TREASURER. Information For Your Whole Board

Transcription

1 TREASURER Information For Your Whole Board 2017

2 Treasurer For Your Whole Board TABLE OF CONTENTS Basics Budgeting IRS Reminders 4 The PTA Audit 5 Tax Filing Information

3 BASICS

4 Overview of Responsibilities Current treasurer holds all financial records Adopting and Maintaining a Budget Paying Membership Dues Purchasing Insurance Deposit and Disbursement of Money Attend all PTA meetings, bringing monthly Treasurer Reports and books End of Year Financial Review Filing Taxes with the IRS Basics 1

5 Good Standing What?? Officer Update Form completed online before June 15 Membership Dues paid before December 1st Bylaws current (revised every 5 years) Audit completed every year and copy sent to Virginia PTA IRS 990 completed every year and confirmation sent to Virginia PTA Basics 1

6 Out with the Old, In with the New Outgoing Treasurer Works with President to arrange audit Completes Annual Treasurer s Report Incoming Treasurer Read your bylaws and standing rules (if any) Familiarize yourself with your responsibilities Work with President to ensure audit is completed Change names on bank acct Take possession of records and checkbook after audit is complete Present audit report to Board members Present audit report to General Membership File taxes with IRS Send copies of audit and IRS 990 to Virginia PTA Basics 1

7 BUDGETING

8 Budget Responsibilities Planning with a Budget Committee over summer Review by your Board before your General Membership meeting Approval by your General Membership Maintaining the budget and sharing budget year-to-date reports with your board and membership Keep in mind any changes above $300 must be approved by your General Membership Budgeting 1

9 Budget Planning - Expenses Look at what was spent last year (last 2 to 3 years is helpful) What activities will you do again? What new activities do you want to do? Administrative Costs and Training Start-Up costs for next year Summer Carryover Budgeting 1

10 Budget - Income How have we raised money in the past? What worked and didn t work? Any new ideas? BE REALISTIC! Budgeting 1

11 Budget Review and Approval Present it to the Executive Board and make adjustments (if prepared by committee). Recommend posting/providing budget in advance to your General Membership; however, there is no requirement that it has to be 30 days. May post on website or copies in school office. Present it to the General Membership for approval. Budgeting 1

12 Is it in the Budget? Only approved expenses can be paid Every item of spending has to be taken from a line item in your adopted budget If an expense is in the adopted budget, it can t be voted against Budget changes or additions (over $300) must be approved by 2/3 vote at a general meeting Everything must have a receipt/invoice All money out and in must be documented!! Always use a Reimbursement Form Reporting 3

13 Monthly Reports Provided at each meeting: Balance from last meeting Plus the itemized income Less the itemized expenses Current balance Budget vs. Actual Reporting 3

14 IRS REMINDERS

15 IRS 501(c)(3) Organizations All PTAs are set up as 501(c)(3) organizations, which means: We are sales tax exempt (optional) and income tax exempt Donations by our donors are treated as charitable contributions for tax purposes We must be organized and operate according to the mission set forth in our bylaws: Advocate for the health, education and welfare of all children. Non-sectarian Non-commercial Non-partisan --Cannot engage in political activity --CAN engage in insubstantial amount of lobbying Resources cannot be used for private benefit IRS Reminders 1

16 IRS Requirements PTAs are non-profit, tax exempt 501 (c)(3) organizations; as such we are required to: File a tax return (990EZ or N-postcard) each year Follow the 3-to-1 Rule of three programs for every one fundraising activity Spending must fall within these three categories: educational, operational and charitable IRS Reminders 1

17 THE PTA AUDIT

18 What IS the PTA Audit?? Our audit process is actually a financial review and it is not a pass or fail process. The purpose is to ensure that our PTAs are following proper financial procedures and are practicing financial responsibility; if they are not, this process helps them get back on track. It is a two part process: 1) The treasurer and president for this audit period gather your records and complete the financial management checklist. 2) Your audit committee or auditor review that checklist and complete the actual financial audit. Once complete, this Audit Report is reviewed by your Executive Board, adopted by your General Membership and a copy is sent to Virginia PTA. The PTA Audit 2

19 When Is An Audit Done? Before a new treasurer takes over At the end of each fiscal year (completed within a month of year-end) The Audit Committee Three people: For the audit period, cannot be signers on the unit s account(s). Cannot be family members of signers. May come from your board or your membership OR An accountant or person with excellent working knowledge of PTA accounting procedures. The PTA Audit 2

20 Completing the Audit Your Treasurer and President complete the Financial Management Checklist Your Audit Committee (or auditor) complete the Financial Management Checklist Your Audit Committee (or auditor) complete the Audit Report on page 8. The PTA Audit 5

21 Audit Report Adoption Auditor or auditing committee all sign and date the report at the time it is filled out. Presented to the executive board after completion; new treasurer can now take over. Oral audit report at the next general membership meeting. President calls for adoption of the audit report by vote of the general membership. This is the actual acceptance of the monthly financial reports that have been put on file. All dates are filled in and the current president and treasurer sign. Original audit stays in your treasurer records for that year. Submit copy of audit to Virginia PTA state office. Make a copy for your new year treasurer books. The PTA Audit 2

22 TAX FILING INFORMATION

23 Virginia Sales Tax Exemption PTAs may obtain an application on-line at to receive a copy of the Sales and Use Tax Certificate of Exemption letter. Details of what information you will need are found in our Leadership Toolkit in the Financial Management section. This is optional! Tax Filing Information 3

24 IRS Form 990 All units must file 990, 990-EZ, or 990-N or the e-postcard by the 15th of the 5th month after the end of fiscal year. Instructions for filing the 990-EZ are available at Submit copy of your accepted 990 ( receipt for 990-N is acceptable) to Virginia PTA state office as required Tax Filing Information 3

25 RESOURCES

26 NATIONAL PTA RESOURCES General PTA Info E-learning Courses (Treasurer, Board Basics) Back-to-School Kit includes a Finance section with a PTA Treasurer Quick Reference Guide Also includes sections for President, Membership, Programs, Fundraising, Advocacy and Communications Resources 5

27 VIRGINIA PTA RESOURCES Quick Links for forms Home page for news PTA Leaders Training Library: Leadership Toolkit Support for Your PTA Treasurers this is your spot for helpful tools! Resources 5

28 Resources Summary our Virginia PTA website our Virginia PTA office Council PTA District PTA our Treasurer National PTA website and Back-to-School Kit Resources 5

29 THANK YOU