financial reporting

2006 Virginia PTA Leadership Training Conference

THE BUDGET

What is a Budget? Merriam-Webster’s Collegiate Dictionary defines a budget as, “A document of the financial position of an association for a definite period of time based on estimates of expenditures during the period and proposals for financing them.”

PREPARING THE BUDGET

One of the most important responsibilities of the local unit, council or district executive board is “to prepare and approve the proposed budget to be presented to the membership for approval.” While most budgets are not generally presented to the membership until September, the preparation of the budget must begin at least several weeks before. Some bylaws require a Budget committee to do the advance work in preparing the budget. Others may assign this task to the PTA Treasurer. Either way, valuable information is available within your own association to assist in the process.

The Treasurer’s Annual Financial Report—The annual report is a summary of income and expenses for the fiscal year and is one of the financial documents required of the Treasurer. It contains the final totals for gross receipts collected for all fund-raisers and the total for local unit membership dues. This report also shows the total of all expenses of the unit as well as the breakdown of individual amounts for each category of expense. Besides being a wonderful tool for budget preparation, it is a great public relations document for your membership, detailing what your PTA accomplished during the year and how their dues payments and fundraising efforts benefited the children at your school.

Previous Fiscal Year Adopted Budget—Did the budget approved last year meet the needs of the association? Was allowance made for routine expenses such as audit expense, liability and bonding insurance, funding to send delegates to Leadership Training and Convention and other expenses needed for general administrative work? Were any expenses overlooked or under-funded last year? Did the previous budget provide enough start up funds for the executive board? Are there encumbered funds (deferred expenses) from last year that must be included in this year’s budget?

Plans of Work—Unit bylaws require that officers and committee chairmen submit for approval plans of work covering the new fiscal year. Understanding the costs of the projects, programs and events planned is critical to preparing the budget. If you are unable to obtain a written copy of the Plan of Work, contact these individuals and request their best estimate of their expenses for budget purposes. Explain that while the budget is an estimate of their expenses, these estimates should be based on research as to the real costs of what they plan to do.

The Membership Chairman—The local unit portion of membership dues is listed under the income section (state and National PTA dues and council dues paid per member are not listed on the local unit budget). Your Membership chairman should

Virginia PTA/PTSA Treasurer, Bill Levey Financial ReportingRevised 7/1/2006

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provide a projection of membership for the upcoming year and an estimate of expenses of the membership campaign. This projection should be based on last year’s numbers plus a realistic increase of possible new members.

The Programs Chairman—What are the costs of the cultural arts programs the unit would like to present for the students and membership during the year? Program costs vary from year to year. The Programs chairman should contact the vendors to determine costs and availability of programs. Review program considerations with your principal. Your principal will need to approve any outside programs the PTA wishes to present at your school.

The Ways and Means or Fundraising Chairman—All fund-raisers must be approved by the membership and this is done through the adoption of the yearly budget. The anticipated gross receipts of each fund-raiser are listed separately under the income section of the budget. Gross receipts are the total amounts collected, not the profit received on each event. The anticipated costs of each fund-raiser should be listed individually under the expense section. Once the fund-raisers are approved by the membership, the president has the legal authority to negotiate and sign a contract with the fundraising vendor.

Donations and Grants—As a 501(c) (3) organization, your association is eligible to accept donations from individuals and other groups who in turn, my deduct these donations from their federal income tax returns. If donations were received during the past fiscal year, you should provide a “Donations” line item under income for the new fiscal year. The state and National PTA as well as other organizations offer grants. In the past, the Virginia PTA/PTSA Health, Juvenile Protection, and Parental Involvement committees have offered grants to local units. Any donations given for a specific purpose and all grants received for a specific purpose must be used for that purpose.

End of Fiscal Year Audit Report—Once the audit is completed, record the

documented balance on hand at the end of the last fiscal year. This amount will be included in your proposed budget as the “Balance forward”.

Budget preparation can be a simple process when input is requested from all involved and adequate time is allotted for preparation.

PREPARATION IS THE RESPONSIBILITY OF THE EXECUTIVE BOARD.

FINAL APPROVAL AND ADOPTION IS THE RESPONSIBILITY OF THE GENERAL MEMBERSHIP.


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OUTLINE FOR PREPARING THE BUDGET

RECEIPTS

Use the “Start Up” from the previous year’s Annual Report as documented by the audit as the first line of your budget. This would be your “Balance Forward”. Use the beginning date of your fiscal year.

Obtain this year’s estimated membership goal from the Membership chairman. Remember that you will only include the local unit portion in your budget. The $2.50 per member sent to the Virginia PTA/PTSA (National PTA, $1.75 + Virginia PTA/PTSA, $.75) do not belong to the unit and are not a part of the receipts of your budget. (Council dues paid per member would not be part of unit receipts). Include this information at the beginning of your budget document for clarification.

Any anticipated donations and secured grants should be listed under receipts.

Obtain the estimated gross receipts from your Ways and Means chairman for all fund raising projects planned for the upcoming year. List all anticipated receipts in alphabetical order for each fund-raising project and their estimated gross amounts. Total to obtain your estimated gross receipts for the upcoming year. Add this total to the “Balance Forward . . .” line to obtain TOTAL.

EXPENSES

Using your committee chairmen budget requests and Ways and Means chairman project expenses, record the amounts that the budget committee feels can be allocated. Allow also for standard unit expenses such as audit, insurance, conference and convention expenses, etc. Grant expenses should be the exact dollar amount of the grant received.

List expenses alphabetically by category along with their estimated amounts and TOTAL.

The difference between your anticipated gross receipts and your estimated total expenses will be your projected “Start Up” for the next fiscal year.

BUDGET FORMULA

BALANCE FORWARD FROM TOTAL ESTIMATED EXPENSES+BEGINNING FISCAL YEAR + EQUALS START UP FOR NEXT FISCALTOTAL ANTICIPATED GROSS YEARRECEIPTS


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AMENDING THE BUDGET

Unanticipated expenses may come up during the year and when these occur it will be necessary to go before your membership and amend the budget. Any change in the budget or purchase of major items not in the original budget must have approval of the general membership and be presented at a regular or specially called meeting.

The beginning of the new calendar year (January) is an opportune time for local units to review adopted budgets for needed amendments. Budgets, adopted by the general membership most often in August, September or October, are estimates of planned income and expenses. Additional expenses or changes in allocated expenditures should be amended. Likewise, completed fundraising activities where anticipated funds were more or less than allocated should be reflected in proposed amendments.

Budget amendments must be approved by the general membership. Many local unit bylaws in Article XI (Executive Board), Section 3 (Duties) have an item stating “to present to the general membership for approval, budget amendments over $________.” with an amount filled in. Since the budget was “previously adopted”, budget amendments require a two-thirds vote or with previous notice as prescribed in your bylaws, a majority vote. As always, a quorum must be established. If no membership approval was necessary, the membership should still be notified of any changes during the financial report.

Keeping your membership informed as to the financial status of their association is a responsibility of the executive board and specifically the treasurer. The budget amendment process is key to reflecting this true financial picture.


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THE TREASURER’S REPORTS

A treasurer’s report should be given at each regular executive board meeting, regular general membership meeting and other meetings when requested. Even if there has been no activity, the treasurer should present a report showing the previous balance on hand as the balance forward, indicate no receipts and no expenses and show current balance on hand. Questions should always be allowed and all treasurers’ reports are “filed for audit.” A copy should be attached to the minutes of the meeting and filed with the secretary.

RECEIPTS

“Balance Forward” – Obtain from “Balance on Hand” line item of your last treasurer’s report.

List all receipts alphabetically, including any donations and interest. Membership dues are recorded by showing the “local unit portion of dues x the number of members taken in since your last reporting date.

“Receipts Not Belonging to Unit” – While these receipts are not included in your budget document (these funds do not belong to the unit), they are deposited into your unit bank account and must be shown on your report under “receipts.” Add these funds to your other receipts to obtain TOTAL RECEIPTS THIS REPORTING PERIOD. Add “Balance Forward . . .” to this total to obtain TOTAL. If using multiple column report, you will not add Balance Forward until end of report.

EXPENSES

Alphabetically list by category all expenses paid since last report. Some units list each check issued. You should use the form that best accommodates the needs of your local unit.

If dues have been paid to the Virginia PTA/PTSA since your last report, record the amount paid under “Disbursements of Funds Not Belonging to Unit”, indicating the number of memberships reported. Add this amount to your total unit expenses to obtain “Total Expenses/Disbursements this reporting period”.

Subtract the “Total Expenses/Disbursements . . .” from your “TOTAL” receipts to obtain “Balance on Hand” as of the date of your report. If using multiple column report, add Balance Forward to difference between receipts and expenses. The “Balance on Hand” at end of the report will become the “Balance Forward” at beginning of next financial report.

All Treasurer’s reports should be timely, accurately reflecting finances on the date the report is given.

VA PTA/PTSA Treasurer, Melissa Nehrbass Financial Reporting5


PREPARING THE ANNUAL REPORT

The “Annual Report” is done at the end of the fiscal year and is a summary of gross receipts and all expenses/disbursements of the unit for that fiscal year. Using your past “Treasurer’s Reports”, summarize all receipts and expenses/disbursements. The Annual Report is a wonderful tool for the Budget committee to use to plan for the new fiscal year. It is also a great overview of the unit’s yearly financial activity. The report should be prepared prior to the audit and given to the auditor with your other treasurer records. After the audit is completed and if records are deemed accurate, the Annual Report should be presented to the executive board and then to the general membership. (If the audit finds errors, those errors should be corrected and reflected in the Annual Report.) Many units print a copy of their Annual Report in their newsletter so all members can see the many activities and projects supported by the PTA. It is a great “Public Relations” tool.

The Annual Report covers the entire fiscal year. The heading should contain your local unit EIN number (If you do not have an EIN number, contact the Virginia PTA/PTSA office, 1-866-4vakids (toll free) or [email protected], and request a copy of Form SS-4. You can receive an EIN number immediately by contacting the IRS, 1-215-516-6999. Each unit should have this number and it should be on file with the Virginia PTA/PTSA. NEVER USE A SOCIAL SECURITY NUMBER OR THE SCHOOL’S EIN NUMBER.

The first line should be the “Balance Forward” at the beginning of your fiscal year (start up funds from your last fiscal year).

ACTUAL RECEIPTS ARE YOUR TOTAL GROSS RECEIPTS FOR THE ENTIRE FISCAL YEAR. List each category alphabetically. TOTAL RECEIPTS are obtained by adding the “Balance Forward . . .” to your total gross receipts of this fiscal year. DO NOT INCLUDE STATE OR NATIONAL PTA DUES IN THIS SECTION. COUNCIL DUES, IF PAID PER MEMBER, ARE TREATED SAME.

ACTUAL EXPENSES are a total of all expenses for this fiscal year. List each category alphabetically as they appeared in your budget as well as the actual amount spent for each category. DO NOT INCLUDE STATE, NATIONAL, OR COUNCIL DUES (PAID PER MEMBER) DISBURSEMENTS IN THIS SECTION. COUNCIL DUES THAT ARE A FLAT FEE PER UNIT WOULD BE INCLUDED UNDER UNIT EXPENSES.

Grants to the school that were not included in the budget but were generated because of excess income received and allocated during the year should be shown as an expense but separate from your general, budgeted expenses. All grants to the school must be approved by the membership. A board or executive committee does not have the authority to approve these items. This item, added to your total expenses, will be your TOTAL FISCAL YEAR EXPENSES.

Subtract your TOTAL EXPENSES from your TOTAL RECEIPTS. The difference will be your “start up” for the next fiscal year.


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Virginia PTA/PTSA and National PTA dues (also Council dues if paid per member) are shown in a separate section of your Annual Report titled “RECEIPTS OR DISBURSEMENTS NOT BELONGING TO UNIT”. Your total membership numbers should agree with the total number of memberships sent to the Virginia PTA/PTSA. By the time you prepare your Annual Report, all monies due the Virginia PTA/PTSA should have been sent to the State PTA office.



THE AUDIT

An audit is always conducted at the end of your local unit’s fiscal year, whenever there is a change in the Treasurer’s position, whenever the current treasurer’s term of office ends (even if the same treasurer is re-elected), or anytime the Executive Board or the Association requests an additional audit. An audit must be conducted at end of the fiscal year regardless of whether the treasurer serves a two-year or more term. A committee or a person from the local unit may conduct the audit. No one with signatory authority may conduct the audit or serve on the audit committee. You may find a CPA to volunteer his/ her time, however, there is no requirement that the PTA hire a CPA.

THE PURPOSE OF AN AUDIT IS:

To certify the accuracy of the books and records of the financial officer.

To assure the membership that the association’s resources/funds are being managed in a business like manner within the regulations established for their use.

PREPARATION FOR AN AUDIT

Financial records should be put in order for the auditing process as quickly as possible following the close of the fiscal year. The treasurer cannot pay bills after the books are closed for audit. The audit should be completed as quickly as possible. Local unit and council bylaws specify within 3 weeks.

The treasurer shall deliver the following to the auditors:

A copy of the last audit report Checkbook and canceled checks Bank statements and deposit receipts Treasurer’s book or ledger The annual financial report Itemized statements and receipts of bills paid Copies of general membership and executive board minutes that would include the adopted

budget as well as any amendments approved during the year Current bylaws and standing rules Any other information requested by the auditor/audit committee

AUDIT PROCEDURE

1. Start the audit with the records posted after the last audit. Check to see if the amount shown on the bank statement corresponds to the starting balance recorded in the checkbook and ledger.

2. Do a sample test of transactions. The size of this sample should be based on the size of the organization. For example, verify all transactions over $50 or $100 or $500 depending on the number of samples the criteria would give you. If mistakes are found, the sample should be broadened to take in more transactions. At some point it may be deemed necessary to audit all the transactions of a PTA.



Some items to look for: Monthly bank reconciliation Unexplained reconciling items Required signatory followed on all checks Unusual endorsements on checks A match of check endorsements to payees Disbursements not supported by invoices or other documentation Blank checks secured in a safe place Deposit ticket dates timely with dates received by bank Timeliness of deposits based on known dates of events All invoices paid by check and not cash

3. Make certain that state and national portions of the membership dues have been kept separate from other receipts and forwarded to the state office within required deadlines.

4. Make certain that money collected for a specific purpose (special projects, Founders Day gift, scholarship funds, council dues, donations, grants, etc.) has been so disbursed.

5. Check treasurer’s reports and annual report for accuracy.

6. After any errors have been corrected by the treasurer and the auditor or audit committee is satisfied that the financial accounts are correct, 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).”

7. If all is in order, the auditor or audit committee should prepare a statement. The auditor must sign the statement. If an audit committee is utilized, each member of the committee must sign the statement.

A sample statement might read, “The auditing committee has examined the records of the treasurer of _______ PTA for the period of (time covered) and found them to be correct. Balance on hand $_______ (signatures of committee)”

8. The audit committee must also submit a report in the event that there are not adequate records available to conduct a proper accounting of the association’s funds.

A sample statement might read, “The auditing committee has examined the records of the treasurer of _______ PTA and finds that more adequate accounting procedures need to be followed so a more thorough audit report can be given.” The auditing committee should indicate the information that is needed.

9. The audit report must be officially adopted by the association and must be included in a completed annual report covering the association’s entire fiscal year. If the report reflects that additional information and verification is needed, the treasurer should provide it.

10. If the validity of the audit report is questioned, an independent certified public accountant should be engaged. At any time during the process, the state PTA may be contacted for information or assistance.



NEVER ASSUME THE OFFICE OF TREASURER UNTIL THE AUDIT OF THE PAST TREASURER’S ACCOUNTS HAS BEEN CONCLUDED.

WHILE THE AUDIT IS BEING COMPLETED:

Treasurer can begin work on the budget for the upcoming fiscal year.

If signatory needs to be changed at bank, Treasurer should obtain bankcards and get appropriate signatures. All officers can have signatory on the PTA account. You generally will also need a copy of the election meeting minutes for bank records.

Treasurer can make deposits and handle other clerical duties. Checks should not be written until the audit is completed.

AFTER THE AUDIT IS COMPLETED:

The treasurer may then assume all responsibilities of office unless the audit reflects information the executive board feels must be clarified by additional action.

The treasurer must forward a copy of the audit to the Virginia PTA/PTSA state office located at 1027 Wilmer Avenue, Richmond, VA 23227.

If the audit documents that the unit had gross receipts of $25,000 or more in the fiscal year, the treasurer MUST file the information form, 990-EZ with the IRS. If the audit documents that the unit had gross receipts of $100,000 or more in the fiscal year, the treasurer MUST file the information form, 990 with the IRS.

If a new treasurer has been elected, it is the responsibility of the outgoing treasurer (the individual responsible for the financial records during the fiscal year documented with the 990-EZ or 990), to complete the 990. However, if that individual is not available to file the required documents, the forms MUST BE FILED AS REQUIRED BY NON-PROFIT LAW.

The treasurer must forward a copy of the 990-EZ or 990 to the Virginia PTA/PTSA state office upon completion.



Local Unit Audit Report

___________________________________

An audit for __________________________________________________, on record with EIN, ______________was completed on __________ by ___________________________________. The audit was presented to the ____________________________________________________ board on ________________and adopted by the general membership on ___________________. The audit period was from ________________to ________________ The date of the last audit was ___________________. A form 990 _________________ as a result of total receipts for the reporting year.

Council Membership:_________________________ District: ___________________________

Signed: __________________________________ Signed: ___________________________ President Treasurer AM phone number: (____) _________

PM phone number: (____) __________ Email: _____________________________________

AUDITOR or AUDIT COMMITTEE:

The records of the treasurer of _____________________________ are correct.

The records of the treasurer of _____________________________ were found to be inadequate to complete the audit after attempting to locate missing records. Please see attached comments.

Auditor:

Signed: _______________________________

Printed Name: _________________________Organization: _________________________Address: __________________________________________________________________Phone number: ________________________

Audit Committee:

Signed: _______________________________Audit Committee Chair

Signed: _______________________________Audit Committee Member

Signed: _______________________________Audit Committee Member

******************************************************************************(Space below for use by the VAPTA Treasurer or designee only).

Verified as a valid local unit audit by: ______________________________________________Print Name:_____________________________________________Signature____________________________Date



Audit Report for: _____________________ EIN: ___________________

The following audit information is submitted to the Virginia PTA as the annual audit of this association.

1. Beginning Balance $

2. ReceiptsTotal of all receipts and credits. If receipt total is over $25,000 unit must file IRS Form 990

$

3. Add line 1 and line 2: $

4. Expenses Total of all checks written and debits $

5. Subtract line 4 from line 3 for “BALANCE ON HAND” (Should match check register)

$

OUTSTANDING CHECKS AND DEPOSITS:

6. Balance on Last Bank Statement: $

Outstanding Checks:

7. Subtract total for Outstanding Checks from Line 6. $

Outstanding DepositsSource of Deposit Amount

TOTAL OUTSTANDING DEPOSITS: $

8. Add total Outstanding Deposits to Line 7. $

9. Enter amount in line 8 to verify “BALANCE ON HAND”Should match check register and amount in Line 5.

$


Check # Payable to: Amount

TOTAL OUSTANDING CHECKS: $


Auditor or Audit Committee Comments:

The auditor or audit committee may include any comments, recommendations or concerns in this section or attach separately to the audit report for consideration by the incoming treasurer and/or local unit board.



Instructions for Completing the Local Unit Audit Report

This format is not intended for electronic fill-in. If you prefer to fill in the report from your computer, download the electronic version from the FORMS section at www.vapta.org MEMBERS ONLY.

Cover Sheet Instructions:The cover sheet is required. Fill in all information above the line.

1. Enter the name of your local unit, include PTA or PTSA.2. Enter your Employee Identification Number (EIN)3. Enter the date of the audit and who performed the audit. Enter only the auditor name or if an

auditing committee was used, simply insert ‘auditing committee’.4. Enter the name of your local unit, the date presented to the PTA board and the date adopted by

the general membership. The audit MUST be adopted by your membership at a general meeting.5. Enter the beginning and end date of your audit period. 6. Enter the date of the last audit.7. If you are a member of a Council, enter the name of the Council and enter the name of your

District. If you are not sure what district your local unit is in, refer to the website or email [email protected] with your local unit name and city or county.

8. Enter the President’s contact information9. If you used an AUDITOR, enter their printed name, organization/company, address and phone

number. The auditor will sign the final report. If you used an audit committee, have the committee members sign the final report.

10. Have the auditor or auditing committee chair check the appropriate box to state the audit is correct or that the records are inadequate to complete an audit after every attempt to account for missing records. If the records are inadequate, the auditor or auditing committee must include in the comments a list of what is missing and recommendations on how to prepare for the next audit.

11. Make sure you have all signatures. Send the report to:

Virginia PTA, Attention: Audits, 1027 Wilmer Ave., Richmond, VA 23357-2419

Report Instructions:Provide the amount for each line. If the number of outstanding checks exceeds the space available, annotate in the last space for checks, ‘continued on a separate piece of page’, however make sure the total in last line is the total for all checks. If the number of outstanding deposits is greater than the number of space, do the same as for outstanding checks. Attach any separate sheets.

Line 9 should be the same as line 5. If your receipts are greater than $25,000, you MUST file a IRS form 990.

Comments Instructions:If the auditor or audit committee has recommendations, concerns or comments, please type in this space.

Questions? Email: [email protected] or if email is unavailable, call 1-866-4vakids for further assistance.




http://www.vapta.org/


AUDIT CHECKLIST / FINANCIAL MANAGEMENT

Name of PTA/PTSA: _____________________________________________________________

Date of this audit: ________ Period covered by this audit: ________Date of last audit:_________ Period covered by this audit: ________ The purpose of this Audit Checklist/Financial Management Form is to provide the PTA/PTSA Board, Treasurer, and Audit Committee with a tool, or guideline, to conduct an inspection of the books and records and a review of the financial management practices of the PTA/PTSA. Stewardship of other people’s money is an important part of volunteer activity and requires systematic and ongoing attention.This checklist should be completed by the board and auditor or audit committee and kept with the adopted audit report and filed with the permanent financial records.

TREASURER’S FILES1. Were all records turned over in a timely manner to the audit committee? Yes No2. Did the treasurer’s books contain a copy of the bylaws and standing rules? Yes No3. Did the treasurer’s books contain a copy of the adopted budget? Yes No4. Did the treasurer’s books contain minutes of all meetings? Yes No5. Did the treasurer’s books contain a copies of previous audits? Yes NoBUDGET1. Was the budget prepared by a budget committee? Yes No

If “NO” – Who prepared the budget? ____________________________________________________________2. Was the budget reviewed by the Board? Yes No3. Did the general membership approve the budget? Yes No

Date:_________ If “NO” Explain: __________________________________________________4. Did the budget conform to the format illustrated in Money Matters? Yes NoTREASURER’S REPORTS1. Was a detailed, written treasurer’s report presented at every Board meeting? Yes No2. Was a detailed, written treasurer’s report presented at every general membership meeting? Yes No3. Were the reports clear, concise and easily understood? Yes No4. Did the reports show, in detail, the source(s) of all income and expenses? Yes No5. Did the treasurer prepare an annual or year-end detailed, written report? Yes NoFINANCAIL PROCEDURES/CONTROLS1. Were PTA funds always deposited promptly into the PTA bank account? Yes No2. Did two (2) or more people always count the funds? Yes No3. Was a receipt always written to the person who gave the funds to the treasurer? Yes No4. Was all income properly allocated and categorized into the appropriate budget line-items? Yes No5. Were expenditures properly allocated and categorized into the appropriate budget line-items? Yes No6. Was there a proper invoice or receipt for each expenditure? Yes No7. Was every expenditure part of the approved budget or properly approved at a general membership meeting or a board meeting? Yes No8. Are all PTA monies kept separate from school, personal, or other organization’s funds? Yes NoMEMBERSHIP DUES1. What was the PTA/PTSA’s total membership count for the year? _______________2. What was the date and dollar amount of dues sent to VAPTA? Date Dues

__________ _____________________ _____________________ ___________

3. What was the amount of dues paid to Council, if applicable? ___________



BANK ACCOUNTS1. With which bank does the PTA/PTSA maintain its checking account?___________________________2. Are all checks used in sequential order? Yes No3. Were all checks properly signed by two (2) officers? Yes No4. Is there a policy that prohibits the signing of blank checks? Yes No5. Are all bank signatory cards up-to-date with at least three signatures approved by the board? Yes No6. Are all checks accounted for, including voided checks? Yes No7. Does the PTA/PTSA have a savings account? Yes No8. Does the PTA/PTSA have any certificates of deposit? Yes NoINSURANCE1. Did the PTA purchase general liability insurance? Yes No2. Did the PTA purchase fidelity bonding insurance? Yes No3. Did the PTA purchase directors and officers insurance? Yes No4. Did the PTA purchase insurance against loss of property (equipment, records, etc.)? Yes No5. Did the PTA have a claim made against any of its insurance? Yes No6. Is a copy of the insurance loss and control guide included in the treasurer’s files? Yes NoINTERNAL REVENUE SERVICE1. What is the PTA/PTSA’s Employer Identification Number (EIN)?2. Did the PTA/PTSA’s gross income exceed $25,000 for the most recent fiscal year? Yes No

If “YES”, has the PTA made plans to complete a 990 EZ form? Yes No3. Did the PTA/PTSA’s gross income exceed $100,000 for the most recent fiscal year? Yes No

If “YES” has the unit made arrangements to hire a CPA for their audit? Yes NoBANK ROCONCILIATION1. Was the bank statement reconciled in a timely manner? Yes No2. Are bank reconciliations verified each month by individuals other than those who are authorized to sign checks? Yes No3. Did the monthly, written treasurer’s reports balance with the bank statement? Yes No4. Did the year-end financial report reconcile to the final bank statement? Yes NoEXAMINATION OF BOOKS AND RECORDS1. Do the canceled checks and the entries in the checkbook and the treasurer reports all agree? Yes No2. Do the deposit slips and the entries in the income ledger and the treasurer reports all agree? Yes No3. Did the expenses for all projects and activities fall within the budgeted levels? Yes No4. Are there any checks written for “cash”? Yes No5. Have all the financial obligations of the PTA been paid in full? Yes NoGRANTS, CORPORATE SPONSORSHIP AND FUND RAISING1. Did the PTA/PTSA receive any money from grants? Yes No

If “YES” list: Grant Source Amount____________________________ __________________________________________ ______________

2. Were monies expended in accordance with grant application? Yes No3. Did the PTA/PTSA receive any money or goods from corporate sponsorship? Yes No4. Was the money or goods used according to the request? Yes No5. Did the PTA follow the 3 to 1 rule with fundraising (reference Money Matters) Yes No6. Did the PTA ensure fund raisers did not exploit children? Yes No7. Were all fund raisers approved by the general membership? Yes No8. Was care taken to see that no laws were violated during fund raisers? Yes No9. Were all school system policies for fund raisers followed? Yes No10. Did the President sign all fund raising contracts? Yes No11. Were sufficient procedures in place to ensure the safe handling of funds? Yes NoOTHER1. Was money budgeted and spent for Leadership Training? Yes No2. Was money budgeted and spent for State Convention? Yes No3. Is a copy of the adopted audit report mailed to the state office each year? Yes No4. Is the PTA/PTSA incorporated? Yes No

If “YES”, has an annual corporate report been filed with the state government, as required? Yes NoDoes the annual report reflect current officers and/or a registered corporate agent? Yes No



Budget Sample 1ANY SCHOOL PTA/PTSA

PROPOSED BUDGETFISCAL YEAR JULY 1, 2005 TO JUNE 30, 2006

Anticipated Revenue Based on 800 members @ $3.50 each (local unit portion only)

Balance forward from July 1, 2005 $ 550.00

RECEIPTSChecking Account Interest $ 20.00Membership Dues (800 @ $3.50) 2,800.00Fund Raising Projects

Fall Festival 3,000.00Family Night Dinner 2,500.00Wrapping Paper Sales 7,000.00

Total Projected ‘05-’06 Receipts $15,320.00

TOTAL $15,870.00

EXPENSESArts In Education/Reflections $ 800.00Audit Expense 100.00Bonding/Liability Insurance 400.00Conference Expenses (State, District, Council) 500.00Council Dues 25.00Council Scholarship Donation 100.00Conventions (State and National) 1,000.00Faculty & Staff Appreciation 500.00Fall Festival Expenses 1,050.00Family Night Dinner Expenses 550.00Hospitality 400.00Juvenile Protection 400.00Membership Campaign 150.00Miscellaneous Expense 200.00Newsletter and Publicity 300.00Officers’ Expenses (telephone, tolls, travel, etc.) 200.00Postage 150.00Programs 1,000.00Scholarship 500.00Supplies 200.00Volunteers In Education 300.00Wrapping Paper Expenses 3,150.00

TOTAL PROJECTED EXPENSES ‘05-’06 $11,975.00

START UP FOR FISCAL YEAR BEGINNING JULY 1, 2006 3,895.00

TOTAL $15,870.00

ADOPTED BY THE ASSOCIATION _____________________________________________________ (DATE)



Budget Sample 2

ANY SCHOOL PTA/PTSAPROPOSED BUDGET

FISCAL YEAR JULY 1, 2005 TO JUNE 30, 2006

Anticipated Revenue based on 800 members @ $3.50 each (local unit portion only)

Balance forward from July 1, 2005 $550.00 Proposed Budget Actual BudgetItem FY 2004-2005 FY 2004-2005 FY 2005-2006

Receipts Checking Account Interest $20.00 $22.50 $20.00 Membership Dues 750 Members 755 Members 800 Members $1,875.00 $1,887.50 $2,800.00 Fund Raising Projects Fall Festival $3,000.00 $2,600.00 $3,000.00 Family Night Dinner $2,000.00 $2,325.00 $2,500.00 Wrapping Paper Sales $7,000.00 $6,800.00 $7,000.00Total Projected Unit Receipts $13,895.00 $13,635.00 $15,320.00

TOTAL $15,870.00

Expenses Arts In Education/Reflections $500.00 $466.30 $800.00 Audit Expense $75.00 $100.00 $100.00 Bonding/Liability Insurance $400.00 $350.00 $400.00 Conference Expenses $500.00 $495.00 $500.00 Council Dues $25.00 $25.00 $25.00 Council Scholarship Donation $100.00 $100.00 $100.00 Conventions $800.00 $957.00 $1,000.00 Faculty & Staff Appreciation $350.00 $415.33 $500.00 Fall Festival Expenses $1,000.00 $1,033.00 $1,050.00 Family Night Dinner Expense $500.00 $537.15 $550.00 Hospitality $400.00 $376.22 $400.00 Juvenile Protection $300.00 $315.00 $400.00 Membership Campaign $125.00 $127.47 $150.00 Miscellaneous Expense $150.00 $163.59 $200.00 Newsletter and Publicity $300.00 $278.99 $300.00 Officers' Expense $175.00 $167.49 $200.00 Postage $125.00 $134.33 $150.00 Programs $600.00 $550.00 $1,000.00 Scholarship $500.00 $500.00 $500.00 Supplies $150.00 $167.23 $200.00 Volunteers In Education $275.00 $282.99 $300.00 Wrapping Paper Expenses $3,000.00 $3,127.00 $3,150.00Total Projected Unit Expenses $10,350.00 $10,669.09 $11,975.00

Start Up Fiscal Year July 1, 2006 $3,895.00

TOTAL $15,870.00

Adopted by the Association _________________________________________________________ (date)

Submitted by: ___________________________________________________________________, Treasurer



Treasurer’s Report Sample 1

ANY SCHOOL PTA/PTSATREASURER’S REPORT

NOVEMBER 19, 2005

BALANCE FORWARD OCTOBER 15, 2005 $ 2,405.00

RECEIPTSCHECKING ACCOUNT INTEREST $ 2.08

Fall Festival Receipts 3,875.50Membership Dues (523 @ $3.50) 1,830.50Wrapping Paper Sales 7,350.00Total $13,058.08

Receipts Not Belonging to UnitState and National PTA Dues (523 @ $2.50) 1,307.50Total Receipts this reporting period

$14,365.58

TOTAL $16,770.58

ExpensesArts In Education/Reflections $ 309.10Bonding/Liability Insurance 359.00Conference Expenses 240.00Council Dues 25.00Council Scholarship Donation 100.00Convention 536.00Faculty & Staff Appreciation 33.00Fall Festival Expenses 1,015.29

HOSPITALITY 58.99Juvenile Protection 56.00Membership Campaign 98.00Miscellaneous Expense 23.00Newsletter and Publicity 73.00Officers’ Expenses 10.80

POSTAGE 3.70Programs 450.00Supplies 43.24Volunteers In Education 51.00Wrapping Paper Expenses 12.00Total Unit Expenses $3,497.12

Disbursements of Funds Not Belonging to UnitState and National Dues (742 @ $2.50) 1,855.00

Total Expenses/Disbursements this reporting period $5,352.12

Balance on Hand, November 19, 2005 $11,418.46



Submitted by: ____________________________________________________, Treasurer

Treasurer’s Report Sample 2

ANY SCHOOL PTA/PTSATREASURER'S REPORT

NOVEMBER 19, 2005

Balance Forward Oct. 15, 2005 $2,405.00

Actual ActualItem Monthly YTD Budget VarianceReceipts Checking Account Interest $2.08 $3.25 $20.00 -$16.75 Membership Dues $1,830.50 $2,597.00 $2,800.00 -$203.00 (523 @ $3.50) Fund Raising Projects

Fall Festival Receipts $3,875.50 $3,875.50 $3,000.00 $875.50

Family Night Dinner $0.00 $0.00 $2,500.00 -$2,500.00 Wrapping Paper Sales $7,350.00 $7,350.00 $7,000.00 $350.00 Total Unit Receipts $13,058.08 $13,825.75 $15,320.00 -$1,494.25

Receipts Not Belonging to Unit State and National Dues (523 @ $2.50) $1,307.50 $1,855.00

TOTAL $14,365.58 $15,680.75 $15,320.00 -$1,494.25

Expenses Arts In Education/Reflections $309.10 $329.10 $800.00 $470.90 Audit Expense $0.00 $100.00 $100.00 $0.00 Bonding/Liability Insurance $359.00 $359.00 $400.00 $41.00 Conference Expenses $240.00 $240.00 $500.00 $260.00 Council Dues $25.00 $25.00 $25.00 $0.00 Council Scholarship Donation $100.00 $100.00 $100.00 $0.00 Conventions $536.00 $536.00 $1,000.00 $464.00 Faculty & Staff Appreciation $33.00 $193.00 $500.00 $307.00 Fall Festival Expenses $1,015.29 $1,015.29 $1,050.00 $34.71 Family Night Dinner Expenses $0.00 $0.00 $550.00 $550.00 Hospitality $58.99 $73.00 $400.00 $327.00 Juvenile Protection $56.00 $101.00 $400.00 $299.00 Membership Campaign $98.00 $115.39 $150.00 $34.61 Miscellaneous Expense $23.00 $51.00 $200.00 $149.00 Newsletter and Publicity $73.00 $101.59 $300.00 $198.41 Officers' Expense $10.80 $38.80 $200.00 $161.20 Postage $3.70 $37.00 $150.00 $113.00 Programs $450.00 $600.00 $1,000.00 $400.00 Scholarship $0.00 $0.00 $500.00 $500.00 Supplies $43.24 $82.90 $200.00 $117.10 Volunteers In Education $51.00 $51.00 $300.00 $249.00 Wrapping Paper Expenses $12.00 $12.00 $3,150.00 $3,138.00Total Unit Expenses $3,497.12 $4,161.07 $11,975.00 $7,813.93

Disbursement Non-Unit Funds State and National Dues


2006 Virginia PTA Leadership Training Conference (742 @ $2.50) $1,855.00 $1,855.00

TOTAL $5,352.12 $6,016.07 $11,975.00 $7,813.93

Balance on Hand Nov. 19, 2005 $11,418.46

Submitted by: ___________________________________________________________, Treasurer



Annual Report Sample

ANY SCHOOL PTA/PTSAANNUAL REPORT

FISCAL YEAR JULY 1, 2005 TO JUNE 30, 2006

EIN Number 54-0000000 Virginia PTA/PTSA Group Exemption Number 3229District (Name of District) Council (Name of Council if applicable)

Balance Forward July 1, 2005 $ 550.00

ACTUAL RECEIPTSChecking Account Interest $ 19.27Membership Dues (916 @ $3.50) 3,206.00Fund Raising Projects

Fall Festival $3,875.50Family Night Dinner 2,100.00Wrapping Paper Sales 7,350.00Total Fund Raising Receipts $13,325.50

Total ’05-”06 Unit Receipts $16,550.77TOTAL RECEIPTS $17,100.77

ACTUAL EXPENSESArts In Education/Reflections $ 789.00Audit Expense 100.00Bonding/Liability Insurance 359.00Conference Expenses (State, District, Council) 435.00Council Dues 25.00Council Scholarship Donation 100.00Conventions (State and National) 1,350.00Faculty & Staff Appreciation 463.49Fall Festival Expenses 1,025.33Family Night Dinner Expenses 439.21Hospitality 250.00Juvenile Protection 505.00Membership Campaign 149.00Miscellaneous Expense 75.00Newsletter and Publicity 297.33Officers’ Expense 103.49Postage 75.00Programs 1,000.00Scholarship 500.00Supplies 187.03Volunteers In Education 276.49Wrapping Paper Expenses 3,319.50Total ‘05-’06 Unit Expenses $11,823.87Grant to School/Computer Software, Science

Equipment, Library Books 3,000.00TOTAL ’05-’06 EXPENSES $14,823.87

Start Up For Fiscal Year Beginning July 1, 2006 $ 2,276.90

RECEIPTS NOT BELONGING TO UNITState and National PTA Dues (916 @ $2.50) $ 2,290.00

DISBURSEMENT OF FUNDS NOT BELONGING TO UNITState and National PTA Dues (916 @ $2.50) $ 2,290.00

Balance Due to State PTA office $ -00-

Submitted by: ___________________________________________________________, Treasurer


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