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PTA Finance Training
2016 California State PTA
The Finance Team
Association Members
The President
The Treasurer
Board Members
The Secretary
The Financial Secretary
The Auditor
Financial Accountability
Executive Board (Article V – election of officers)
Treasurer & Financial Secretary (Article VI – duties of officers)
Auditor
(Article VI – duties of officers)
Fiduciary responsibilities
Handling, recording and reporting
Monthly, bi-annual, and on-going
• Approves programs
• Approve the budget
• Authorizes expenses
• Approves minutes
The association is the ultimate authority (Bylaws Article VIII, Section 3)
Association Responsibilities
• Releases budgeted funds to the board
• Ratifies every check
• Approves budget changes
• Fiduciary duties: care, loyalty, obedience
• Transparency duties: simple, complete & clear
Board Responsibilities
The board is subordinate to the association (Bylaws Article VIII, Section 3)
Board Responsibilities
The board is subordinate to the association (Bylaws Article VIII, Section 3)
• Transacts business as authorized by the association
• Authorizes payment of bills within budget limits
• Authorizes payment of unbudgeted bills within approved limits
• Receives PTA money
• Gives a receipt for PTA money received
• Deposits money into a PTA bank account
Financial Secretary (Bylaws Article V)
• Records money received and deposits
• Presents report at board and association meetings
• Gives a copy of the deposit slip to the treasurer
• Audit the financial records:
• mid-term and year-end
Auditor (Bylaws Article V)
• Present audit reports per schedule in bylaws
• Verify the completion and filing of taxes
• upon resignation of the treasurer or financial sec.
• upon resignation of any check-signer
• Recommended: 5-minute audit of bank statements
The Budget
Treasurer’s Reports
Budget-to-Actual
“Treasurer’s Report”
Annual Financial Report
Sunny’s PTA Budget
Fiscal Year2015
Receipts Dues Fundraiser #1
$1,000.00 $32,000.00
Total receipts: $33,000.00
Expenses Supplies Field trips
$500.00 $32,500.00
Total expenses: $33,000.00
Estimated
Budget-to-Actuals
Receipts
Dues
Fundraiser #1
$1,000.00
$32,000.00
Total receipts: $33,000.00
Expenses
Supplies
Field trips
$500.00
$32,500.00
Total expenses: $33,000.00
$300.00
$22,000.00
$22,300.00
$400.00
$3,500.00
$3,900.00
Actuals Estimated
• prepare the budget (committee & board)
• report budget-to-actuals to the board
• adopt the budget (association)
• change the budget (association)
• release funds to the board (association)
The BUDGET Process
Budget-to-Actual Receipts
Budget-to-Actual Disbursements
Sunny’s Executive Board Treasurer’s Report
Income Dues Fundraiser #1
$1,000.00 $22,000.00
Total income: $23,000.00
Expenses
Check #500 - Supplies for book fair
Check #501 – 3rd grade field trip
$500.00
$2,500.00
Total expenses $3,000.00
Previous balance on April 12, 2015 $6,510.00
Ending balance on May 12, 2015 $26,510.00
Sunny’s PTA Treasurer’s Report
Sunny’s PTA Treasurer’s Report
Sunny’s PTA Annual Financial Report
7/1/15 thru 6/30/16
Income Membership Income Donations
$1,000.00 $22,000.00
Total income:
$23,000.00
Expenses
Program expenses
Operating expenses
$20,000.00
$3,000.00
Total expenses $23,000.00
Sunny’s PTA Annual Financial Report
Sunny’s PTA Annual Financial Report
• membership count and dues monthly
• a copy of all government filings (990, 199 and RRF-1)
• a copy of the approved budget
• a copy of the approved programs
• a copy of the mid-term and year-end audits
Remit to Council/District
• insurance premium (annually in the fall)
• Workers’ Compensation Payroll Report for (November)
Handling Receipts (money received)
“Two person” rule (not related or living together)
– handling PTA mail that contains money
– handling donations and membership dues
– handling cash at a PTA fundraiser
Handling Receipts (cont.)
• Processing cash and checks received
– “For Deposit Only” & PTA bank account #
– Record all cash and every check on a CVF
– Attach adding machine tape totals to CVF
Handling Receipts (cont.)
• “Cash Verification Form” (CVF)
– Two person rule – verify and sign CVF
– Deposit / attach deposit slip to the form
Cash Handling – Video Example
Authorizing Payments
• association “releases” the funds to board
• board authorizes payments
• association ratifies checks
• president/secretary sign Payment Authorization
• treasurer writes check
Writing Checks
• “Two person” rule
– signers may not be related or living together
• Record checks in the register and ledger
• Present a list of checks to association for ratification
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Banking
Deposits
• Every deposit has a corresponding Cash Verification form signed by two people
• Deposit is counted by two people – the depositor and the bank teller
Banking (cont.)
ATM and Credit Cards
• Never for purchases or withdrawals
• Deposit-only card is allowed
Banking (cont.)
Bank Statements
• Mailed to PTA address, not someone’s home
• Request copies of checks written
• Opened and inspected by an elected officer who isn’t authorized to sign checks.
Banking (cont.)
Five Minute Audit of Bank Statements
Online payments or ATM withdrawals
Two authorized signatures on every check
Deposits and checks match reports
Banking (cont.)
Reconcile Bank Statements
• Bank balance Vrs. Treasurer’s records
Treasurer records reflect real-time
– Non Sufficient Funds – returned checks
– Contact payers ASAP
- Collect fees - NSF check = negative to the income account - When collected = use same income account
Dealing with NSF Checks
PTAEZ
• Designed by PTA for PTA!
• Form 990 and 199 solution
•Multiple users
• California PTA specific reports
PTAEZ
• Web based software
• Continuity
• • Accessibility/Transparency
• Your own web store
•Manage membership & volunteers
Annual Government Filings
Step 1: Prepare your Annual Financial Report
Step 2: File with the IRS
Gross receipts < $50,000 990N
Gross receipts > $50,000 990EZ or 990
Step 3: File with the FTB
Gross receipts < $50,000 199N
Gross receipts > $50,000 199
Annual Government Filings
Step 4: File with the AG RRF-1
Raffles
• Legal raffle –
• California Attorney General’s website
• www.ag.ca.gov/charities/raffles.php
• Registration Form
• Charitable Trust (CT) Number required
http://www.ag.ca.gov/charities/raffles.php
General liability $1,000,000
Directors & officers $1,000,000
Bonding $15,000
Workers’ Compensation 1st $1,000 is covered
Insurance
• Follow the Green, Yellow, Red guide
• Follow all PTA financial and approval procedures
Insurance
Election
Appoint Committees
Assessments, Goals, Plans
Preliminary Budget
end-of-term Audit
1st PTA Meeting
• Approve End-of-term Audit • Annual Financial Report • Approve programs • Approve fundraisers • Adopt Budget
remit dues monthly
Mid-term Audit
Sept
March
May
July
Nov
January
February
August
April
June October
December
End of Term
Annual Financial Report
Mid-term
Start of
school
Last PTA Meeting • Approve preliminary budget • Approve paying summer bills
pay insurance premium
Workers’ Compensation form
update bank account signatures
Attend training
nonprofit filings
(990, 199, RRF-1)
1. Collect the financial records (see audit checklist)
Summary of Audit Steps
2. Audit the financial records
3. Make appropriate inquiry of treasurer as needed for clarification
4. Meet with president and financial officers to discuss recommendations and corrections
5. Complete and sign the Audit Report
6. Present to the board and to the association
Collect the financial records (see audit checklist):
• ledger of income and disbursements
Audit Checklist
• checkbook registry
• bank statements
• treasurer’s reports
• cash verification forms
• payment authorization forms (w/ receipts, invoices, etc.
• meeting minutes (board and association meetings)
Verify STARTING BALANCES
• on bank statements
Audit Checklist
• on treasurer’s reports
• on check registry
• on budget
Check BANK STATEMENTS
• reconciled monthly
Audit Checklist
• match treasurer’s reports
• match ledger
• match check registry
Check MEMBERSHIP and DUES
• verify amount collected
Audit Checklist
• verify amount remitted to council or district PTA
Check MINUTES REPORTS
• all expenditures approved in board minutes
Audit Checklist
• all expenditures approved/ratified in association minutes
Check AUTHORIZATIONS FOR PAYMENT
Check CASH VERIFICATION FORMS and bank deposits
Check TREASURER REPORTS
Verify that taxes have been filed.
Audit Report
Fill in the Audit Report form.
Present the report to the association. Any association concerns should be addressed confidentially by the board.
Present the report to the board and answer questions as needed.
Paying a contractor
2. Certificate of Insurance
1. W-9
3. 1099-MISC
Paying Workers
Paying an employee
2. Personal Income Tax
1. Register with State EDD
3. State Disability Insurance
Paying Workers
Paying an employee
5. Unemployment Insurance
4. Employment Training Tax
6. Payroll Tax Deposit
Paying Workers
Paying an employee
8. Social Security
7. Federal Income Tax
9. Medicare Tax
Paying Workers
Paying for a school staff position
1. Deposit funds with the school district
2. Fiduciary Agreement form
Paying Workers
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