Finance TrainingPreparing for

the Audit

PVP CouncilNovember 13, 2015

CAPTA.org Toolkit

• Your Best Resource!• Start at CAPTA.org• PTA LEADERS• Run Your PTA• Toolkit• Finance

• If you have difficulty finding information, contact your PTA President with questions…

Audit Report

New Audit Periods• July 1-December 31

• Begin work in January as soon as the December Bank Statement is available• Approve the report at the Exec Board meeting in January or February• Adopt the audit at the February or March Association meeting• Copies sent to Council by the March Council Meeting

• January 1-June 30• Begin work as soon as the June Bank Statement is available• Approve the report at the Exec Board meeting in August or September• Adopt the audit at the September Association meeting• Copies sent to Council by the October Council Meeting

Recording Secretary Finance Duties

• Sign all Payment Authorization Forms• Record Financial Reports• Treasurer report info: beginning and ending balance, total

deposits and total expenses• Financial Secretary report info: total of all deposits• Motions to adopt or approve (in minutes)• Check Ratifications • Release of Funds• Audit Report• Budgets• Annual Financial Report • Budget Adjustments• Budget Authorizations (motion to overspend)

Ratification of Checks

• All checks must receive approval from the membership.

• A motion to approve a check is done before the check is written.

• A motion after the check is written is “ratified”.• A report needs to show: date, check number, payee,

amount and budget category. Could be a part of the treasurer’s report or a separate report.

• A motion to approve/ratify a check must:• Include the check numbers and the total amount.• Must be written in the minutes.

Handling PTA Money

• Deposit money as soon as possible!• NEVER let money go home with anyone…• Money needs to be secured overnight:• Make arrangement for use of School safe• Document amount prior to putting into School safe• Place in sealed envelope signed by a school administrator • Verified by TWO authorized PTA representatives

Cash Verification Form

• Must be used when counting any money for the PTA!• TWO PTA members must count the money• One should be a Officer or a Chair• Both need to sign the Cash Verification Form• Must NOT be Blood Related, Married, or Live Together

• Financial Secretary Responsibility• Sign Cash Verification Form to verify the amount received is

what is documented on the form• After deposit, attach a copy of the deposit slip to the Cash

Verification Form

Deposits

• Financial Secretary• Copy of Deposit Slip to Treasurer• Report of Budget Categories for Each Deposit

• Please share in order for Treasurer to have time to place information in Treasurer’s Report

• Work with your Treasurer to discuss a Date Schedule

Financial Secretary Report

• List deposits separately• Include breakdown of budget categories associated with

deposit• Include any electronic deposits (if they are not included in

the treasurer’s report)• Some unit’s include bank interest

• Total of deposited amount• Should always match the deposits listed on the

treasurer’s report.

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Financial Secretary Report

• Report is read at Executive Board and Association Meetings each month• Report can be emailed to each Executive Board Member• Copies available at Association Meetings• Copy given to Recording Secretary, Treasurer, EVP, and

President• No Motion Necessary! • Recording Secretary will attach a copy of report to minutes• Must show that report was read during meeting

Treasurer’s Report

• Complete monthly• Includes:• Beginning and Ending balance• List of Outflows (expenses)• Deposits from Financial Secretary• Total of Inflows and Outflows• Include All Bank Accounts • One Complete Total

Treasurer’s Report

• Report is read at Executive Board and Association meetings each month• Report can be emailed to each Executive Board member• Copies available at Association meetings• Copy given to Recording Secretary, EVP, and President• Copy emailed to PV Council treasurer

• No Motion Necessary! • Recording Secretary will attach a copy of report to minutes• Must show that report was read during meeting

Gathering Audit Information:Treasurer’s Duties

• Treasurer’s reports• Meeting minutes (Exec Board and Association)• Payment Authorization forms with receipts• Copy of tax filings (IRS, State, Charitable Trust) and annual

report – Just for mid year (January) audit.• Bank Statements and reconciliations• Copies of deposits slips and cash/deposit verification forms.• Checkbook and checkbook register. • The entire checkbook. • Do not take out checks to use while books are with the auditor.

Payment Authorization Forms

• PRIOR to a check being written, must have President or EVP and Recording Secretary signature

• Payment Authorization Forms must also have the ORIGINAL receipt attached for reimbursement

• Balance on the ORIGINAL receipt should be $0 to show payment

• Each check should have it’s own authorization form• Check Signers should not sign their own form or their

own check.

Bank Statements

• Mailed to the school address• Have outside of the envelope and statement signed and

dated by a non-check signer who is an elected officer• Maintain record of images of checks • ALL needed for your audit!

Gathering Audit Information:Auditor’s Duties

• Last Audit Report (if you don’t have a copy, ask the recording secretary. If all else fails, ask the council auditor)

• Copies of any committee reports (ask recording secretary or president if you don’t have copies)

• Copies of contracts (ask recording secretary or president if you don’t have copies)

• Sticky notes for marking pages to be corrected• Red pen and/or pencil• Blue pen. Hint: sign final report in blue ink so you can tell

the original from copies

Audit Report

New Audit Periods• July 1-December 31

• Begin work in January as soon as the December Bank Statement is available• Approve the report at the Exec Board meeting in January or February• Adopt the audit at the February or March Association meeting• Copies sent to Council by the March Council Meeting

• January 1-June 30• Begin work as soon as the June Bank Statement is available• Approve the report at the Exec Board meeting in August or September• Adopt the audit at the September Association meeting• Copies sent to Council by the October Council Meeting

Audit Report

• Completed for each bank account• Should Contain• Beginning and Ending Balance• IRS EIN number (found in your By-Laws)• Attach Recommendations • List of Outstanding Checks and Outstanding Deposits• Complete and Attach the Audit Checklist

Audit Report

• Do not write in the Audit Adoption Date until approved by the Association

• Present to the Executive Board, then approved• At Association Meeting:• “I have examined the financial records of the treasurer of XXX PTA for

the period of (beginning and ending date) and find them to be:• Correct• Substantially correct with the following recommendations• Partially correct with more procedures• Incorrect

• “I move that the audit report for the period of (beginning and ending date) be adopted.”

Audit Report

• Signed Audit Report given to:• Recording Secretary• President• Executive Vice President• Treasurer• 2 Copies to PV Council Auditor

Conflict Resolution

• We are all in this together• Auditor’s job is to find the mistakes, it doesn’t mean that

the other finance team members are not doing their jobs• Communication can help reduce conflict.• Ask for help if you can’t find an answer or don’t know

how to handle a situation• Ask your PTA president or EVP• Contact the council auditor (kapplewhite@hotmail.com)

Thank You

• Council Treasurer: Tarrah Vierra Lambert• tvl@rvlscore.org

• Council Financial Secretary: Wendi Gilchrist• cagirlsdadanddog@gmail.com

• Council Auditor: Katie Applewhite• kapplewhite@hotmail.com

• Council Training Chair: Nancy Shafer• busterthecatshafer@gmail.com