pptx - James River District PTA

Session 302 and 602: The PTA Treasurer
Jennifer Young – Treasurer
Melissa Nehrbass – Peninsula District Director
Virginia PTA
2012 Annual Conference
July 13, 2012
In this session we will:
• Define the 3-1 rule.
• Identify at least 3 responsibilities of a PTA
• Have basic knowledge of handling PTA funds.
• Identify at least 3 ways to prevent
501(c)(3) Organization
• Sales tax exempt - Income tax exempt
• Donations by donors are treated as charitable contributions for tax
• Must be organized and operate according to the mission set forth in the
Advocate for the health, education and welfare of all children.
• Non-sectarian
• Non-commercial
• Non-partisan
--Cannot engage in political activity
--CAN engage in insubstantial amount of lobbying
• Resources cannot be used for private benefit
Filing forms
Developing the budget
Staying in the budget
Paying bills
Depositing income
Financial statements and year end report
Forms to File
IRS Form 990
Membership dues
Insurance (bonding, fidelity, and liability)
Who completes the Audit?
• An auditing committee of at least three
– Cannot be signers on the unit’s account(s)
• An accountant or person with excellent
working knowledge of PTA accounting
When do you Audit?
• Before a new treasurer takes over
• At the end on each fiscal year
– Should be done within a month of year-end
What is Audited?
Treasurer’s reports
Check book and register
Bank statements
Deposit slips
Receipt book
Previous audit report
Audit Report
• Oral audit report at the general meeting after executive board
• Written audit report given to President, Secretary and
• President calls for adoption of the audit report. This is the
actual acceptance of the monthly financial reports that have
been put on file.
– Auditor or auditing committee all sign and date the report
at the time it is filled out
IRS Form 990
• All units must file 990, 990-EZ, or 990-N or the
e-Postcard by the 15th of the 5th month after
the end of fiscal year.
• Instructions for filing the
990-EZ will be available at
Units in Good Standing
New officer information to the State Office
Dues paid by Dec. 1st
Bylaws are current
Membership Dues
Work with the membership chair
 Membership drives are year ‘round
 Pay due by Dec. 1st, March 1st, and June 30th
■ Can be remitted at any time
• Check the renewal date of the policy
• All treasurers (and officers) should be bonded
• R.V. Nuccio offers insurance to PTAs or you can
get insurance from any other company
Sales Tax Exempt
• Application can be found at:
– www.vapta.org
– LURG (Local Unit Resource Guide
• Will need to obtain a 501(c)3 determination
letter before applying
Budget - Supply Line
• Development
– How?
Look at actual income and expenses from last year
Plan with board what you will add or delete
Include line item for training
Include some for start up for the following year
– Who?
• Executive Board (in the bylaws)
Budget - Getting it Approved
• Present it to the full board
• Make approved adjustments
• Present it to the general membership for
Live within the Approved Budget
• Only approved expenses can be paid
• If an expense is in the budget, it can’t be
voted against as the budget has already been
• Budget changes must be approved by 2/3 vote
at a general meeting
• Keep track of each line item’s income and
Keeping Track
• All income and expenses need to be placed
under a line item
• If you run a program or have an expense or
income every year it should have a line in the
• Membership dues for the National and State
are transfer items - not income
• PTA Funds must be kept separate from other
The 3-to-1 Rule (IRS)
Are you using it to further your purpose/mission?
For every fundraising activity, there should be at least three nonfundraising projects/programs aimed at helping parents or
children or advocating for school improvements:
Gift Wrap Catalog Sales
Take Dad to School Day
Fall Carnival
Reflections Program
PTA Fundraising
• You don’t need to have a fundraiser
• Don’t raise funds, just to raise funds – you
should have a purpose for the money
• Plan what you want to do then plan how to
raise funds to do it
• No set amount that you can have, but if you
have savings account, it should be earmarked
for something
Treasurer’s Briefcase
what you need to do your job
Copy of bylaws and standing rules
Copy of adopted budget
Receipt book
Check book
EIN and Local Unit #
Copy of Sale tax exemption certificate
Determination of 501(c) 3 non profit status
Briefcase cont…
Cash Box
Zippered Bank Bag(s)
Deposit Slips
Cash Turned In Form
Deposit Form
Expense Reimbursement Form
Back Files
Audit Reports
Three (3) Year’s Budgets
Seven (7) Year’s Financial Records
• Have bank statements sent to the school
• Have a non-signer go over the bank
statements and initial (now a requirement for
most insurance)
• Reconcile statements in a timely manner
To Protect the Association
and the Officers:
Never sign a blank check
Never mix PTA money with school money
Never open a credit card
Never hold PTA money overnight
Handling Money
Try to avoid cash if possible
Always have two people count the cash
Fill out and sign cash verification form
Treasurer counts cash with chair
Treasurer gives chair a receipt for cash and
keeps a copy
• Deposit slip filled out and deposit made
Writing Checks
• Have up-to-date signature cards on file at
• Always have two signatures on checks
– Married couples and family members should
never be on the account together
• Never sign a blank check
• Get receipts before signing the check
Expense Reimbursement
• Fill out the expense reimbursement form
• Check the receipts
• Must be within the budget
Paying Bills
Must be approved
Need an invoice or receipt
Must be done with a PTA Check
Must be within the budget guidelines or it
needs membership approval
IRS Guidelines for Spending
• Must fall within three categories:
– Educational
– Operational
– Charitable
IRS Guidelines for Expenditures
• Educational
– Supplement to instruction of students
– Education of your members
– Reflections
– Field trips, assemblies and speakers
IRS Guidelines for Expenditures
• Operational
– Cost of postage and printing
– Cost of training your officers at conference,
leadership development seminars, district and/or
council training
– Supplies needed to run your PTA
IRS Guidelines for Expenditures
• Charitable
– Assemblies
– Fieldtrips
– Celebrations
(keep in mind – opportunities that benefit the majority of
Financial Statements
• Provided at each meeting
– Balance from last meeting
– Plus the itemized income
– Less the itemized expenses
– Current balance
– Budget vs Actual
Year End Report
• Provided at the end of the fiscal year
– List starting balance
– Break down expenses by line item
– Break down income by line item
– State the current balance
Checklist - Before Fraud Occurs
• Follow proper fund handling procedures
• Never sign a blank check
• Check insurance policy to see if it requires
prosecution in order to recover a loss
• Have a written money handling and control
policy in your standing rules
Warning Signs of Fraud
Treasurer’s report delayed or non-existent
Delayed deposits of cash receipts
Missing supporting documents
Multiple corrections in the cash book
Check bouncing when there should be available
• Lifestyle or behavior changes of staff or volunteers
If Fraud is Suspected
DO NOT make accusations! (libel, slander)
Determine suspect’s access to other PTA resources
Gather facts, documents, and interviews.
Identify all accounts involved and consider freezing
or closing them
Contact your District Director and/or
State Treasurer
Contact the authorities
Contact the insurance company
Money Matters from National PTA
Financial section in VA PTA LURG (Section 4)
State Treasurer
Leadership Training Conference
District and/or Council Training Events
For more information contact:
Jennifer Young, Treasurer, Virginia PTA