The treasurer is the legally responsible, authorized custodian, elected by the members, to have charge of PTA funds.
Additionally, the Treasurer must also:
- Be sure that the books have been audited before accepting them.
- An audit should be conducted immediately following the end of a term of office. This may or may not be the same as the fiscal year. An audit at the end of the fiscal year is required in bylaws and also required by Virginia Code. An audit checklist is provided in the forms section of this guide to assist your unit in preparing for your audit.
- Check to see that the new treasurer and two other officers (president and secretary or other officer) are authorized with the bank to sign checks. Always have two signatures on every check.
- Obtain liability, bonding and directors and officers insurance for the unit.
- Work with the budget committee to develop a budget for the coming PTA year.
MAINTAIN FINANCIAL CONTROL
- Maintain an accounting system with an accurate record of the expense and receipt transactions of the unit. Keep records up to date.
- Keep canceled checks, paid bills, receipts, and bank statements for annual audit and do timely reconciliations of the bank statements .
- Always obtain a receipt for every invoice, purchase, other payment made by the PTA.
- Always register every check in the checkbook at the time it is written and remember to write on the check and the check stub the reason that the check was written.
- NEVER SIGN A BLANK CHECK.
- NEVER PAY WITH CASH. Checks provide a record of transactions.
- Always deposit all monies received in the PTA account immediately. Never leave money in the school or in someone’s home. Most banks will provide non-profit organizations with access to the night depository without charge.
- Never deposit any PTA money in anyone’s personal account or in the school building account.
- PTA funds must be kept separate from school funds. School funds are public monies. PTA funds are private monies. Checks should not be written to the school or the principal unless it is for a budget item or purchase. (Be sure you receive a receipt for any checks written to the school or the principal.) This is to protect the school, the PTA and you.
- Write checks only for items in the budget. Any change in the budget, or purchase of major items not in the budget, must have the approval of the general membership at a regular or specially called meeting.
PAYMENT OF MEMBERSHIP DUES
- Cooperate with the membership chairman and obtain the correct number of PTA members for dues to be sent with the remittance form to the state office.
- Record all state and national dues separately from local funds. The local unit collects these funds for the state and national PTAs. If your unit belongs to a council and council dues are paid per member, they are also separated from local funds.
- State and national funds must not be included as part of the unit’s funds to be used for local unit expenses or included in the local unit budget. • Send all state and national dues to the state office before December 1, March 1, and June 30. If applicable, send council dues by dates required in council bylaws.
- Send state and national dues on the remittance form provided by the state office and included in this guide (Forms Section 9).
CONTENTS OF THE TREASURER’S FILE
- A copy of the PTA local unit bylaws and standing rules
- A copy of the budget adopted by the organization
- Receipt book to acknowledge money received by the treasurer
- Checkbook to disburse funds as authorized
- Treasurer’s account book in which to keep the financial records of the organization
- Permanent IRS tax information including the following:
- Employer Identification Number (EIN)
- Copies of filed Form 990,990EZ or 990N and other required IRS forms
- Virginia PTA/PTSA Group Exemption Number (GEN) 3229
- A copy PTA Money Matters Quick-Reference Guide from National PTA
- Ten Years’ file of audit reports (for historical purposes)
- Five years’ file of cash receipts, petty cash records, bank deposits, invoices, and statements
- Three years’ file of budgets
- General correspondence
The bylaws provide that the treasurer report regularly to the association (at each regularly scheduled meeting and as requested). The report should show:
The balance on hand at the beginning of the year, month, or as of the last meeting
- List all receipts in detail and total
- List all disbursements, itemized, and total
- End with the balance on hand as of the date of the report
The report, when read at a meeting, should not be adopted, but should be filed for audit.
An audit is always conducted at the end of the fiscal year as required in local unit bylaws and by Virginia law, 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 reelected), or anytime the executive board or the association requests an additional audit. An audit must be conducted at least once a year (fiscal year-end audit). A committee or a person from the local unit may conduct the audit. No one authorized to sign checks may conduct the audit or serve on the committee. A PTA may appoint an accountant; however, this is not required. An audit committee composed of PTA members with good math skills may conduct an audit. All audit reports should show the total receipts and disbursements for the fiscal year. IRS regulations may require a professional audit be done when gross receipts are over $100,000. Please check IRS instructions for 990 for details. (An audit form and an audit checklist can be found in forms sections of this guide.) Once the audit is adopted by the general membership as required by local unit bylaws, a copy must be sent to the state PTA office.
At the end of the fiscal year, as stated in the bylaws, an annual financial report should be made to the association. (A sample of an annual report is included in Section 4 of this guide.) The annual report becomes official after an audit has been completed and the association at a regularly scheduled meeting adopts the audit report.
TREASURER – BEFORE LEAVING OFFICE
- Be sure all dues have been paid
- If you missed the June 30 deadline and no dues are showing on Virginia PTA books, the local unit will not receive any mailings from the state office and no new membership cards will be sent to the unit until dues are paid
- Units showing no dues paid as of June 30 will not be permitted to have voting delegates at state convention or at district meetings and will not be eligible for any state awards
- Balance the books to be ready for audit
- Be sure the bank’s books agree with the balance in the treasurer’s books
- Prepare the annual report covering the treasurer’s term of office
- Prepare any reports required by the government
- Arrange for transfer of the funds of the association to the new treasurer
- Obtain signature cards from the bank so that the new treasurer may draw on funds without delay following the end of term or fiscal year-end audit
- As required by Virginia law, be sure the following are forwarded to Virginia PTA state office to be posted in your local unit file:
1) Copy of adopted fiscal year-end audit.
2) If unit was required to file a 990,990EZ or 990N with the IRS, a copy of that document.
3) EIN number is on file
4) Check with president or secretary to see that a listing of current local unit officers is on file with state office.