MONEY MATTERS
101
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?
501 (c) (3)
Organization
• PTAs are separate entities
from schools
• PTA Mission Statement in
relation to tax-exempt status
• Protecting tax-exempt status
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 Organization
Available online at:
www.irs.gov/pub/irs-pdf/p557.pdf
• Also see IRS Stay Exempt
www.stayexempt.irs.gov
EIN
FEIN
TAX ID
Number
• “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 provided
to you annually in the local unit packet )
• Obtained from IRS when the PTA is
organized
• Notify Illinois PTA office of your
FEIN immediately upon receipt
• First step in building a budget;
AUDIT
• 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
AUDIT
REPORT
•
•
•
•
•
•
•
Name of PTA
Fiscal year covered
Opening balance
Gross receipts (+)
Expenditures (-)
Ending balance
Reconciliation to final bank
statement
• Certification of audit committee
See sample Audit Report in the course book
Appendix
• Check book and check register
Documents
needed
for
Audit
Committee
• Bank 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)
• Ledger and receipt book
• Expense vouchers and invoices/receipts for all
disbursements
• Treasurer's record of membership
• Financial reports and any other documents
relating to PTA finances
• Copies of secretary's minutes
•
•
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
appendix
• PTA funds should be budgeted for
purposes that advance PTA work.
FUNDRAISING
• Funds should be raised within the
context of the mission ons purposes
of the PTA
• Follow the policies of the National PTA
and the government regulations for
501 (c) (3) tax-exempt organizations.
– 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.
• Currently $4.25 per member:
– $2.00 to Illinois PTA
– $2.25 to National PTA
DUES
• Treasurer and Membership Chairman
work together to make sure number of
members and dues collected agree
• Membership Chairman should keep a
current list of all members
• First dues payment is due to Illinois PTA
State Office postmarked no later than
October 1 of each year
• 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.
MANAGING
MONEY
• 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 order
• Expense Voucher – to accompany
disbursement
Managing
Money
continued
• Deposit Voucher – to accompany
any money collected
• Counting Money – at least two
people should verify cash
received
• PTAs should keep funds in their own
bank account; never deposit funds
into school or school district
accounts or personal accounts
BANK
ACCOUNTS
• Two people should sign checks
• Never sign blank checks
• Never keep cash from PTA events at
home for extended periods of time;
deposit cash immediately after event
• Bank statements
INTEREST
BEARING
ACCOUNTS
• Making your money work for
you is fiscally responsible!
• Reserves for a long-range
project?
• All interest should be reported
to IRS
ELECTRONIC
BANKING
ATMs
• What is Electronic Banking and
EFT?(Electronic Funds Transfer)?
– Refers to the movement of funds from
one bank account to another
– Has become significant factor in today’s
world
– Must enter into agreement with a
financial institution to use EFT
• Examples of EFT in Operation including ATMs
• General Electronic Banking Controls
• Secure passwords
CREDIT
CARDS
• Accepting credit card
payments
• PTAs are discouraged
from using credit cards
for purchases
FOR
More
Information…
• Check out additional
resources on these
issues listed in your
course book
TREASURER’S
FINANCIAL
REPORT
• Given at each meeting of PTA –
executive board and general
membership
• Include opening balance,
receipts and disbursements for
a specific period of time, and a
closing balance.
See sample Treasurer’s Reports in your
course book Appendix
• Federal 990 as required by your
PTA’s gross receipts
GOVERNMENTAL
REPORTING
• Form 1099 – Misc. – Statement for
Recipients of Miscellaneous Income
– If required
• Annual Report to Secretary of State
required for all non-profit
corporations
• AG 990-IL – required for non-profit
organizations with net income in
excess of $50,000
• Provides additional liability
protection for individual PTA
members.
INCORPORATION
• Complete Form NFP-102 at
www.cyberdriveillinois.com
• Registered agent
• Record Certificate of Incorporation
• Annual Report
• Amend bylaws as directed
• Liability – general coverage to
protect you from incidents at PTA
events
INSURANCE
• 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.
• Legal document file
USEFUL
TOOLS
• Volunteer hours
record
• Reminders
• Records Retention
Schedule
Check out
the course book
Appendix
Questions?
Illinois PTA
P.O. Box 907
Springfield, IL 62705-0907
800 877-9617
www.illinoispta.org