hpt council pta money handbook 121208

8/2/2019 Hpt Council PTA Money Handbook 121208

1/23

PTA MONEY HANDBOOK

DOs

DONTs

and

HOWs

Revised: November 30, 2008


2/23

Message from the President.

Our Hampton Council of PTA/PTSAs has developed this document to helpour local units understand the importance of proper methods for handlingPTA money. PTA officers are responsible for the proper accounting ofPTA money and must realize that PTA money belongs to the memberswho must approve how its spent. These funds are for the benefit of ourchildren who are the ones that are directly impacted if that money cannotbe accounted for, whether it be from carelessness or deliberate stealing. Itis imperative that we take this responsibility seriously. Asking for receiptsand properly managing money is not a sign of distrust. It protects us asofficers and protects the children for whom we are doing all this. Thefollowing document starts by giving you one page that gives you the basicsof what you can and cannot do. After that, we give more detailed

information on how to make sure you handle each of those items properly.In the appendices, we provide sample documents for budgets, treasurerreports, reimbursement forms and other items that we took from VA PTAdocuments. You can choose to use or not use these exact formats but besure that you cover the same basic information with whatever paperworkyou develop for your PTA. Thanks for taking the time to read this andmaking sure that your fellow board members understand the proper

procedures for managing your money. If you have any questions orsuggestions for improving this document, please contact a HamptonCouncil board member.

Thanks so much for all you do for our students in Hampton!

Monica Smith, President, Hampton Council of PTA/PTSAs

Table of Contents

Page(s)

The Basic Dos and Donts. 1The Hows (how to do each item)... 2 - 6

Appendix A: How to develop a budget & samples 7 10Appendix B: Sample Treasurer Reports. 11Appendix C: Sample cash box counting sheet.. 12Appendix D: Sample Reimbursement form 13Appendix E: Audit form and checklist. 14 - 19


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PTA MONEY

DOs and DONTs

Develop & have your general membership approve your budget for the school year.

Prepare & present a treasurers report for all board & general membership meetings.

Always have two signatures on each check.

Always use receipts when cash exchanges hands.

Have another board member besides the treasurer, review and initial each bankstatement to ensure it matches treasurer report and was reconciled.

Always have receipts for all checks written.

Assign each check written to a budget line item and make sure there is enough moneyin that budget item for that amount.

File each year with the IRS (e-postcard, 990-EZ or 990) as applicable.

Always keep school money separate from PTA money.

Audit your books every year and anytime a new treasurer takes office.

Highly recommend you get insurance.

Dont order fundraiser items until all checks clear.

Never use the banks counter checks. Always use checks from your PTA check-book.

Never write a check for cash and never withdraw cash from the bank.

Never sign blank checks.

Hampton Council of PTA/PTSAs 1 November 30, 2008


4/23

PTA MONEY

HOWsDevelop & have your general membership approve your budget for the school

year.

See Appendix A with info from VA PTA on how to write a budget andfor samples. You should present it to your membership early in the year for approval sinceyou really shouldnt write checks before having an approved budget (there are exceptionslike paying insurance or buying membership envelopes which may be due before you canget budget approved). You can present it by reading it aloud or in a Power pointpresentation or on an overhead or pass out copies whatever works best for your situation.After you present it, ask if there is any discussion and vote on it for approval. It isimportant that your membership know how money is to be spent for the year, since it istheir money. It also helps for them to see that you have plans. More people will get

involved when they know there is a plan.

Prepare & present a treasurers report for all board & general membership

meetings.

See Appendix B with samples of reports from VA PTA. You shouldpresent your latest treasurer report at each board and general membership meeting. Thiscan be read aloud or you can pass out copies whatever works best for your situation.

After you present it, ask if there are any questions and then announce that you will file thereport for audit. It is important that your membership know that you are tracking yourmoney.

Always have two signatures on each check.

Make sure that the people who have signature authority on your account

are elected officers. Since you need two signatures, you may want to have 3 or 4 peoplewith authority to write checks in case someone cannot be reached. If you need to write acheck to a person that has signature authority, it is best practice to have 2 others sign thecheck if possible, but not a requirement.

Always use receipts when cash exchanges hands.



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PTA MONEY

HOWs

Note who took the cash and who gave it. Appendix C gives a sample

balancing sheet for counting the cash box. (example: membership chair has a cash box. Atend of night, the membership chair and treasurer count the cash. Treasurer givesmembership chair a receipt for the amount of cash in cash box. Treasurer takes the cash tothe bank to deposit it. Membership chair checks next treasurer report to make sure thatamount of money has been deposited and that it was credited under the proper budget line.)In the case of membership cards, that can act as the receipt for a new member so you donthave to give them a receipt also. However, if you do not have membership cards toprovide them at the time, you must provide a receipt for them to have until membershipcards are available.

Have another board member besides the treasurer, review and initial each

bank statement to ensure it matches treasurer report and was reconciled.

This is a requirement for most insurance. It also makes sense because atreasurer can write reports every month, but if you dont see the bank statement matchingthat then he/she could really be putting any numbers on there. Bottom-line is that you needto make sure the money is in the bank.

Always have receipts for all checks written.

For audit purposes, you must have receipts showing that each check waswritten for a specific item(s) for a specific purpose. You should use a reimbursement form(see sample in Appendix C). If a receipt is lost, the board can determine how to documentan expense so that the person can be reimbursed. If you need to write a check to someonein advance, you can do that. To do that, you must have something in writing estimating theamount for that item and explaining the purpose/budget item. Then, after the item(s) is

bought, that person needs to provide the actual receipt. If the actual cost was less than theamount on the check, then that person needs to refund the PTA the amount of thatdifference. If the actual cost is more than the amount on the check, then the PTA can writea check to that person for the additional amount.

Assign each check written to a budget line item and make sure there is enough

money in that budget item for that amount.



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PTA MONEY

HOWs

The treasurer should always have a running account for what is spent for

each budget item so that he/she can track expenses and make sure you dont go overbudget. Plus, any chairperson that has a budget amount should keep a running count ofwhat is spent on their budget so that they can check that to the treasurers report. Onreimbursement forms, you should have a place where the applicable chairperson must signto approve any expenses coming out of that chairpersons budget. They can verify that theitem was for that budget item and that there is enough money for it. That chairperson alsoknows of any future plans/expenses that are expected so they can make sure they arentusing up all their budget too soon.

File each year with the IRS (e-postcard, 990-EZ or 990) as applicable.

All PTAs must file taxes every year now. Reference the HamptonCouncil of PTA Handbook for detail on how to do this.

Always keep school money separate from PTA money.

PTA is a separate organization from the school. Each has its own budgetand money needs to be handled separately. For example, you should not be collecting PTAmembership money and school gym clothes fees in the same cash box. This applies tomixing PTA money with money for any other organization as well.

Audit your books every year and anytime a new treasurer takes office.



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PTA MONEY

HOWs

Audit should be done by a committee of 3 people or by a professional

CPA. If done by committee, none of those individuals must have had signature authorityon the bank account during the audit period. All financial records and check-book registermust be given to this committee. Checks should not be written until audit is done, so auditshould be prepared in a timely manner. The audit form and checklist are in Appendix E.Please reference your bylaws because they may give additional requirements for auditingyour PTA books. After your audit is complete, you must present it at your next generalmembership meeting to adopt it. Once adopted, put that date on the audit form and mailcopies to the city and state PTAs per instructions in our Hampton Council of PTA/PTSAshandbook.

Highly recommend you get insurance.

Reference the Hampton Council of PTA Handbook for details on typeof coverage and contact info for an insurance company.

Dont order fundraiser items until all checks clear.

A common scam is for individuals to solicit orders for a fundraiser andtell those people that they just take cash. Then, they write a check for the entire amountand keep the cash. This would work fine if the check clears, but sometimes peopleintentionally write a bad check. If the PTA has already ordered those items and thefundraiser company doesnt have a return policy, then they are stuck with those items OR iftheyve already given the items to the person that wrote the bad check, they are stuck withtrying to collect the money from that individual which can be tough. It is best to just add

another 10 days to your order time and ensure checks clear before ordering.

Never use the banks counter checks. Always use checks from your PTA

check-book.



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PTA MONEY

HOWs

All checks written should come out of the 1 PTA check-book. There is

no reason to use any other checks. The treasurer should write all checks so that he/she cantrack expenses as they are made.

Never write a check for cash and never withdraw cash at the bank.

All checks must be made out to a person or organization to properly

track expenses. All expenses must be made by check. Seeing checks written to cash is ared flag for improper and possibly illegal activity. If someone needs cash, you need towrite a check to that person and have them cash it at their bank.

Never sign blank checks.

If your president is typically the 2nd signature on an account and isdifficult to track down, it is often tempting for that president to sign a few blank checks &leave those with the treasurer so that he/she doesnt have to find the president every time acheck needs signed. This is not allowed. You should set up a way to make it convenient.Make sure that those that have signature authority are convenient to you. Have at least 3people on the account in case you cant reach the 2nd person for signature. Set up a systemof passing checks off to each other by having a standard day each week to meet or set up aplace in the school office to leave checks requiring signature.



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APPENDIX A (from VA PTA training documents)

OUTLINE FOR PREPARING THE BUDGET

RECEIPTS

Use the Start Up from the previous years Annual Report as documented by the audit as the

first line of your budget. This would be your Balance Forward. Use the beginning date ofyour fiscal year.

Obtain this years estimated membership goal from the Membership chairman. Remember thatyou will only include the local unit portion in your budget. The $2.50 per member sent to theVirginia PTA/PTSA (National PTA, $1.75 + Virginia PTA/PTSA, $.75) do not belong to theunit and are not a part of the receipts of your budget. (Council dues paid per member wouldnot be part of unit receipts). Include this information at the beginning of your budget documentfor 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 raisingprojects planned for the upcoming year. List all anticipated receipts in alphabetical order foreach fund-raising project and their estimated gross amounts. Total to obtain your estimatedgross receipts for the upcoming year. Add this total to the Balance Forward . . . line toobtain TOTAL.

EXPENSES

Using your committee chairmen budget requests and Ways and Means chairman projectexpenses, 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 willbe 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 FISCAL

TOTAL ANTICIPATED GROSS YEAR

RECEIPTS



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AMENDING THE BUDGET

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 beyond those allowed by a local units bylaws must be approved by the

general membership. Since the budget was previously adopted, amendments require a two-thirds vote or with previous notice as prescribed in your bylaws, a majority vote. As always, aquorum must be established.

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



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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 200.00

Newsletter 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 $11,975.00START UP FOR FISCAL YEAR BEGINNING JULY 1, 2006 3,895.00

TOTAL $15,870.00

ADOPTED BY THE ASSOCIATION _____________________________________________________

(DATE)



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Budget Sample 2ANY 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 $550.00Proposed

Budget Actual BudgetItem FY 2004-2005 FY 2004-2005 FY 2005-2006

ReceiptsMembership Dues 750 Members 755 Members 800 Members

$1,875.00 $1,887.50 $2,800.00Fund Raising Projects

Fall Festival $3,020.00 $2,622.50 $3,020.00Family Night Dinner $2,000.00 $2,325.00 $2,500.00Wrapping Paper Sales $7,000.00 $6,800.00 $7,000.00

Total Projected Unit Receipts $13,895.00 $13,635.00 $15,320.00

TOTAL $15,870.00

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

Total 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



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APPENDIX B (from VA PTA documents)

Treasurer Report SampleANY SCHOOL PTA/PTSATREASURER'S REPORT

NOVEMBER 19, 2005

Balance Forward Oct. 15, 2005 $2,405.00Actual Actual

Item Monthly YTD Budget Variance

ReceiptsMembership Dues $1,830.50 $2,597.00 $2,800.00 -$203.00

(523 @ $3.50)Fund Raising Projects

Fall Festival Receipts $3,877.58 $3,878.75 $3,020.00$858.75

Family Night Dinner $0.00 $0.00 $2,500.00 -$2,500.00Wrapping 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 UnitState 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

ExpensesArts In Education/Reflections $309.10 $329.10 $800.00 $470.90Audit Expense $0.00 $100.00 $100.00 $0.00Bonding/Liability Insurance $359.00 $359.00 $400.00 $41.00Conference Expenses $240.00 $240.00 $500.00 $260.00Council Dues $25.00 $25.00 $25.00 $0.00Council Scholarship Donation $100.00 $100.00 $100.00 $0.00Conventions $536.00 $536.00 $1,000.00 $464.00

Faculty & Staff Appreciation $33.00 $193.00 $500.00 $307.00Fall Festival Expenses $1,015.29 $1,015.29 $1,050.00 $34.71Family Night Dinner Expenses $0.00 $0.00 $550.00 $550.00Hospitality $58.99 $73.00 $400.00 $327.00Juvenile Protection $56.00 $101.00 $400.00 $299.00Membership Campaign $98.00 $115.39 $150.00 $34.61Miscellaneous Expense $23.00 $51.00 $200.00 $149.00Newsletter and Publicity $73.00 $101.59 $300.00 $198.41Officers' Expense $10.80 $38.80 $200.00 $161.20Postage $3.70 $37.00 $150.00 $113.00Programs $450.00 $600.00 $1,000.00 $400.00Scholarship $0.00 $0.00 $500.00 $500.00Supplies $43.24 $82.90 $200.00 $117.10

Volunteers In Education $51.00 $51.00 $300.00 $249.00Wrapping Paper Expenses $12.00 $12.00 $3,150.00 $3,138.00

Total Unit Expenses $3,497.12 $4,161.07 $11,975.00 $7,813.93

Disbursement Non-Unit FundsState and National Dues

(742 @ $2.50) $1,855.00 $1,855.00



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APPENDIX B (from VA PTA documents)

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



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APPENDIX C

Cash Box Deposit Balancing Sheet

Committee __________________________________

.01 x _____________ = ___________________________

.05 x _____________ = ___________________________

.10 x _____________ = ___________________________

.25 x _____________ = ___________________________

1.00 x _____________ = ___________________________

5.00 x _____________ = ___________________________

10.00 x _____________ = ___________________________

20.00 x _____________ = ___________________________

50.00 x _____________ = ___________________________

100.00 x _____________ = ___________________________

TOTAL CASH $______________

Total Checks $___________

Total Deposit $___________

Verified by ___________________and _____________________



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APPENDIX D

REIMBURSEMENT/CHECK REQUEST FORM

Requested by: __________________________________ Date requested:___

Budget Item/Committee to be charged: _________________________________________

Make reimbursement check payable to: ____________________________________________

Address (if needed)______________________________________________________________________________

_____________________________________________________________________________

Amount of check: ____________________________

Date needed: ________________________________

Event, program, or project supported: _______________________________________________

______________________________________________________________________________

______________________________________________________________________________

Receipt attached: ______Yes ______No

If no receipt, explain: ___________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

Approval of Chairperson for that budget/committee or PTA President:______________________________________________________________________________

(Signature)

**Reminder: Receipts are needed for audit documentation

******************************************************************************

(For Treasurer's use only) Check # _______________ Date Paid ______________

Budget Line Item/Officer/Committee Charged______________________________________________________________________________

Notes:



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APPENDIX E

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 auditwas ___________________. A form 990 _________________ as a result of total receipts for thereporting 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 inadequateto 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



18/23

APPENDIX E

Audit Report for: _____________________ EIN: ___________________

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

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 Deposits

Source of Deposit Amount

TOTAL OUTSTANDING DEPOSITS: $

8. Add total Outstanding Deposits to Line 7. $


Check # Payable to: Amount

TOTAL OUSTANDING CHECKS: $


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APPENDIX E

9. Enter amount in line 8 to verify BALANCE ON HANDShould match check register and amount in Line 5.

$



20/23

APPENDIX E

Auditor or Audit Committee Comments:

The auditor or audit committee may include any comments, recommendations or concerns in thissection or attach separately to the audit report for consideration by the incoming treasurer and/or

local unit board.



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APPENDIX E

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

8. Enter the Presidents 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 thecommittee members sign the final report.

10. Have the auditor or auditing committee chair check the appropriate box to state the audit iscorrect or that the records are inadequate to complete an audit after every attempt to account formissing records. If the records are inadequate, the auditor or auditing committee must include inthe 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 totalin last line is the total for all checks. If the number of outstanding deposits is greater than the number ofspace, 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 form990.

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 furtherassistance.

http://www.vapta.org/http://www.vapta.org/http://www.vapta.org/mailto:[email protected]:[email protected]:[email protected]://www.vapta.org/mailto:[email protected]:[email protected]


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APPENDIX E

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, andAudit Committee with a tool, or guideline, to conduct an inspection of the books and records and a review of thefinancial management practices of the PTA/PTSA. Stewardship of other peoples money is an important part ofvolunteer 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 auditreport and filed with the permanent financial records.

TREASURERS FILES

1. Were all records turned over in a timely manner to the audit committee? Yes No2. Did the treasurers books contain a copy of the bylaws and standing rules? Yes No3. Did the treasurers books contain a copy of the adopted budget? Yes No

4. Did the treasurers books contain minutes of all meetings? Yes No5. Did the treasurers books contain a copies of previous audits? Yes NoBUDGET

1. Was the budget prepared by a budget committee? Yes NoIf 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 inMoney Matters? Yes NoTREASURERS REPORTS

1. Was a detailed, written treasurers report presented at every Board meeting? Yes No2. Was a detailed, written treasurers 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/CONTROLS

1. 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 organizations funds? Yes NoMEMBERSHIP DUES

1. What was the PTA/PTSAs 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? ___________



23/23

APPENDIX E

BANK ACCOUNTS

1. 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 NoINSURANCE

1. 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 treasurers files? Yes NoINTERNAL REVENUE SERVICE

1. What is the PTA/PTSAs Employer Identification Number (EIN)?2. Did the PTA/PTSAs 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 No

3. Did the PTA/PTSAs gross income exceed $100,000 for the most recent fiscal year? Yes NoIf YES has the unit made arrangements to hire a CPA for their audit? Yes No

BANK ROCONCILIATION

1. 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 treasurers 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 RECORDS

1. 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 No

5. Have all the financial obligations of the PTA been paid in full? Yes NoGRANTS, CORPORATE SPONSORSHIP AND FUND RAISING

1. Did the PTA/PTSA receive any money from grants? Yes NoIf 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 (referenceMoney 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 No

9. 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 NoOTHER

1. 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

hpt council pta money handbook 121208

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