Training for PTA
Treasurers
North Carolina PTA
3501 Glenwood Avenue
Raleigh, NC 27612
(800)-255-0417
revised January 2011
PTA Vision
• Making every child's potential a reality
PTA Mission
PTA is
• A powerful voice for all children
• A relevant resource for families and
communities, and
• A strong advocate for the education and
well-being of every child.
PTA Treasurer’s “Mission”
• Its all about the children
– The money ‘belongs’ to the children
• Ensure money is spent to support the PTA
mission
– IRS regulation to remain a non-profit corp.
Keep these two rules in mind throughout
the year and you will be successful.
Before taking office
Be sure that the books have been audited before
accepting them. Submit your PTA’s Financial
Review online by August 31st of each year to
remain a PTA in “Good Standing”.
Become familiar with duties outlined in the bylaws.
Secure the signatures of new officers authorized to
sign checks and file with your bank.
Secure Bonding and Liability Insurance.
Study National PTA’s Money Matters Handbook and
the Finance section of the NCPTA website.
The Uniform Local unit Bylaws define the
duties of the Treasurer as follows:
Section 6.10 Treasurer. The Treasurer shall:
• Collect, deposit and maintain all funds of this local PTA in
approved depositories (including, but not limited to, all monies
collected as local dues, raised in PTA activities, received as
contributions, or otherwise acquired);
• Disburse funds in accordance with the annual budget adopted
by this local PTA, and maintain records identifying the purpose
and payee of all disbursements;
• Maintain a current record of income, expenditures, assets and
liabilities of this local PTA, and make all financial records
available for inspection and review by the audit committee;
• Present a financial report of income and expenses at each
meeting of the general membership and the board of directors,
which report shall compare current income and expenditures
to the approved budget;
• Remit dues to NCPTA in accordance with Article 5 of these
bylaws and the current NCPTA good standing requirements;
• Prepare a year-end financial report by June 30 showing the
total income and expenditures for the fiscal year, comparing
those figures with the budget approved at the beginning of
the fiscal year, and the assets and liabilities of the local PTA,
and submit that report to the incoming president, treasurer
and audit committee;
• File all required tax forms and reports in a timely manner,
including but not limited to tax returns for the previous fiscal
year, and submit copies of all such filings to the secretary of
this local PTA;
• At the end of his/her term, transfer all financial records to the
audit committee by July 1; and
• Provide assistance to the audit committee upon request.
The Audit Committee
Define in the bylaws as follows:
Section 8.2 Audit Committee.
• The audit committee shall be composed of no
fewer than three members. Individuals with
check signing authority and their family
members may not serve on the audit
committee, nor may the outgoing or incoming
treasurer.
• The audit committee shall be responsible for
the audits and financial reviews described in
Article 11 of these bylaws.
ARTICLE 11 FINANCE AND BUDGET
• Section 11.1 Monthly financial review. The audit
committee will conduct a monthly review of this local
PTA’s bank statements and supporting documents and
shall sign an acknowledgment on the bank statements
that the expenditures were consistent with the approved
budget.
• Section 11.2 Financial review when financial
officer leaves office. If any officer with financial
responsibility, including but not limited to check signing
authorization, leaves office before the end of a fiscal
year, the audit committee will conduct a review of the
local PTA’s financial records.
•
•
Section 11.3 Annual financial review. By August 31 each
year, the audit committee, or a certified public accountant appointed
by the board shall:
Examine the treasurer’s year-end financial report and this local
PTA’s financial records (including but not limited to all depository
accounts, the general ledger of receipts and expenditures,
supporting documentation and checks, and records of membership
dues paid); and
State in writing whether or not the treasurer’s year-end report is
correct and shall submit that statement, with a copy of the report, to
the board of directors.
The board shall review and approve the report of the audit
committee or certified public accountant, and thereafter the audit
committee shall use the data in the report to prepare and file the
required Local PTA Year-End Report online in the NCPTA database no
later than August 31. The audit committee will summarize its report
to the general membership at its next meeting. The audit
committee, at any time, may recommend to the board that an
independent review of the financial records by a certified public
accountant should be conducted.
•
Section 11.4 Annual budget. The officers shall prepare a proposed
annual budget which, following approval by the board, shall be considered
and adopted at the first general membership meeting of the fiscal year.
Amendments to the budget may be considered and adopted at regular or
special general membership meetings.
•
Section 11.5 Checks. All bills of this local PTA shall be paid by check.
Checks must be signed by two of no more than four officers authorized by
the board of directors to sign checks, except that none of these officers so
authorized shall be related, and at least one of these authorized officers shall
be the Treasurer. The signing of blank checks is prohibited.
•
Section 11.6 Expenditures and fund availability. All expenditures of
this local PTA must be consistent with the approved budget and based on
actual fund availability. All reimbursements for expenditures will be
contingent upon actual fund availability.
•
Section 11.7 Depositories. All depositories of local PTA funds, including
checking, savings and investment accounts, must be approved by the board
of directors.
•
Section 11.8 Contracts and other financial agreements. All
contracts and other financial agreements require the prior approval of the
board and must be signed by the President.
Insurance
Fidelity bonding insurance
Protects the PTA’s money from theft. The Treasurer and
other officers are covered if:
1) An annual audit has been conducted and
2) Checks are signed by two persons
General liability insurance
Covers all routine activities of your PTA e.g. general
meetings, spring festivals, skating parties, etc.
Covers bodily injury, property damage, hazards,
libel/slander.
Many School Systems require proof of insurance to use
facilities.
Incorporation
Protects individual officers of the PTA financially
from any personal liability in the event the
PTA is sued or cannot pay its bills.
Incorporation forms for nonprofit associations
are available from the NCPTA state office or:
NC Secretary of State
PO Box 29622
Raleigh NC 27626-0622
919-807-2225
http://www.sosnc.com/
Search for Your PTA
• http://www.secretary.state.nc.us/corporations/
CSearch.aspx
Treasurer’s Records
Ledger
A copy of the Budget
Bank statements and cancelled
checks
Receipts & Vouchers
Other important papers:
Checkbook
Meeting Minutes
Although the treasurer keeps the books,
the financial records belong to the
organization.
Must turn everything over to the audit
committee when your term is complete
because they belong to the PTA.
A copy of bylaws
Copies of Form 990 (IRS)
Employer Identification Number
State Tax information
10 years of Audits
7 years of unit financial activity
3 years of budgets
Ledger – Manual
Cash In
Deposits
Cash Out
Petty Cash
Checks
Funds entered by category
Ledger – Electronic
Can use Microsoft Money, Quicken,
Spreadsheets, etc.
Always keep a backup
Always keep a printed copy
Automatically prepare budget reports
Electronic Banking
• Caution when using electronic banking to
pay bills
• Establish a policy and consequences
• Do not use Credit Cards, Debit Cards or
Other Banking Cards
1. Too difficult to track two signatures
2. Too easy to empty an entire account
Budget
• Bylaws - Section 11.4 Annual
budget. The officers shall prepare a
proposed annual budget which, following
approval by the board, shall be
considered and adopted at the first
general membership meeting of the fiscal
year. Amendments to the budget may
be considered and adopted at regular or
special general membership meetings.
Budget Planning
PTA President, the Board of Directors and
Principal should work together over the
summer and agree on a plan for the
coming year.
• PTAs set their own agenda
• PTAs goals should be complimentary with
the school’s.
Remember, it’s all about the children
Budget
Normally presented by Treasurer to the Board of
Directors
 Based on the PTA mission & vision
 Based on goals of the unit
 Based on historic financial information (i.e. prior years
budgets)
Only official after it is approved by the general PTA
membership
 Usually done during the first PTA meeting (quorum having
been established).
 Consider publishing in your newsletter
 Consider posting on the school website
 Review & hand out at every General Membership Meeting
 Can’t write checks against the budget until it’s official
Budget (cont’d)
A tool to monitor the financial
activities of the PTA
throughout the year based on
the unit’s goals.
General membership must
approve a budget or budget
amendments.
The fiscal year begins on July 1
and ends June 30.
Please remember, a 501( c ) 3
organization cannot
obligate any future boards
to a contract.
PTA’s must spend money on
their Mission.
Remember, it’s all about the
children.
Guilford County Council of PTAs
Budget 2002-2003
Beginning Cash Balance
Income
Adjustment from prior years(1)
Banquet
Council Meals (7)
Donation
Planning Grant
SPICE Grant (2)
Tax Refund
Training Receipts(7)
Unit Dues
Total Income
Expense
Advocacy
Awards
Bank Charges
Banquet Expenses
Environmental Issues
Council Meals (7)
Cultural Arts
Education
Exceptional Children
Grant Expense(3, 7)
Health & Safety
Hospitality
Human Relations
Leadership & Programs (7)
Membership
Misc
National Convention(4)
Networking(5)
Newsletter
Operating Expenses
Public Relations
Reflections
Sales Tax
SPICE Grant Distribution
State Conference
State & National PTA Convention(6)
Volunteers
Minimum Carry-Over 02-03
Total Expenses
Net Fund Balance increase(decrease)
Ending Balance
02-03 Budgeted Actual 01-02
$8,856.57
$6,019.64
$14,000.00
$3,150.00
$60.61
$12,208.00
$2,112.00
$1.00
$5,000.00
$30,000.00
$1,824.53
April
$8,856.57
March
$8,856.57
$8,470.00
$3,367.00
$3,367.00
$30,000.00
$1,824.53
$894.00
$3,280.00
$
$
$3,800.00
$3,640.00
$30,000.00
$1,824.53
$894.00
$3,280.00
$52,774.53
$23,021.61
$47,835.53
$39,365.53
$1,955.15
$63.90
$3,340.59
$63.90
$3,340.59
$490.00
$3,096.03
$2,738.03
$600.88
$445.51
$445.51
$55.00
($200.00)
$28.09
$55.00
($200.00)
$28.09
$800.93
$656.62
$656.62
$393.30
$849.25
$524.97
$207.11
$30,000.00
$497.97
$207.11
$30,000.00
$149.00
$149.00
$20,184.68
$2,836.93
$38,366.82
$9,468.71
$37,981.82
$1,383.71
$
$8,856.57
$18,325.28
$10,240.28
$
$50.00
$1,400.00
$50.00
$14,050.00
$50.00
$3,150.00
$50.00
$50.00
$50.00
$4,510.00
$50.00
$150.00
$50.00
$600.00
$50.00
$250.00
$1,351.25
$6.00
$12,268.00
$1,371.92
$150.00
$125.00
$800.00
$50.00
$600.00
$900.00
$30,000.00
$
$98.00
$1,250.00
$50.00
$2,000.00
$60,485.00
($7,710.47)
$1,146.10
1) un-redeamed funds from prior year
2) Anticipated Grant distribution funds
3) Grant funds from Commity Foundation of Greater Greensboro for leadership development
4) includes $200 to be refunded from Northwest Middle School
5) To be split equally between Elementary, Middle and High Schools. Budget Report for Dec mistakenly put this in New
6) State and National Convention budget combined. National Convention in Charlotte this year
7) Food collected for fall training were previously listed under training rcpts. Now moved to Council Meals.
Expenses for fall training food and tables moved from Spice Grant to Council Meal cost and Leadership respectively
Voucher System
Local School PTA
Check Request Form
Used for reimbursement
Used for check request
Important part of paper
trail
Date
Name of Committee
Person Requesting Check
For what purpose
Amount $
Any receipts or other
documentation should
be attached to the
voucher.
To whom should the check be paid?
Address
Authorized by (President/VP Signature)
Budget Category
Check Number
Date written
Receipt
• Receipt all transactions.
Membership money
Fundraisers
Donations
Petty cash
• Two people should always count the money.
• Never deposit PTA funds in a personal account or a
school account.
School funds are public monies and PTA funds are private
monies.
• Never “pass” school money through a PTA account.
This adds to your gross receipts and could have filing
consequences with the IRS.
Money & Checks
Bylaws - Section 11.5 Checks. All bills of this local
PTA shall be paid by check. Checks must be signed by
two of no more than four officers authorized by the
board of directors to sign checks, except that none of
these officers so authorized shall be related, and at least
one of these authorized officers shall be the Treasurer.
The signing of blank checks is prohibited.
No school employee should have signature authority on
PTA checks unless they are a duly elected PTA officer.
The PTA can’t ‘give’ money to the school or any person
or organization without a specific use for the money.
The IRS and your members hold the PTA accountable
for the use of that money.
Payments
Pay all obligations by check (no cash)
Checks create a paper trail of all expenses that
can validate a transaction.
Don’t use Credit/Debit cards, Electronic
Payments.
Never sign a blank check.
Funds not spent in one budget year should be
held and included in the new budget.
No PTA Board has the authority to write checks to
the school or the principal or for unbudgeted
items to “clean out” the account.
Membership Income
The state and national portions of the dues do not belong
to the unit and are never recorded as part of local PTA
income. In accordance with the bylaws, this money
must be sent into the State PTA Office by the 15th of
each month and, therefore, is not a budgetary item.
These funds should be shown as receipts and
disbursements not belonging to the PTA on each
Financial Report.
To solicit memberships and then fail to forward
State and National dues is a fraudulent act.
NCPTA’s membership year begins July 1 and ends June
30.
Membership payments received after June 30th are credited
to the next membership year.
Contracts
Only the president is authorized to sign a contract after
approval by the Board of Directors and/or general
membership.
Contracts signed by anyone other than the president may
not be legally binding to the PTA. The signer may be
personally responsible.
If the unit is not incorporated, the contract signer
(including the president) can become financially
responsible if something goes wrong with a fundraising
project.
Board members should not receive payment for a product
or service for the PTA unless a Fair Market Value has
been established and recorded in the minutes.
Fund-Raising
The primary emphasis in PTA should be
focused upon the promotion of the Mission.
The real working capital of a PTA lies in its
members, not in its treasury. Fund-raising
is not a primary function of the PTA.
Children should never be exploited or used as
fund-raisers. K-6 students are not allowed
to solicit or sell door-to door in any fundraising activity.
Remember, It’s all about the Children
Fund-Raising (cont’d)
It is strongly recommended that the PTA only
hold the number of fundraisers needed to
meet their budget (and not vise/versa).
If the unit is not incorporated, the contract
signer can become financially responsible if
something goes wrong with a fundraising
project.
Fundraising income category should be kept
separate from fundraising expenses.
Bad Checks
If your PTA receives a bad check (NSF)
– Contact the person who wrote the check asking
that funds be made available
– Contact the bank the check is drawn against and
they can tell you if and when money is available.
– Consider going to the bank the check is drawn
against and getting a tellers check.
Taxes
Your PTA is a “consumer” when it purchases supplies or equipment that it will
use or give to the school. This includes items and equipment for which PTA
writes the check directly to the supplier: office supplies, award certificates
and trophies, computer hardware and software, and playground equipment.
The sales tax paid on these purchases may be refunded twice a year
from the NC Department of Revenue. File form E-585
Your PTA is a “merchant” when it purchases merchandise to sell in order to raise
funds. PTAs must have a Merchants License on file with the NC Department
of Revenue and present their vendor with a completed Certificate of
Exemption in order not to be charged sales tax on resalable merchandise.
PTAs cannot claim a refund for sales tax paid on resalable merchandise.
If your unit grosses more than $50,000 (new for 2010 tax year)
Must file IRS-990EZ or 990
Must also file form if the IRS sends the form even if you grossed less than
$50,000.
If your unit grosses less than $50,000 (new for 2010 tax year)
Must file Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations not
Required To File Form 990 or 990-EZ. Before this law was enacted, these small
organizations were not required to file annually with the IRS.
Required e-postcard information
• Organization’s name
• Any other names your organization uses
• Organization’s mailing address
• Organizations website address (if applicable)
• Organization’s EIN
• Name and address of a principal officer of your
organization
• Organization’s annual tax period
• A statement that your organization’s annual
gross receipts are still normally $50,000 or less
In closing...
• Please review NCPTA’s Finance section
on our website
• Visit www.ncpta.org frequently for
financial updates
• Contact the State Office at
office@ncpta.org if you need any
assistance.
And remember…
It’s All About the
Children
Questions and Discussion