1. Treasurer Basics Georgia PTA presents…
Welcome to Georgia PTA’s online learning training modules. My name is Susan Hayes, Leadership Development Chair for Georgia PTA, and I will be taking you through today’s workshop: treasurer basics.

2. Duties of the Treasurer
Bylaws Article VII, Section 4
The Treasurer shall:
Have custody of the funds of this local PTA/PTSA;
Maintain a full account of the funds of this local PTA/PTSA;
Make disbursements as authorized by the president, or Board of Directors of this local PTA/PTSA in accordance with the budget adopted by this local PTA/PTSA;
When you go to the bank you will need: all three officers designated to sign checks and two of the outgoing officers who are currently authorized to sign checks to go with you. Bring a dated copy of the election meeting minutes in which all the newly elected officers names are on. you will need to know your Employer Identification Number, Checking Account Number and local unit PTA number. Because PTA requires two signatures on every check, the use of a PTA debit card, credit card, ATM card is NOT permitted.
Buy one large binder for a high school, two for an elementary and some middle schools. Ones that have a clear sleeve on the side and front to insert a label with the school name, the year and treasurer’s books are good to use.
 Use tabs to label the following sections: annual financial report, audit, bank statements, blank cash verification forms, blank check request forms, budget, bylaws, check register (printout), completed cash verification forms, correspondence & insurance, minutes, pending, sales tax letter, school/ptsa calendar, tax return, treasurer’s reports and then tabs 1-12 for the months (Put the completed check request forms in this section and start them with the month that school begins on).
 Checklist in the front – GA PTA has a good one in the leadership guide.
The existence of a corporation serves to establish protection for, and limit the liability of, the individual members of the PTAwhile performing PTA business.
Incorporating does nothing to change the liability of the PTA in the event of a lawsuit, but individual personal liability will be minimized.
Once incorporated, in order to maintain your unit’s incorporation, an annual registration renewal fee of $30.00 must be paid each year to Georgia PTA, who submits it on your behalf to the Secretary of State’s Office in March.

3. Duties of the Treasurer
Bylaws Article VII, Section 4
The Treasurer shall:
Have checks signed by two people: the treasurer and one other person. Individuals authorized to sign checks shall not be related to each other by marriage or any other relationship;
Never sign a blank check;
Pay all bills by check – never by cash;
When you go to the bank you will need: all three officers designated to sign checks and two of the outgoing officers who are currently authorized to sign checks to go with you. Bring a dated copy of the election meeting minutes in which all the newly elected officers names are on. you will need to know your Employer Identification Number, Checking Account Number and local unit PTA number. Because PTA requires two signatures on every check, the use of a PTA debit card, credit card, ATM card is NOT permitted.
Buy one large binder for a high school, two for an elementary and some middle schools. Ones that have a clear sleeve on the side and front to insert a label with the school name, the year and treasurer’s books are good to use.
 Use tabs to label the following sections: annual financial report, audit, bank statements, blank cash verification forms, blank check request forms, budget, bylaws, check register (printout), completed cash verification forms, correspondence & insurance, minutes, pending, sales tax letter, school/ptsa calendar, tax return, treasurer’s reports and then tabs 1-12 for the months (Put the completed check request forms in this section and start them with the month that school begins on).
 Checklist in the front – GA PTA has a good one in the leadership guide.
The existence of a corporation serves to establish protection for, and limit the liability of, the individual members of the PTAwhile performing PTA business.
Incorporating does nothing to change the liability of the PTA in the event of a lawsuit, but individual personal liability will be minimized.
Once incorporated, in order to maintain your unit’s incorporation, an annual registration renewal fee of $30.00 must be paid each year to Georgia PTA, who submits it on your behalf to the Secretary of State’s Office in March.

4. Duties of the Treasurer
Bylaws Article VII, Section 4
The Treasurer shall:
Never deposit funds of this PTA in a personal account or a school account;
Always issue a receipt for cash received;
Maintain a full and accurate account of the receipts and disbursements in the books belonging to this PTA/PTSA;
When you go to the bank you will need: all three officers designated to sign checks and two of the outgoing officers who are currently authorized to sign checks to go with you. Bring a dated copy of the election meeting minutes in which all the newly elected officers names are on. you will need to know your Employer Identification Number, Checking Account Number and local unit PTA number. Because PTA requires two signatures on every check, the use of a PTA debit card, credit card, ATM card is NOT permitted.
Buy one large binder for a high school, two for an elementary and some middle schools. Ones that have a clear sleeve on the side and front to insert a label with the school name, the year and treasurer’s books are good to use.
 Use tabs to label the following sections: annual financial report, audit, bank statements, blank cash verification forms, blank check request forms, budget, bylaws, check register (printout), completed cash verification forms, correspondence & insurance, minutes, pending, sales tax letter, school/ptsa calendar, tax return, treasurer’s reports and then tabs 1-12 for the months (Put the completed check request forms in this section and start them with the month that school begins on).
 Checklist in the front – GA PTA has a good one in the leadership guide.
The existence of a corporation serves to establish protection for, and limit the liability of, the individual members of the PTAwhile performing PTA business.
Incorporating does nothing to change the liability of the PTA in the event of a lawsuit, but individual personal liability will be minimized.
Once incorporated, in order to maintain your unit’s incorporation, an annual registration renewal fee of $30.00 must be paid each year to Georgia PTA, who submits it on your behalf to the Secretary of State’s Office in March.

5. Duties of the Treasurer
Bylaws Article VII, Section 4
The Treasurer shall:
Not sign checks for this PTA after the books are closed for audit;
Report the findings of the annual audit to this PTA/PTSA no later than the first general meeting of the new school year;
Determine the gross receipts for the previous fiscal year and file the appropriate federal tax form(s) with the IRS;
When you go to the bank you will need: all three officers designated to sign checks and two of the outgoing officers who are currently authorized to sign checks to go with you. Bring a dated copy of the election meeting minutes in which all the newly elected officers names are on. you will need to know your Employer Identification Number, Checking Account Number and local unit PTA number. Because PTA requires two signatures on every check, the use of a PTA debit card, credit card, ATM card is NOT permitted.
Buy one large binder for a high school, two for an elementary and some middle schools. Ones that have a clear sleeve on the side and front to insert a label with the school name, the year and treasurer’s books are good to use.
 Use tabs to label the following sections: annual financial report, audit, bank statements, blank cash verification forms, blank check request forms, budget, bylaws, check register (printout), completed cash verification forms, correspondence & insurance, minutes, pending, sales tax letter, school/ptsa calendar, tax return, treasurer’s reports and then tabs 1-12 for the months (Put the completed check request forms in this section and start them with the month that school begins on).
 Checklist in the front – GA PTA has a good one in the leadership guide.
The existence of a corporation serves to establish protection for, and limit the liability of, the individual members of the PTAwhile performing PTA business.
Incorporating does nothing to change the liability of the PTA in the event of a lawsuit, but individual personal liability will be minimized.
Once incorporated, in order to maintain your unit’s incorporation, an annual registration renewal fee of $30.00 must be paid each year to Georgia PTA, who submits it on your behalf to the Secretary of State’s Office in March.

6. Duties of the Treasurer
Bylaws Article VII, Section 4
The Treasurer shall:
Be prepared to answer all questions promptly and to have records available at all meetings;
Provide a written financial statement at each meeting of the general membership, Board of Directors and Executive Committee;
Present an annual report of the financial condition of the organization;
Have the accounts examined annually at the end of the school year or upon the change of treasurer by an auditor or committee
When you go to the bank you will need: all three officers designated to sign checks and two of the outgoing officers who are currently authorized to sign checks to go with you. Bring a dated copy of the election meeting minutes in which all the newly elected officers names are on. you will need to know your Employer Identification Number, Checking Account Number and local unit PTA number. Because PTA requires two signatures on every check, the use of a PTA debit card, credit card, ATM card is NOT permitted.
Buy one large binder for a high school, two for an elementary and some middle schools. Ones that have a clear sleeve on the side and front to insert a label with the school name, the year and treasurer’s books are good to use.
 Use tabs to label the following sections: annual financial report, audit, bank statements, blank cash verification forms, blank check request forms, budget, bylaws, check register (printout), completed cash verification forms, correspondence & insurance, minutes, pending, sales tax letter, school/ptsa calendar, tax return, treasurer’s reports and then tabs 1-12 for the months (Put the completed check request forms in this section and start them with the month that school begins on).
 Checklist in the front – GA PTA has a good one in the leadership guide.
The existence of a corporation serves to establish protection for, and limit the liability of, the individual members of the PTAwhile performing PTA business.
Incorporating does nothing to change the liability of the PTA in the event of a lawsuit, but individual personal liability will be minimized.
Once incorporated, in order to maintain your unit’s incorporation, an annual registration renewal fee of $30.00 must be paid each year to Georgia PTA, who submits it on your behalf to the Secretary of State’s Office in March.

7. Duties of the Treasurer
Bylaws Article VII, Section 4
The Treasurer shall:
Reconcile the bank statements monthly and have the statements reviewed, signed and dated by a PTA member. This PTA member shall not be related to the treasurer by marriage or any other relationship; and
Perform such other duties as may be provided for by these bylaws, prescribed by the parliamentary authority, or directed by the president, the Board of Directors, or the Executive Committee
When you go to the bank you will need: all three officers designated to sign checks and two of the outgoing officers who are currently authorized to sign checks to go with you. Bring a dated copy of the election meeting minutes in which all the newly elected officers names are on. you will need to know your Employer Identification Number, Checking Account Number and local unit PTA number. Because PTA requires two signatures on every check, the use of a PTA debit card, credit card, ATM card is NOT permitted.
Buy one large binder for a high school, two for an elementary and some middle schools. Ones that have a clear sleeve on the side and front to insert a label with the school name, the year and treasurer’s books are good to use.
 Use tabs to label the following sections: annual financial report, audit, bank statements, blank cash verification forms, blank check request forms, budget, bylaws, check register (printout), completed cash verification forms, correspondence & insurance, minutes, pending, sales tax letter, school/ptsa calendar, tax return, treasurer’s reports and then tabs 1-12 for the months (Put the completed check request forms in this section and start them with the month that school begins on).
 Checklist in the front – GA PTA has a good one in the leadership guide.
The existence of a corporation serves to establish protection for, and limit the liability of, the individual members of the PTAwhile performing PTA business.
Incorporating does nothing to change the liability of the PTA in the event of a lawsuit, but individual personal liability will be minimized.
Once incorporated, in order to maintain your unit’s incorporation, an annual registration renewal fee of $30.00 must be paid each year to Georgia PTA, who submits it on your behalf to the Secretary of State’s Office in March.

8. Incoming Treasurer Responsibilities
Go to the bank to change the check signers on the account. You should have three if possible. Do not allow the bank to sign you up for a debit card!
Make sure the audit is complete.
Audit Report findings should be reported to the board and general membership at the first meeting of the year.
Audit Report is due to Georgia PTA by Sept 30, 2015.
Receive the books
Checks
Manual or computerized check register
Check on the insurance and bonding policy to make sure it is up to date.
Make sure the annual incorporation renewal fee has been paid. ($30.00)
When you go to the bank you will need: all three officers designated to sign checks and two of the outgoing officers who are currently authorized to sign checks to go with you. Bring a dated copy of the election meeting minutes in which all the newly elected officers names are on. you will need to know your Employer Identification Number, Checking Account Number and local unit PTA number. Because PTA requires two signatures on every check, the use of a PTA debit card, credit card, ATM card is NOT permitted.
Buy one large binder for a high school, two for an elementary and some middle schools. Ones that have a clear sleeve on the side and front to insert a label with the school name, the year and treasurer’s books are good to use.
 Use tabs to label the following sections: annual financial report, audit, bank statements, blank cash verification forms, blank check request forms, budget, bylaws, check register (printout), completed cash verification forms, correspondence & insurance, minutes, pending, sales tax letter, school/ptsa calendar, tax return, treasurer’s reports and then tabs 1-12 for the months (Put the completed check request forms in this section and start them with the month that school begins on).
 Checklist in the front – GA PTA has a good one in the leadership guide.
The existence of a corporation serves to establish protection for, and limit the liability of, the individual members of the PTAwhile performing PTA business.
Incorporating does nothing to change the liability of the PTA in the event of a lawsuit, but individual personal liability will be minimized.
Once incorporated, in order to maintain your unit’s incorporation, an annual registration renewal fee of $30.00 must be paid each year to Georgia PTA, who submits it on your behalf to the Secretary of State’s Office in March.

9. In Good Standing Requirements to be “In Good Standing”
Pays state and national dues on a monthly basis and annually and has a minimum of 25 members
Has approved bylaws on file at the state office
Submits an annual audit report to the state office by the last business day in September
Submits annually to the Internal Revenue Service (IRS) the appropriate 990 by applicable IRS due date and submit to GA PTA the IRS 990 Filing Verification Form with a copy of the first page of the 990EZ or 990-N as a receipt
Pays Council dues

10. Your PTA’s 501(c)3 Status
The IRS classifies PTAs as a tax exempt 501(c)(3) organization.
To insure this status, PTA must ensure that fundraising is not the primary focus
PTA’s are exempt from paying federal income tax on money earned and donors may deduct charitable contributions
Every PTA has an EIN number
a local unit pta that fails to file the required e-postcard for three consecutive years automatically loses its tax exempt status.

11. The Budget
Over the summer, work on the new school year budget.
Use information from last year
Communicate with board members to see what the goals are for the year in relations to school needs
Must have a balanced budget in place to be voted on in the first general membership meeting
Your previous year’s budget gets you through your FIRST budget approval for this year. (page 108 of LRG)
An initial budget must be developed before the first general meeting
The president, and treasurer along with input from many other officers should be involved
The budget should be based on your mission determining programs and projects for the next year
If continue to carryover large sum of money may think about reducing fundraisers
Budget Process
• Budget Committee prepares proposed budget
• Present proposed budget to Board of Directors
Present proposed budget to General Membership for approval
We have to remember – this is the membership’s money and they have final say. The budget should be transparent – the presentation should be clear to the membership where funds are expected to come from and how the funds will be spent
The Budget is an estimate of the expected income and planned expenses for the year.
The budget can and should be amended throughout the year.

12. Meetings Monthly Board meetings General Membership Meetings
Present a written detailed Treasurer’s Report
Include the cash balance
General Membership Meetings
Present a written detailed Treasurer’s Report
Present the revised budget for vote
Should be revising the budget every general membership meeting

13. Bank Reconciliations
The checking account should be reconciled at the end of each month
A copy of the bank statement that includes check images along with bank reconciliation report should be printed out every month
The treasurer, president and one non-check signer should review the bank reconciliation and bank statement and sign it every month

14. Processing Deposits & Payments
Cash Verification Form (find the blank form on
Two others should be counting the money
Treasurer is the 3rd counter, not 1st or 2nd
Make sure the form is filled out completely
Make the deposit within reasonable amount of time
Processing Payments
Check Request Form (find the blank form on
Do not write a check without a check request form and original receipts attached
Every check needs two signatures
No checks written for cash
Do not use a debit card
A check should only be issued with a check request form and original receipts attached
A check is never issued for cash
Cash should always be counted by two people before it is given to the treasurer
The treasurer is the 3rd and final counter
Cash Verification forms should be used all money collected either cash or check or electronically
If using Square or GoPayment, a report should be printed that matches the amount on the cash verification form
A check must be issued to a person or company
Never use a debit card in the name of the PTA for any transactions
All check request form should be approved by the President
All checks need to be signed by two check signers, the treasurer and another which will most likely be the president

15. Event Prep Have cash boxes ready with cash verification forms
Cash boxes should be counted after the event and recorded on the Cash Verification Form by two counters (treasurer is third counter)
If Using Square or GoPayment, print out reports, attach to the cash verification form and sign
No one takes the money home
Deposit the money immediately or the very next day

16. Electronic Banking For RECEIPT of funds only
Use a cash verification form and print out the statements.
Unit may not pay by credit card, debit card, or online transfer
Accepting Credit Cards The ability to accept credit and debit cards as payments for local units is increasing in demand and becoming more widely available through use of mobile devices such as smartphones or tablets. When a local PTA decides to accept credit cards as a form of payment, a review of internal controls will need to be conducted to ensure policies and procedures are acceptable and in line with best practices.
— finance section for more details on accepting credit cards and Paypal

17. Donations
Contributions to the PTA are tax deductible in full if no service or other benefit is received in return.
Single cash contributions in excess of $250 require a receipt documenting the charitable donation to the PTA.
If the donor claims the value of a non-cash contribution of $250 or more, the PTA is required to furnish a written acknowledgement as well, following similar guidelines for cash contributions. However, the PTA is not required to, and should not, place a value on the contributed item(s) for the donor.

18. Corporate Sponsorship
Sponsorship is simply the donation of money, goods or services by a business to a PTA in return for a public acknowledgement of that donation.
For example, a company donates money to the PTA to pay for a Parent Involvement Guide. On the back of the book, the PTA prints the company's name as the
sponsor.
Corporate Sponsorship – Thank a business partner for sponsoring an event or publication
Non-commercialism – you cannot call someone the official whatever of PTA. Chick fil A may donate or give you a great deal but you cannot call them the “official fast food of ABC PTA” You can thank them and that’s it.
In commercial co-venturing, the PTA only receives the donation (usually cash) to the extent the donor's business is patronized and it is usually measured as a percentage of sales. PTAs cannot make a quantitative statement about or endorse a business or product. Active promotion, sale or marketing of the business products or services by a PTA and its members would, in most cases, violate PTA’s noncommercial policy. It could jeopardize the PTA’s status with the IRS.
9. How does sponsorship, which is acceptable and encouraged, differ from commercial co-venturing, which is discouraged?
In a sponsorship arrangement, the only thing the PTA gives the sponsor in return for the donation (whether it is cash or goods or service) is a public “thank you.” The benefit to the company is the free advertising and the positive relationship with the organization.

19. Deposits & Joint Fundraising
PTA funds should always only be deposited in the PTA account, never into a personal account or the school account.
All money deposited into a PTA account is considered PTA funds and the IRS will view it as such.
A PTA should NEVER deposit school money in its account.
if a pta sponsors a project or program in cooperation with the school, all funds should be accounted for and separated prior to the immediate deposit of the PTA portion into the pta bank account.
Your PTA is a separate legal entity and not a school organization. It is imperative that this distinction is clear. PTAs do not share their EIN numbers, their tax exemption or their banking details with schools, principals or schools districts.
IRS rules do not prohibit 501(c)(3) organizations from making donations to other 501(c)(3) organizations.
Funds should never be run through PTA accounts that are not, nor are never meant to be, PTA funds.
This applies to funds that belong to other organizations, the school and money being held for school or other organizations (i.e., school chorus, drama club, etc.), no matter how worthy the cause. Simply stated, PTAs should not raise or hold money for other organizations. PTAs raise money for their
PTA programs and work. Raising money for other organizations or groups is the other group's
responsibility in accordance with their own mission or purpose. What PTAs might do is raise awareness
about the needs of other organizations, preferably those with a common focus or mission to PTA. A unit
can share information about other organization's fundraisers and can encourage members to volunteer at their events, albeit not to the detriment of the PTA and its ability to find volunteers and financial support.
A PTA, through a Community Outreach line item in its budget and to a reasonable extent, can secure
supplies for another organization. A PTA also can help in other non-monetary ways such as conducting a
coat and mitten drive for a nearby Children's Shelter or buying supplies for a PTA group to serve dinner
at a local soup kitchen.

20. Raffles & Bingo
• RAFFLES & BINGO Georgia law (OCGA Section ) allows certain nonprofit, tax-exempt organizations to operate raffles. PTAs interested in conducting a raffle must check with the local school administration to ensure such an activity does not violate any existing policies or rules. The PTA must apply for a license with the sheriff of the county in which the PTA is located, as well as verify if there is a limit on the number of raffles that each organization can operate annually.
• Recreational Bingo (Free Bingo) – No license required. These are bingo games for which your PTA does not charge participants to play and does not award cash prizes or prizes worth more than $15 per game. Also, the non-cash prizes cannot be exchanged or redeemed for money. Recreational bingo games are not considered gambling under Georgia law, so your PTA may hold them as often as you like. Other types of bingo are considered gambling and therefore require a permit or license from the Georgia Bureau of Investigation.
• Annual Bingo Fundraiser – This is a special exception for nonprofit school organizations, and PTAs are included under this exemption. The GBI will issue a one-time permit for one bingo session during the calendar year free of charge. Keep in mind that only one permit will be issued per school or PTA; not to both during the same calendar year. Your PTA must apply for the permit by letter on school letterhead signed by the principal and PTA president. The permit must be posted in the location where you hold the bingo.
Please note: The permit will only be issued once between January 1 and December 31, which obviously overlaps two school years. Plan ahead!
• RAFFLES & BINGO Georgia law (OCGA Section ) allows certain nonprofit, tax-exempt organizations to operate raffles. PTAs interested in conducting a raffle must check with the local school administration to ensure such an activity does not violate any existing policies or rules. The PTA must apply for a license with the sheriff of the county in which the PTA is located, as well as verify if there is a limit on the number of raffles that each organization can operate annually.
• Recreational Bingo (Free Bingo) – No license required. These are bingo games for which your PTA does not charge participants to play and does not award cash prizes or prizes worth more than $15 per game. Also, the non-cash prizes cannot be exchanged or redeemed for money. Recreational bingo games are not considered gambling under Georgia law, so your PTA may hold them as often as you like. Other types of bingo are considered gambling and therefore require a permit or license from the Georgia Bureau of Investigation.
• Annual Bingo Fundraiser – This is a special exception for nonprofit school organizations, and PTAs are included under this exemption. The GBI will issue a one-time permit for one bingo session during the calendar year free of charge. Keep in mind that only one permit will be issued per school or PTA; not to both during the same calendar year. Your PTA must apply for the permit by letter on school letterhead signed by the principal and PTA president. The permit must be posted in the location where you hold the bingo.
The GBI will send you instructions along with your one-time permit. Allow at least two weeks to receive the permit. Terry Sosebee, GBI - Bingo Unit 3121 Panthersville Rd. Decatur, GA phone fax Please note: The permit will only be issued once between January 1 and December 31, which obviously overlaps two school years. Plan ahead!

21. Sales Tax & Fundraising
Use the 3:1 rule for fundraising.
For every one fundraising endeavor, there should be at least three projects aimed at helping parents or children that are non-fundraising.
If buying for resale, tax exempt
If buying to use, need to pay sales tax

22. IRS 990
Since 2006 all Not For Profits, regardless of income, required to file a Form 990.
It is due 5 ½ months after the tax year end.
Failure to file for three years, automatic
revocation of tax exempt status.
• 990 N – Electronic Postcard
– Receipts less than $50,000
• 990 EZ
– Receipts less than $500,000 and assets
less than $1.25 million
According to the local unit PTA bylaws, the active or current treasurer is required to prepare IRS forms. These forms are generally due five months and 15 days after the end of your fiscal year. Check your bylaws for the exact dates of your fiscal year.
Super simple – 5 minutes to complete. Don’t need to know exact receipts or net income.
IRS Form 990 N
Completing the e-Postcard requires the seven
items listed below:
1. Employer identification number (EIN)
2. Fiscal year
3. Legal name and mailing address
4. Any other names the organization uses
5. Name and address of a principal officer
6. Web site address if the organization has one
7. Confirmation that the organization’s annual
gross receipts are normally $25,000 or less

23. The PTA Audit
The Board of Directors selects an auditor or audit committee no later than two weeks prior to the end of the school year.
The treasurer supplies the auditor with the financial records as detailed on the PTA Audit/Financial Review Form.
Completed audit must be sent to Georgia PTA by September 30.
Auditing involves following financial transactions through the records to be sure that receipts have been properly accounted for and expenditures made as authorized in the budget, as approved by the general membership, and in conformity with PTA bylaws and standing rules. The audit must review all accounts of the PTA.
Who May Conduct the Audit?
The board of directors selects an auditor or auditing committee of one or more no later than two weeks prior to the end of the school year. Individuals who are selected to serve on the audit committee should have an accounting or financial background and an unbiased, independent perspective of the books. An auditor or auditing committee member shall not be related to any signee on the checking account by marriage or any other relationship. (Bylaws: Article VII: The PTA Audit: Section 4.) The PTA president,
treasurer or any signee may not be a member of the audit committee.
When Is an Audit Performed?
• On an annual basis at the end of each school year
Upon resignation of the treasurer during the school year
When missing funds are suspected
any time it is deemed necessary

24. Items Needed for Audit Copy of last audit report
Checkbook and cancelled checks
Bank statements & Deposit Slips
Treasurer’s book or ledger of transactions
Approved Budget with any amendments
Itemized statements and receipts of bills paid
Cash Verification Forms
Check Request Forms (Receipts attached)
Copies of executive, board, and association minutes
Copies of all Treasurer Reports
Current Bylaws
Annual financial report
Irregularities
• Auditor may find:
– Missing Funds
– Poor Accounting
– Checks with only ONE signature
– Bills paid by debit card or credit card
– Checks signed by unauthorized signatures
– Reimbursements not done in timely manner
Use findings as opportunity to improve financial procedures
Missing Funds
• Findings must be reported to Board of Directors (not just Executive Committee)
• Board must act on the report
• Board must report its actions to the membership

25. Defining Theft, Fraud, and Embezzlement
Theft: The action or crime of stealing
Fraud: Wrongful or criminal deception intended to result in financial or personal gain
Embezzlement: Steal or misappropriate money placed in one’s trust or under one’s control
For fraud to occur, only four things are needed: Incentive, Opportunity, Rationalization and Capability. This is called the Fraud Diamond.

26. Theft hurts PTA’s cause for children
Impact of Fraud
Theft hurts PTA’s cause for children
Damaged reputation and relationships
Loss of members
Loss of grants

27. Many corrections to the ledgers Lifestyle changes
Warning Signs of Theft
Delayed reports
Cash receipts
Many corrections to the ledgers
Lifestyle changes
Missing money on Friday, replaced Monday
Signatories are related
Checks made out to “Cash”
Large checks, pre-signed checks, or bouncing checks
Not following internal controls
Avoid/delay annual audit

28. Common Reasons Theft is Not Reported
Negative publicity
Concern for safety if the offender makes threats
Legal action by the offender
To avoid embarrassing the offender and/or the offender’s children/family

29. Downside of Not Reporting Theft
Sets precedent for additional thefts
Creates an environment that encourages theft
Loss of credibility and respect for your PTA among members, the community, partners, and donors

30. What to do if you suspect theft
•DO NOT make accusations! (libel, slander)
•Determine suspect’s access to other PTA resources
•Gather facts, documents, and interviews.
•Identify all accounts involved and consider freezing or closing them
•Contact the authorities
•Contact the insurance company
Contact your council, district or state pta for help!
Notifying the police is hard and I know its hard. This is one of the biggest concerns I’ve had from local units over the past year. They don’t want to ruin someone’s life, they’ve had a bad year, or however the bod attempts to justify it. Bottom line, someone stole money. Do you want to be a local unit that encourages theft? No – you have a responsibility to your membership to protect their assets.

31. What does a fidelity bond policy cover?
Insurance
What does a fidelity bond policy cover?
Protects the cash of the PTA unit against theft, fraud and embezzlement
Who should be covered under this policy?
Anyone in your PTA who has access to or handles money (e.g. Treasurer, President, Fundraising chair)
Georgia PTA strongly encourages units to obtain adequate insurance protection against liability and financial loss due to fraud, embezzlement or dishonest acts. Operating a PTA unit is much like running a small business. Businesses need insurance to protect their investments; the same is true for PTA units.

32. Insurance
GENERAL LIABILITY: Protects all members in case they are held legally liable for bodily injury or property damage to another person that resulted from a covered event.
DIRECTORS & OFFICERS LIABILITY: Covers protection if an officer or member of PTA is sued for not living up to the responsibilities and duties assumed as a member of PTA.
PROPERTY: Covers property owned by the PTA - Laptop, merchandise for fundraiser, Fall Festival Booths, etc.
ACCIDENT MEDICAL: Provides medical payment for injuries sustained at a PTA event.
Having insurance protection makes good business sense, especially when the cost is relatively small for the peace of mind of knowing you are protected.

33. Final tips! Make sure your PTA insurance is up to date
Contracts should be signed by the president and another officer
PTAs cannot obligate future boards to a contract or particular expenditure
Only PTA membership may decide on how funds are spent
There is no hard and fast rule about carry over
Keep all financial records for 7 years
In general, your financial records need to be kept for 7 years – some permanently. If you don’t have storage space at school, your unit may want to consider renting a storage facility. Otherwise the records just get passed from treasurer to treasurer.

34. Leadership Resource Guide
A must have for every Treasurer!
Print pages of the Leadership Resource Guide.
Also go to and review the Fundraising section of that website.