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?DUTIES OF THE TREASURERHave a discussion of the duties listed in the course book.
3 501 (c) (3) Organization PTAs are separate entities from schools PTA Mission Statement in relation to tax-exempt statusProtecting tax-exempt status501 (c) (3) Organization
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 OrganizationAvailable online at:Also see IRS Stay ExemptPROTECTING PTA’s TAX – EXEMPT STATUS
5 “Federal Employer Identification Number” or “Federal Tax ID” required under the rules for 501 (c) (3) tax-exempt organization(Do not confuse this number with the sales-tax exempt number providedto you annually in the local unit packet )Obtained from IRS when the PTA is organizedNotify Illinois PTA office of your FEIN immediately upon receiptEIN FEIN TAX ID Number
6 AUDIT First step in building a budget; Purpose: to certify accuracy of PTA’s financial records;Audit committee make-up and procedure in bylaws/standing rules;Procedure: time frame, reporting to members, adoption of reportAUDIT
7 AUDIT REPORT Name of PTA Fiscal year covered Opening balance Gross receipts (+)Expenditures (-)Ending balanceReconciliation to final bank statementCertification of audit committeeSee sample Audit Report in the course book AppendixAUDIT REPORT
8 Documents needed for Audit Committee Check book and check registerBank 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)Documents needed for Audit Committee
9 Ledger and receipt book Expense vouchers and invoices/receipts for all disbursementsTreasurer's record of membershipFinancial reports and any other documents relating to PTA financesCopies 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 appendixBUDGET
11 PTA funds should be budgeted for purposes that advance PTA work. Funds should be raised within the context of the mission ons purposes of the PTAFollow 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 $4.25 per member: $2.00 to Illinois PTA $2.25 to National PTATreasurer and Membership Chairman work together to make sure number of members and dues collected agreeMembership Chairman should keep a current list of all membersFirst dues payment is due to Illinois PTA State Office postmarked no later than October 1 of each yearDUES
14 Recent information from 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 Ledger – records income and expenses to the appropriate line item in the adopted budget Check Register – a general listing of receipts and expenditures in date orderMANAGING MONEY
16 Managing Money continued Expense Voucher – to accompany disbursementDeposit Voucher – to accompany any money collectedCounting Money – at least two people should verify cash receivedManaging Money continued
17 PTAs should keep funds in their own bank account; never deposit funds into school or school district accounts or personal accountsTwo people should sign checksNever sign blank checksNever keep cash from PTA events at home for extended periods of time; deposit cash immediately after eventBank statementsBANK ACCOUNTSHave additional discussion of bank statements as needed.
18 INTEREST BEARING ACCOUNTS Making your money work for you is fiscally responsible!Reserves for a long-range project?All interest should be reported to IRSINTEREST BEARING ACCOUNTSDiscuss PTAs who have reserves
19 ELECTRONIC BANKING ATMs What is Electronic Banking and EFT?(Electronic Funds Transfer)?Refers to the movement of funds from one bank account to anotherHas become significant factor in today’s worldMust enter into agreement with a financial institution to use EFTExamples of EFT in Operation including ATMsGeneral Electronic Banking ControlsSecure passwordsELECTRONIC BANKING ATMs
20 CREDIT CARDS Accepting credit card payments PTAs are discouraged from using credit cards for purchases
21 FOR More Information…Check out additional resources on these issues listed in your course bookMake note of the resources listed
22 TREASURER’S FINANCIAL REPORT Given at each meeting of PTA – executive board and general membershipInclude opening balance, receipts and disbursements for a specific period of time, and a closing balance.See sample Treasurer’s Reports in your course book AppendixTREASURER’S FINANCIAL REPORT
23 GOVERNMENTAL REPORTING Federal 990 as required by your PTA’s gross receiptsForm 1099 – Misc. – Statement for Recipients of Miscellaneous IncomeIf requiredAnnual Report to Secretary of State required for all non-profit corporationsAG 990-IL – required for non-profit organizations with net income in excess of $50,000GOVERNMENTAL REPORTINGHave discussion of details of each report.
24 Provides additional liability protection for individual PTA members. Complete Form NFP-102 atRegistered agentRecord Certificate of IncorporationAnnual ReportAmend bylaws as directedINCORPORATION
25 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.INSURANCE
26 USEFUL TOOLS Legal document file Volunteer hours record Reminders Records Retention ScheduleUSEFUL TOOLS
27 Check out the course book Appendix Questions? Illinois PTAP.O. Box 907Springfield, IL