1. Thirty-Third District
Financial Officers
Training
Thirty-Third District PTA Fall Officers Training 2015
Thirty-Third District PTA Fall Officers Training

2. FIDUCIARY RESPONSIBILITIES
Protecting the assets of PTA is the fiduciary responsibility of every PTA officer
PTA funds belong to the membership of the PTA
Members must be fully informed about how the money is spent or intended to be spent by the PTA
Members must be provided with the opportunity to approve business transactions of the organization
Keeping the members informed indicates the PTA is being transparent
Thirty-Third District PTA - Financial Training
Thirty-Third District PTA Fall Officers Training

3. The Budget Process Creating the Proposed Budget
The Treasurer chairs the Budget Meeting
Design a financial plan that meets the needs of the association based on its goals and objectives for the year
Combine the best of the past with new ideas for the future
Ensure that all proposed programs and activities are in compliance with the Insurance and Loss Prevention Guide
Present the Proposed Budget to the Executive Board
Present the Proposed Budget to the association for approval
Approval of Programs – Evidence of approval of all programs and activities must be in the minutes for insurance purposes
Thirty-Third District PTA - Financial Training
Thirty-Third District PTA Fall Officers Training

4. Keeping Track of the Budget
IS THE DUTY OF THE ENTIRE BOARD!
Adoption of the budget does not authorize the expenditure of the funds
Ensure that expenses stay within budget
Inform committee chairmen of their budgeted amounts
The budget is a working document and can be revised by the association
Thirty-Third District PTA - Financial Training

5. Handling of Receipts – Financial Secretary
The Cash Verification Form
Must be used for the receipt of ALL MONIES!
All monies must be counted by two PTA members with one being an officer or chairman – the two shall not be related by blood, marriage or reside in the same household – The auditor should never count monies received
Money must be counted before leaving the school
Must be signed by all persons counting the funds
The number of MEMBERSHIPS must be reconciled and listed on the form along with any DONATIONS received
The financial secretary must verify totals and countersign the form when taking custody of the money
Thirty-Third District PTA - Financial Training
Thirty-Third District PTA Fall Officers Training

6. Handling of Receipts, cont’d
The financial secretary should issue a receipt to the event/program chairman
A receipt book should be maintained by the financial secretary
Use a receipt book which contains numbered forms in triplicate
The financial secretary should log the receipts under their appropriate budget categories for budget tracking purposes
The financial secretary should turn over the funds along with the Cash Verification Form and duplicate receipt to the treasurer in a timely manner
Thirty-Third District PTA - Financial Training
Thirty-Third District PTA Fall Officers Training

7. Making Deposits – Treasurer
All receipts must be deposited into the bank as soon as possible
Only PTA funds are to be deposited into PTA accounts - No commingling of funds
Prepare deposit slips in duplicate, the original for the bank and the duplicate for the treasurer’s records
Checks must be marked “For Deposit Only” with the PTA account number
The endorsement stamp must be safeguarded
Develop and use a system to identify checks should they be returned unpaid (i.e., NSF) from the bank
Walk-in Deposits
Night Drop Deposits
Call the local police watch commander (not 911) for an escort if you are concerned about transporting a large deposit to the bank
Deposit receipts and financial secretary’s duplicate receipts should be attached to the Cash Verification Form(s) and retained for audit
Thirty-Third District PTA - Financial Training
Thirty-Third District PTA Fall Officers Training

8. Handling Disbursements - Financial Secretary & Treasurer
Authorizations for Payment (AFP) or Check/Payment Requests must be completed for all expenses
Forms should be completed by those incurring the expenditure and must be turned in to the financial secretary who should
Check all receipts or invoices
Assign a check number
Assign a budget account number
Obtain approval or ratification from the association
Released funds can be paid upon receipt of AFP or Check Request and later ratified during an association meeting
If funds are not released, the payment must be held until it is approved by the association
Present the approved AFP or Check/Payment Request to the treasurer for issuance of check
Evidence of approval or ratification of all expenses must be in the minutes
Thirty-Third District PTA - Financial Training

9. Handling Disbursements, cont’d
Thirty-Third District PTA - Financial Training

10. Writing the Check
Payable as listed on the Authorization for Payment or Check/Payment Request only
The amount must match the authorized amount
NEVER PRE-SIGN CHECKS!!!!!
NEVER PAY IN CASH!!!!!
NEVER PAY WITH A DEBIT/ATM CARD!!!!!
Thirty-Third District PTA - Financial Training
Thirty-Third District PTA Fall Officers Training

11. Writing the Check Thirty-Third District PTA - Financial Training
Thirty-Third District PTA Fall Officers Training

12. The Treasurer’s Ledger – Receipts
CATEGORIES:
Membership
Separate local portion and amount due at membership turn-in
Fundraising
Program Services
Donations
Other
**LIST AND DEDUCT ANY RETURNED CHECKS AGAINST THE APPROPRIATE CATEGORY
Thirty-Third District PTA - Financial Training

13. Dealing with NSF Checks
NSF = Not Sufficient Funds
Deduct all returned checks from Receipts and any bank fees from Disbursements
Deal with NSF Checks ASAP
Collect the total of the returned check and any bank fees
When collected enter the amount of the check back into the Receipts and deduct the collected bank fee from the Disbursements
Thirty-Third District PTA - Financial Training

14. The Treasurer’s Ledger - Disbursements
CATEGORIES:
Student Welfare
Awards, scholarships, room parties, gifts to school, parent ed
Fundraising
Organizational
Expense
Officer’s & Chairmen’s expenses, convention, insurance and supplies
Other
List anything that does not come under any other category
**LIST AND DEDUCT ANY VOIDED CHECKS FROM THE APPROPRIATE CATEGORY
Thirty-Third District PTA - Financial Training

15. Reconciling the Bank Statement
The bank statement should be reviewed monthly by a non-check signer to ensure there are no irregularities before forwarding to the treasurer
The treasurer must reconcile the bank statement monthly
Verify checks written to checks posted on bank statement
List and total any outstanding checks
Verify deposits made to deposits posted on bank statement
List and total any un-posted deposits
Add any un-posted deposits and deduct any outstanding checks to bank statement balance
Total must agree with your checkbook balance
Online Banking
It is acceptable to use online banking to obtain a bank statement
It is not acceptable to transfer funds online - All disbursements must have 2 signatures
Thirty-Third District PTA - Financial Training

16. Financial Secretary’s Report
Prepared and presented monthly at Executive Board and association meetings, and at other times when requested by the association
The report must include an accurate record of all individually itemized receipts
Subtotal receipts by category
Total receipts must agree with amount actually transferred to the treasurer
In the event that a unit does not have a financial secretary, all receipts must be individually itemized on the Treasurer’s Report
Thirty-Third District PTA - Financial Training

17. Thirty-Third District PTA - Financial Training

18. Treasurer’s Report
Prepared and presented monthly at Executive Board and association meetings, and at other times when requested by the association
The Treasurer’s Report must contain
Balance on Hand as of the last report
Total Receipts as received from the financial secretary – If the unit does not have a financial secretary, the Treasurer’s Report must include an itemized list of receipts for the monthly period
Itemized Disbursements including the check number, issue date, payee and description
Disbursements requiring ratification by the association should be flagged
Balance on Hand as of the date of the report
Savings account balances and activity
Required - Provide a copy of your unit Treasurer’s Report to your council monthly
Thirty-Third District PTA - Financial Training
Thirty-Third District PTA Fall Officers Training

19. Thirty-Third District PTA - Financial Training

20. COMPUTER-GENERATED FINANCIAL RECORDS
A monthly printed record must be kept in a permanent binder showing title and time covered
Maintain a checkbook register with the current balance at all times
A backup of financial files should be done monthly
Electronic payments or wire transfers are NOT allowed
Bylaws require two signatures on all checks
Thirty-Third District PTA - Financial Training
Thirty-Third District PTA Fall Officers Training

21. PTA-EZ PTA EZ – www.ptaez.com
“created by PTA Leaders exclusively for your local unit”
Accounting and Management - a comprehensive web- based solution
Costs based on Revenue:
$99 to $219 per year
Optional items:
Online store - $30
Form $100
Form 990 EZ - $80
State tax - $30
Does take time to set up initially
Thirty-Third District PTA - Financial Training
Thirty-Third District PTA Fall Officers Training

22. Reporting at Monthly Meetings
The financial secretary should present his/her report by reading subtotals by category and total receipts for the month
The treasurer should present Balance on Hand as of the last report, total receipts, total disbursements and Balance on Hand as of the date of the report
The financial secretary should move to ratify checks issued since last association meeting listing them individually and giving a total
The financial secretary should move to approve bills to be paid submitted prior and during the meeting listing them individually and giving a total
Checks to be Ratified and Bills to be Paid Form
Thirty-Third District PTA - Financial Training
Thirty-Third District PTA Fall Officers Training

23. Ratify Checks & Approve Bills to be Paid
Thirty-Third District PTA - Financial Training

24. Making a Motion - To Ratify Checks & Approve Bills to be Paid
Checks to be Ratified should be listed on the Treasurer’s Report
Bills to be Paid will be submitted to the financial secretary during the meeting
The president should make an announcement at the start of the meeting requesting that all Authorizations for Payment/Check Requests be turned into the financial secretary
Upon approval of motions, the form should be given to the recording secretary to facilitate the inclusion of the details of both motions in the minutes
Thirty-Third District PTA - Financial Training

25. Reporting at Monthly Meetings
Approval of fundraisers
Approval of upcoming activities
Release funds from the budget
Budget Update
Thirty-Third District PTA - Financial Training

26. Preparing for the Audit
Tying up the Loose Ends…
Complete and pay all pending authorizations
Research and clear all outstanding checks
Organize records for the auditor
Deliver books and records to the auditor in a timely manner
Audits must be conducted two times per fiscal year and anytime a check signer resigns and/or upon request by the Executive Board.
Mid-year covering July 1 through December 31
End of school year covering January 1 through June 30
Thirty-Third District PTA - Financial Training

27. Sample Audit Report (blank)
Thirty-Third District PTA - Financial Training
Thirty-Third District PTA Fall Officers Training

28. Thirty-Third District PTA - Financial Training
Thirty-Third District PTA Fall Officers Training

29. Annual Treasurer’s Financial Report
Reports gross receipts and disbursements for the fiscal year. Our fiscal year runs from July 1 through June 30.
It is used by tax preparers to file taxes
The council and district PTA also requires this report
Units are to prepare their own Annual Treasurer’s Financial Reports
Contact council for the excel file which includes treasurer’s book reconcilement of monthly receipts and disbursements
Thirty-Third District PTA - Financial Training
Thirty-Third District PTA Fall Officers Training

30. TAXES, CHARITABLE TRUST NUMBER & RRF-1 FORM
All PTAs must file a federal and a state tax return
Due on the 15th day of the fifth month after the end of the fiscal year or November15th
Copies must be turned into council
Every PTA must already have or register for a charitable trust number immediately
RRF-1 form (registration/renewal fee report for charitable trust numbers) must be filed annually within four months and 15 days after the end of fiscal year or November15th
Thirty-Third District PTA - Financial Training

31. Tax Return Search Resources
Federal tax returns:
990N:
Go to
Choose “Have filed form 990N”
Enter information, preferably the EIN. (Most units and councils show up under the general name of “PTA California Congress of Parents Teachers & Students Inc.” since we’re all under State PTA’s group exemption.) Hit Search.
Results are listed by “Tax Year.” A tax year of 2014 refers to the period from March February 2015.
990EZ/990:
Go to
Enter the EIN. Hit Find.
The column that says “Year” does not refer to the tax year. It seems like it might refer to when the return was received. So a Year of 2013 generally will bring up a return with the period from March 2012-February 2013.
Please note that there is generally a lag time between when IRS receives a paper return and when it gets posted. It’s good for looking up returns that should have been sent more than a month or two ago.
State tax returns: Currently there is no way to verify state tax returns online.
Thirty-Third District PTA - Financial Training

32. RRF-1 (CT # / Raffle Registration) and SI-100 Search Resources
CT number and RRF-1 and Raffle Registration:
Go to
Enter EIN or FTB number. Hit Search. This website is pretty slow, so you might have to wait for a minute before any results come up. Also, if the EIN doesn’t work, try using the FTB number.
Click on the appropriate result. If you’re looking up RRF-1s, click the result with the Charitable Trust number.
Basic CT information will be at the top. Scroll down for RRF-1 information. Scroll to the bottom for links to copies of submitted forms and correspondence.
SI-100: (for Incorporated Councils and Units Only)
To check the SOS (Secretary of State) status:
Go to
Click on “Entity Number” search type button
Enter “Entity Number” (which is the Corporation #). Hit Search.
Click on the council or unit name to get the detailed list of information
Thirty-Third District PTA - Financial Training

33. Questions & Answers Thirty-Third District PTA - Financial Training
Thirty-Third District PTA Fall Officers Training