1. MONEY MATTERS
101

2. DUTIES OF THE TREASURER
The treasurer is the elected custodian of the PTA’s fund, financial records and official membership list.
What are some of the specific duties of the treasurer?
Have a discussion of the duties listed in the course book.

3. 501 (c) (3) Organization
PTAs are private and autonomous, and not connected to schools
PTA Mission Statement in relation to tax-exempt status
Protecting tax-exempt status

4. PROTECTING PTA’s TAX – EXEMPT STATUS
Strict compliance with all applicable federal, state and local laws is extremely important to prevent even the most well-intentioned effort from becoming a serious problem for a PTA.
See IRS Publication 557, Tax-Exempt Status for Your Organization
Available online at:
Also see IRS Stay Exempt

5. “Federal Employer Identification Number” or “Federal Tax ID” required under the rules for 501 (c) (3) tax-exempt organization
Obtained from IRS when the PTA is organized
Notify Illinois PTA office of your FEIN immediately upon receipt
Not to be confused with the State Sales Tax Exemption Number
EIN FEIN TAX ID Number

6. AUDIT First step in building a budget;
Purpose: to certify accuracy of PTA’s financial records;
Audit committee members and procedure found in bylaws and/or standing rules;
Procedure: time frame, reporting to members, adoption of report

7. AUDIT REPORT Name of PTA Fiscal year covered Opening balance
Gross receipts (+)
Expenditures (-)
Ending balance
Reconciliation to final bank statement
Certification of audit committee
See sample Audit Report in the course book Appendix

8. Documents needed for Audit Committee
Check book and check register
Bank statements, cancelled checks, deposit slips, official correspondence with bank (cancelled checks should be kept with appropriate bank statements until the audit is conducted, at which time they may be attached to corresponding expense vouchers)

9. Documents needed for Audit Committee continued
Ledger and receipt book
Expense vouchers and invoices/receipts for all disbursements
Treasurer's record of membership
Financial reports and any other documents relating to PTA finances
Copies of secretary's minutes

10. BUDGET The budget should reflect the goals and purposes of the PTA;
Anticipated income and expenditures should be equal;
Categorical expenses are broken down;
Adoption and amendment is by membership only.
See sample Budget in your course book appendix
BUDGET

11. PTA funds should be budgeted for purposes that advance PTA work.
Funds should be raised within the context of the mission and Purposes of the PTA
Follow the policies of the National PTA and the government regulations for 501 (c) (3) tax-exempt organizations.
FUNDRAISING

12. PTA’s purpose is not to be the fundraising vehicle for the school or school district. Any funds generated by a PTA, including the local portion of dues, should be predetermined and budgeted for the purposes that advance PTA work.
Participation in local, council, district or region PTA activities and training; and State and National PTA Conventions is an appropriate and important use of PTA funds for their benefit in leadership development.

13. DUES Currently $4.50 per member: $2.25 to Illinois PTA
$2.25 to National PTA
Treasurer and Membership Chairman work together to make sure number of members and dues collected agree
Membership Chairman should keep a current list of all members
First dues payment is due to Illinois PTA State Office postmarked no later than October 1 of each year
DUES

14. The IRS requires that all dues deposited into your PTA account are considered gross receipts for the purpose of Federal 990 reporting.
State and National portion of dues should be separated for purposes of reporting income to your membership.

15. MANAGING MONEY
Ledger – record income and expenses to the appropriate line item in the adopted budget
Check Register – a general listing of receipts and expenditures in date order

16. Managing Money continued
Expense Voucher – to accompany disbursement
Deposit Voucher – to accompany any money collected
Counting Money – at least two people should verify cash received

17. PTAs should keep funds in their own bank account; never deposit funds into school or school district accounts or personal accounts
Two people should sign checks
Never sign blank checks
Never keep cash from PTA events at home for extended periods of time; deposit cash immediately after event
Bank statements should be reviewed by non-signatory
BANK ACCOUNTS
Have additional discussion of bank statements as needed.

18. INTEREST BEARING ACCOUNTS
Making your money work for you is fiscally responsible!
Long-range project reserves?
Report all interest to the IRS
Discuss PTAs who have reserves

19. ELECTRONIC BANKING
What is Electronic Banking and EFT? (Electronic Funds Transfer)?
Refers to the movement of funds from one bank account to another
Has become significant factor in today’s world
Must enter into agreement with a financial institution to use EFT
Examples of EFT (including ATMs)
General Electronic Banking Controls
Secure passwords

20. CREDIT CARDS Accepting credit card payments
PTAs are discouraged from using credit cards for purchases

21. TREASURER’S FINANCIAL REPORT
Presented at each meeting of PTA – executive board and general membership
Include opening balance, receipts and disbursements for a specific period of time, and a closing balance.
See sample Treasurer’s Reports in the course book Appendix
TREASURER’S FINANCIAL REPORT

22. GOVERNMENTAL REPORTING
Federal 990 as required by your PTA’s gross receipts
Form 1099 – Misc. – Statement for Recipients of Miscellaneous Income
If required
Annual Report to Secretary of State required for all non-profit corporations
AG 990-IL – required for non-profit organizations with net income in excess of $50,000
Have discussion of details of each report and when to file them.

23. See 990EZ and 990 forms for instructions on which Schedules
990N: gross receipts are less than or equal to $50K
990EZ: gross receipts are greater than $50K but less than $200K
990: gross receipts are equal to or greater than $200K
See 990EZ and 990 forms for instructions on which Schedules
may need to be included.
All forms are due to the IRS no later that the 15th day of the 5th month after your tax year ends.

24. INCORPORATION
Provides additional liability protection for individual PTA members.
Complete Form NFP-102 at
Registered agent
Record Certificate of Incorporation
Annual Report
Amend bylaws as directed
Officers and Directors can be the same people. A single person can be both an officer and director and can be listed as such on the form. So one person is listed twice.

25. INSURANCE
Liability – general coverage to protect you from incidents at PTA events
Bonding –coverage for protecting your PTA from theft or dishonesty. PTA offers blanket bonding coverage. Check the specifics of your PTA’s coverage on your insurance policy.
See AIM insurance information in the Illinois PTA Local Unit Packet.

26. USEFUL TOOLS Legal document file Volunteer hours record Reminders
Records Retention Schedule
USEFUL TOOLS

27. APPENDIX www.illinoispta.org 800 877-9617 Springfield, IL 62705-0907
Sample Expense Voucher
Sample Deposit Voucher
Sample Cash Box Request Form
Sample Audit
Sample Budget
Sample Monthly Treasurer’s Report
Sample Annual Financial Report
Illinois Sales Tax and PTA
Sales Tax Liability for Certain Fundraisers
Sample Completed 990-EZ with Schedules
Information Needed to Complete Form 990N
PTA Budget Exercise
Springfield, IL
Illinois PTAP.O. 907

28. RESOURCES Illinoispta.org PTA.org www.cyberdriveillinois.com
irs.gov