits Compiled Financial Statements –Limited or no verification of information Reviewed Financial Statements –Perform some inquiry and analytical procedures – Limited assurance of information Audited Financial Statements –Highest level of assurance of information –Extensive substantiation and verification

Title (edit on Master Slide) Subtitle Preparation For Financial Review Financial records should be “put in” order Bills cannot be paid after books are closed for financial review Materials needed include –Copy of last financial review/audit –Checkbook and canceled checks –Bank statements and deposit receipts –Itemized statements and receipts of bills paid –Check requests or vouchers

Title (edit on Master Slide) Subtitle The Need For Insurance

Title (edit on Master Slide) Subtitle Why Does PTA Need Insurance Coverage? School districts generally do not cover PTA Units Protects the assets of the PTA Protects the assets of PTA members

Title (edit on Master Slide) Subtitle Types Of Coverage General Liability Fidelity Bond Directors and Officers Liability Property

Title (edit on Master Slide) Subtitle General Liability Coverage

Title (edit on Master Slide) Subtitle General Liability Coverage Who should be protected? –The PTA unit –Volunteers, PTA members What protection does general liability provide? –Actions against the PTA from injury or property damage Is there a dollar limit? –PTAs are encouraged to investigate a policy containing a $1 million limit; this is an industry standard

Title (edit on Master Slide) Subtitle Coverage Types of Events Covered –Meetings and Dinners –Book Fairs –Food Sales –Carnivals –After Prom –Graduation Parties Tips: Make sure your insurance carrier provides a list of all covered activities Never assume that your PTA is under someone else’s coverage.

Title (edit on Master Slide) Subtitle Events Not Covered Typically the following events are not covered Firework Sales Mechanical Rides Boats Watercraft Activities Organized Sports

Title (edit on Master Slide) Subtitle Fidelity Bond Coverage

Title (edit on Master Slide) Subtitle Fidelity Bond Coverage Protects the cash of the PTA unit against –Theft –Robbery –Embezzlement Who’s Covered? –All individuals who handle funds regularly Treasurer President Fund Raising Chair

Title (edit on Master Slide) Subtitle Considerations How can your PTA protect itself? –Two signatures on all accounts –Have the checking account reviewed by someone who is not a signer –Conduct an annual audit/financial review How much coverage do we need? –Each PTA should determine their own amount of coverage Tip: Match the amount of coverage to the amount of the budget.

Title (edit on Master Slide) Subtitle Officers And Directors Coverage

Title (edit on Master Slide) Subtitle Officers And Directors Coverage How are PTA Officers protected? What situations are covered? How are officers not protected?

Title (edit on Master Slide) Subtitle A “Word” About Fund Raising!

Title (edit on Master Slide) Subtitle How Many Fund Raisers Should A PTA Hold? Remember the “3 to 1 Rule” Base fund raisers on your annual budget and plan your activities Be knowledgeable of IRS Regulations Research State regulations governing non- profit fund raising

Title (edit on Master Slide) Subtitle Who Needs To Approve Contracts? Approval of contracts has an effect on your overall PTA Budget and Operations –The Board should have input –The president should sign all contracts Do not allow a vendor to push your PTA into a contract

Title (edit on Master Slide) Subtitle Tips For A Successful Event Make sure your percentages are the highest possible Does the event have a good track record with your PTA? Make sure your members know where the funds are going to be used Deposit all funds the day they are received

Title (edit on Master Slide) Subtitle Useful Resources National PTA e-Newsletters PTA Money Matters PTA Convention Handouts PTA President’s Quick Reference Guide NPTA e-learning courses –Ethical Leadership –Preventing Theft In Your PTA

Title (edit on Master Slide) Subtitle The Money Matters will arrive in the PTA Box of Possibilities!

Title (edit on Master Slide) Subtitle Another great resource developed by National PTA is the… PTA President’s Quick Reference Guide

Title (edit on Master Slide) Subtitle Contact Information Teresa Williams National PTA Secretary-Treasurer Jeanice Aikens National PTA Chief Financial Officer