1. Introduction to PTA Money Matters

2. The PTA 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 report

3. Name of PTA Fiscal year covered Opening balance Gross receipts (+) Expenditures (-) Ending balance Reconciliation to final bank statement Certification of audit committee PTA Audit Report

4. The budget should reflect the goals and purposes of the PTA; Anticipated income and expenditures should be equal; Categorical expenses are broken down; Fundraising is for PTA purposes only; and Approval and amendment is by membership only. The PTA Budget

5. Develop a system that follows business- like practices; Keep records up to date; Bank statements should be mailed to the president for review before being given to the treasurer for reconciliation; and When in doubt, ASK! The PTA Accounting System

6. Use a voucher system for income Use a voucher system for disbursements Know the difference between a ledger and a check register PTA Accounting System (cont.)

7. Treasurer’s Report – Report to the membership on a regular basis; – Reports should be based on a calendar month; – Report to the membership based on adopted budget line items, not payees; and – File the monthly reports for audit—no action is taken at the time the report is given.

8. The PTA Reporting System Accountability to the membership – Create an annual report that summarizes the monthly financial reports; – Remember, PTA is a private non-profit entity and is prohibited from co-mingling funds with public entities (schools).

9. PTA Reporting System (cont.) Accountability to the Government – Federal – IRS requires reporting by all 501 (c) (3) organizations Accountability to the Government – State – Illinois Charitable Trust – Illinois Department of Revenue – Illinois Attorney General – Illinois Secretary of State

10. PTA Pitfalls & Ethical Dilemmas 10. No policy on insurance; 9. No policy on collecting funds, counting money or depositing funds; 8. No policy on fundraising; 7. No policy on returned checks; 6. No policy on signatories; 5. No policy on using a deposit and/or expense voucher system; 4. No policy on issuing blank checks; 3. Incomplete audits; 2. Failure to files appropriate IRS forms; and 1. Use of PTA funds for non- PTA activities.