Ohio PTA
Treasurer
Workshop
The PTA Mission
•To support and speak on behalf of children and
youth in the schools, in the community and
before
governmental
bodies
and
other
organizations that make decisions affecting
children; and
•To assist parents in developing the skills they
need to raise and protect their children; and
•To encourage parent and public involvement in
the public schools of this nation.
The Purposes of PTA
•To promote the welfare of children and youth in the
home, school, community, and place of workshop
•To raise the standards of home life
•To secure adequate laws for the care and protection of
children and youth
•To bring into closer relation the home and the school,
that parents and teachers may cooperate intelligently in
the education of children and youth
•To develop between educators and the general public
such united efforts as will secure for all children and
youth the highest advantages in physical, mental, social,
and spiritual education
Nowhere does it say
“Pay for…”
The PTA Treasurer:
•Is the authorized custodian, elected by the members,
to have charge of the funds of the PTA organization
•Receives and disburses all monies prescribed in the unit
bylaws
•Sees that all authorized bills are promptly paid
•Gives a financial accounting at regular intervals
(meetings)
•Must maintain accurate records
•Standard financial procedures must be used when
keeping records to insure audits can be properly
conducted
•Must be bonded
Before Taking Office
•Be sure the books have undergone a financial
review before accepting them
•Check all files and records received from the
retiring treasurer. Ask about any missing records
immediately.
•Become familiar with the duties of the treasurer
as outlined in the bylaws
•Secure the signatures of new officers authorized
to sign checks and file them with the bank
Before Taking Office
•Check on the bonding and liability insurance
•Study the Ohio PTA Legal and Financial
Management Handbook
•Read National PTA’s Money Matters Guide in
the Annual Resources for PTAs
Treasurer’s Duties
•Study carefully all references to dues
and finances in the bylaws and PTA
handbooks
•Keep an accurate and detailed
account, in a permanent book, of all
monies received and disbursed
•Receive all monies for all accounts –
always issue receipts
Treasurer’s Duties
•Submit a report at regular meetings of the association
including:
Total balance on hand at the beginning of the month
covered by the report
Separate amounts received and credited to the
general fund
The state and national portion of dues
Any special
endowments
funds
such
as
scholarships
or
Other receipts
Itemized disbursements
Balance on hand in each fund and total balance on
hand at the end of the month
Treasurer’s Duties
•Deposit all monies in approved accounts.
Never deposit association funds in the
personal account of the treasurer or in the
school activity account.
•Pay all bills by check – two signatures should
be required on all checks
•Keep the national and state dues separate
along with any other national and state monies
Treasurer’s Duties
•Forward Ohio and National portion of
membership dues to the Ohio PTA on a monthly
basis. Work with the membership chairman to
always include the proper forms
•Work with the membership chairman and
secretary to maintain an accurate listing of the
membership
•Preserve all check requests (vouchers),
receipts, bank statements, and canceled
checks and submit all of these to the auditor in
preparation for the audit
Treasurer’s Duties
•Deliver all records to your successor
•Maintain the permanent file of
canceled checks, paid bills, etc. for
seven years (see records retention
schedule)
Treasurer’s Written Report
•Should be given according to bylaws
requirements
•Should indicate what period of the fiscal
year the report covers
•The date it was prepared and by whom
•Should not be adopted but filed in the
treasurer’s file
(not filed for audit – just filed)
Treasurer’s Annual Report
•This report is for information only and
only becomes official after the audit has
been completed and the audit report
officially adopted at the first meeting of
the new school term
•A financial management checklist should
be filed with the annual financial reports
and the secretaries minutes after
adoption
Treasurer’s Annual Report
•At the close of the fiscal year, the
treasurer should prepare an annual report
covering the entire fiscal year
•The treasurer should make a preliminary
report to the general membership at the
annual meeting
•Bylaws should provide for the audit
The Principles of PTA Financial Management
•Properly approved budget
•Must be bonded
•All funds are administered by the treasurer
•Never sign a blank check
•Cash is never used
•Funds are deposited in authorized PTA bank accounts
•Keep PTA funds separate from school funds
The Principles of PTA Financial Management
•Keep PTA funds separate from school funds
•Issue receipts for money received
•Two/three people should count the money
and sign the receipt
•Complete and accurate record keeping
•Never record state or national dues as unit
income
•Audit of all financial records conducted
according to bylaws
Content’s of the Treasurer’s File
•A copy of the PTA bylaws and standing
rules with treasurer’s responsibilities
highlighted
•A copy of the budget as adopted by the
association
•Receipt book
•Checkbook
•Treasurer’s account book, ledger
copies of financial records on disc
or
Content’s of the Treasurer’s File
•Permanent IRS tax information:
IRS determination letter of tax-exempt
status
Employer Identification Number (EIN)
Copies of files form 990 or 990EZ
The Ohio PTA IRS Group Number (2394)
Additional IRS forms as needed
Content’s of the Treasurer’s File
•Permanent state sales tax information and
reports filed with the state
•Current membership roster
•Ohio PTA and National PTA financial resource
materials
•Ten years of audit reports/financial reviews
Content’s of the Treasurer’s File
•Seven years of cash receipts, bank
deposits, invoices and statements
•Three years of budgets
•Any general correspondence dealing
with financial matters
The Budget
- AN OUTLINE OF
ESTIMATED ANNUAL
INCOME AND EXPENSES.
The Budget
Developing the Budget
•The budget committee
 May be elected or appointed
(see your bylaws)
Usually consist of 3-5 members, one
of whom is the treasurer who also
acts as the chair
The Budget
•Effective budgets include consideration
of stated goals and planned activities as
well as the financial means to achieve
these goals
•Study the previous year’s budget and
annual report for information pertinent
to a new budget
•Ask chairmen
requests
to
submit
budget
The Budget
•Determine the projected financial
requirements
•Take into consideration the funds
needed for programs, projects and
leadership development (a legitimate
PTA expense)
•Budgets cover only a one-year period
of time
Approving the Budget
•After the budget has been drafted, it should
Be presented to the PTA executive
committee/board for consideration; then
Presented to the PTA membership,
item-by-item, for approval
•The budget is presented at a general meeting
where a quorum is determined to be present. A
majority vote of the members present and
voting is required for adoption.
Amending the Budget
•The budget is only an estimate of planned
expenditures for the year so may need amending
periodically
•The budget may be amended at any regular
meeting of the association or special meeting
called for that purpose
•To amend something previously adopted takes a
2/3 vote or with previous notice – a majority vote
Approval of Expenditures
•The adoption of the budget authorizes the
treasurer to pay for routine expenses
covered in the budget, according to the local
PTA bylaws
•All expenditures must be reported to the
executive committee/board and included in
the regular report of the treasurer to the
membership
•Additional expenditures not provided for in
the budget must be approved by the
membership
Approval of Expenditures
•The regular financial report should be
attached to the minutes of the meeting at
which it is presented
•Changes in the budget, including income
and expenditures, must be presented as
amendments to the budget
Banking
Bank Accounts
•All PTAs are required to provide the bank
with an IRS Employer Identification Number
•EIN’s are acquired through the Ohio PTA
office
•Do not use the school’s tax exempt number
Savings Accounts
•Savings accounts are usually kept for the following
purposes:
•Efficient management of funds (interest)
•Reserve funds to carry on programs during summer
months and Fall until dues are collected
•Monies to finance unexpected but approved programs
or projects
•As a guide, this reserve fund should not exceed one-half
of the PTA’s budget for an average year. If it does, the
indication is that the PTA is not giving as much service to
children as it should.
Bonding Insurance
•The treasurer and all other individuals
authorized to handle funds should be
covered by a fidelity bond in the amount
determined by the executive committee
•A fidelity bond covers losses sustained by a
PTA through fraudulent or dishonest acts
committed by any employees or noncompensated elected officers to handle
monies acting alone or in conspiracy with
others.
Bonding Insurance
•A blanket bond covers all members handling
funds with the amount of coverage applying
separately to each member
•A commercial blanket bond covers all members
handling funds with the amount of coverage for
any one loss regardless of the number of
members involved
•A position schedule bond covers the positions
listed and does not mention any individual by
name
•The amount of coverage should be determined
by taking the average of the association’s gross
receipts for the last three years
Liability Insurance
PTAs should consider their need for
liability insurance when there are
projects or activities that may result in
potential hazards for PTA members,
students or other third parties.
Liability Insurance
•Commercial general liability insurance provides
coverage for your legal liability arising from
bodily injury, personal injury, advertising injury
and property damage to others arising out of your
activities
•Do not assume that your school district liability
insurance extends to PTAs or their activities
Membership Dues
•Work with the membership chairman to
forward the state and national portions of
the dues to the Ohio PTA office along with
the proper paperwork
•The state and national portion of dues do
not belong to the local PTA unit and are never
recorded as part of the local PTA income but
should be recorded as accounts payable
within your financial records
•Dues should be submitted on a monthly basis
•Bylaws state the amount of the annual per
capita dues for membership in the association
Fundraising Receipts and Expenditures
•Deposit the monies from a large fund-raiser as
soon after the conclusion of the project as
possible
•The chair of the activity is responsible for seeing
that the treasurer receives the monies in a timely
manner
•At least two persons should count the money and
sign a statement verifying the amount
•A receipt should be given to the chair for the
entire amount
Fundraising Receipts and Expenditures
•Never deposit PTA funds in anyone’s personal
bank account
•The treasurer should be given itemized bills,
sales slips, etc. from the fund-raising activity to
pay by check
•A detailed report should be written for every
fund-raising activity
Check Requests (vouchers)
•A check request voucher should include the following
information:
•Date
•Check number issued
•Amount to be paid
•Budget line item(s)
•With a signature of the president authorizing payment
•Receipts must be attached to a voucher before payment is
made by the treasurer
•These records are available to the audit committee
PTA Funds vs. Public Monies
•PTA funds should not be deposited in any
account other than the PTA account
•All monies deposited will be considered PTA
funds by the IRS
•A PTA should never deposit school funds in its
account
•If the 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
Financial Review
The Purpose of a Financial Review
•To certify the accuracy of the books
and records of the financial officer;
and
•To assure the membership that the
association’s funds are being managed
in a businesslike manner within the
regulations established for their use
Preparation for Financial Review
The treasurer shall deliver the
following materials to the auditors:
•A copy of the last financial review report
•Checkbook and canceled checks
•Bank statements and deposit receipts
•Treasurer’s ledger
•The annual financial report
Preparation for Financial Review
•Itemized statements and receipts of bills paid
•Check requests (vouchers)
•Copies of board, executive committee, and
organization minutes including the adopted
budget and subsequent amendments
•Current bylaws and standing rules
•Any other
auditors
information
requested
by
the
Financial Review Procedures
•Start the review with the records posted after the last
audit. Make sure the amount shown on the bank statement
corresponds to the starting balance in the checkbook and
ledger.
•Reconcile each month’s bank statements with the
canceled checks.
•Make sure each check written is substantiated with a
voucher or bill for disbursement.
•Verify that all income and expenditures are allocated into
the appropriate categories.
•Make sure the state and national portions of membership
dues have been kept separate from other receipts and
have been forwarded regularly to the Ohio PTA office.
Financial Review Procedures
•Make sure that money collected for a specific
purpose has been so disbursed (scholarships,
council dues, etc.)
•Reconcile each deposit
statements and checkbook.
slip
with
bank
•Check all cash receipt slips issued and verify
proper entry in the ledger.
•Check the ledger entries for error and crosscheck against checks issued and receipts posted.
Cross-reference checkbook stubs with checks
issued.
Financial Review Procedures
•If a check was written and no voucher is
present, check to see if it was an approved
budgeted item such as council dues.
•Check treasurer’s reports and annual report for
accuracy.
•After corrections have been made, draw a line
across the ledger where the audit concludes and
sign and date the ledger using a different color
ink.
“Examined and found correct” <<name>>
<<date>>
Financial Review Procedures
•If all is in order, prepare a statement and have each
member of the committee sign it. “The financial review
committee has examined the records of the _________ PTA
for the period of (time covered) and found them to be
correct. Balance on hand $_______.” <<signatures of
committee>>
•A report must be submitted by the financial review
committee in the event there are not sufficient records
available to conduct a proper audit.
•The financial review report must be officially adopted by
the association and must be included in the annual report.
•If the validity of the financial report is questioned, an
independent certified public accountant should be engaged.
ditures
Upon Leaving Office
•Be sure that all state and national dues
have been collected and forwarded to the
Ohio PTA office
•Balance the books for the financial
review
•Make sure PTAs books agree with the
bank balance and outstanding checks
•Prepare the annual report
Upon Leaving Office
•Submit IRS Form 990 or Form 990EZ
•Prepare other
government
reports
required
by
the
•Arrange for the transfer of all records,
reports, and files to the incoming treasurer
•Obtain and file new signature cards with the
bank
•Send a copy of the annual report to the Ohio
PTA office
Contact Us
Ohio PTA
1-800-699-6628
office@ohiopta.org
www.ohiopta.org
2012