Treasurer, Part 1. Terri Lyn George

Transcription

1 Treasurer, Part 1 Terri Lyn George treasurer@pccpta.org

2 Good morning. My name is Terri Lyn George. Once again, it is my privilege to serve as your Pinellas County Council Treasurer. BUT before we get started, I have a couple of housekeeping notes: Take Groupie Now

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4 Resources You are never alone, we are here to help! Dollars and Sense, Kit of Materials www/floridapta.org Back to School Kit, E Learning Courses Leadership/Convention County Council, local trainings Peers, close local units County Council Treasurer treasurer@pccpta.org

5 I am the treasurer for my unit, now what? To begin lets follow up on a few of these items: Review treasurer resources Set up your Treasurer materials Review your Bylaws, Standing Rules and Policies and Procedures Are signatures at the bank updated (OSO) If there was a debit card to a previous treasurer/president; has it been turned in and canceled (OSO) Account passwords and log in s changed (OSO) Was the Financial Review Complete (OSO) Has the 990 form (which ever is applicable) been filed (OSO)

6 Insurance Why is it important for local units and county councils, and OSOs to have insurance? Overview: All individuals authorized to handle PTA/OSO funds should be covered by bond insurance. Just like a business, your PTA/OSO is exposed to certain risks that you may or may not be aware of. You may do everything you can to prevent something from happening to your PTA/OSO, but in reality no one can guarantee that things are going to run smoothly all of the time. PTAs/OSOs are not immune from liability. Your PTA/OSO insurance policy will protect not only the assets of the PTA/OSO and the officers/board members, but can pay attorney fees to defend you, whether the lawsuit has merit or not. There are five separate risks that your PTA/OSO needs to be aware of: General Liability Accident Medical Fidelity Bond Property Directors and Officer Liability Your Administrator and your President (or appointed representative) hopefully attended the Insurance class at the 8:00 hour this morning..

7 SAMPLES Sample Proposed Budget Proposed/Projected Summer Funds (Interim Funds) Sample Treasurer s Report 3:1 Rule Do 3 programs for every 1 fundraiser. Programs are Free or fees charged cover the cost AND they provide information. It doesn t have to be the entire, but make it at least minutes of information shared.

8 Budget Meeting BUDGET COMMITTEE & CREATING A BUDGET The Treasurer should serve as the chair of the Budget Committee. Unless your Bylaws or Standing Rules state otherwise, the officers will make up the Budget Committee. The budget committee usually meets before the school year starts to create a tentative budget for the new school year, shares the tentative budget with the board, then at the first general meeting of the year presents the budget. The budget must be adopted by the general membership before any funds are spent. Suggested items to have on hand for the budget meeting: Previous year final budget Previous year completed audit Calculators, pens Proposed calendar for planning Plan of Work, include donations for accurate accounting

9 Membership Dues Remember that membership dues are due to the state office every month with the final payment by May 1 st. You must have dues submitted for County Council award eligibility by April 1 st. This form can be found on the Florida PTA website State and National Dues Payment Form Use this form for MEMBERSHIP DUES and FOUNDER S DAY GIFTS ONLY NOT FOR ADDITIONAL MEMBERSHIP CARDS All PTA/PTSAs are legally required to send membership payments to the state office MONTHLY, as collected. State and National dues are not to be used as funds for the local unit or considered a part of the local unit s budget. As of May 1st each year, PTAs that have not paid any dues will be considered inactive and appropriate action will be taken. Any dues received after May 1st, will not be credited to the current membership year. For the Reflections Program, Scholarships and other PTA programs, dues must be paid monthly and no later than December 15 th. (This refers to membership dues NOT County Council dues, which have a separate date.) For membership reporting, the deadline for FINAL DUES PAYMENTS TO FLORIDA PTA IS MAY 1, Each person joining your local unit PTA automatically becomes a member of the state and national associations. The state portion of a member s dues is $1.25; the national portion is $2.25. Each officer receives a free subscription to the Florida PTA enewsletter and the National PTA s Our Children, as well as additional resources (sent throughout the year). SO THAT WE ACCURATELY CREDIT YOUR LOCAL UNIT PTA, PLEASE COMPLETE ALL SECTIONS ON THIS FORM. Date Submitted Membership Year (i.e., 2014/15) # of Members $3.50 each $ National PTA ID # Founder s Day Gift $ Total Amount Enclosed $ 0 County Full Name of PTA School Address President s Name President s Treasurer s Name School Telephone City Zip President s Telephone Treasurer s Telephone Treasurer s Make checks payable to Florida PTA and mail to the address below or use our ONELINE secure ACH payment service ( Florida PTA 1747 Orlando Central Parkway Orlando, FL Please DO NOT staple or tape check to this form. PLEASE NOTE: There is a $35.00 charge for returned checks. Be sure signatures and the amount is correct. Due to reporting requirements For Office use only we CANNOT refund membership over-payments. ( )

10 Best Practice in Handling Monies Only handle money with another board/chair member present. All deposits are verified and initialed by another board/chair member. If Treasurer did not make deposit, upon receiving deposit, recount and initial (remember first rule at top of slide). Never make a check payable to Cash. Make it to the board member going to bank to get an Event Bank. When redepositing the Event Bank, it is a good practice to make it a separate deposit so that it is easily identifiable.

11 Deposits Committee chair has contacted you that they have a deposit is ready and has placed it in the PTA safe Verify checks payable to PTA/OSO, signed, dated Endorse each check - For Deposit Only Complete bank deposit form (some banks offer carbon books) Document what account monies received are from (i.e. $150 PTA Membership and $300 for T-shirts) Retain bank deposit receipt for your records, many staple the deposit receipt to the deposit ticket (with copies of the checks). You will be amazed at how often you will need to refer to the checks deposited.

12 Deposits Continued To allow for more transparent accounting practices, it is advised to keep deposits separate as to the reason or the line item in your budget. (Example, funds collected for a yearbook and funds collected for membership dues should have two separate bank deposit slips.) Deposit all monies promptly in the local PTA approved bank account. NEVER deposit monies in a personal bank account or in the school account. NEVER allow the school, school clubs or other organizations to deposit money in the PTA account. If other groups deposit money through the PTA, it is as if you, as a taxpayer with a Social Security number, allow someone else to use that number. A PTA may jeopardize its tax exempt status by assisting another organization to avoid compliance with tax laws. OSO NOTE: if your OSO is no incorporated, you will NOT maintained a separate bank account, ALL monies will be deposited into your school s internal funds account. IF YOU ARE incorporated, you can maintain a single bank account under your own EIN number. When preparing the bank deposit ensure the checks are dated, signed and made payable to your PTA. Then endorse using a permanent stamp or write For Deposit Only. Ensure a Cash Count Worksheet, Cash Verification or a PTA Deposit Form signed by two people has been verified before taking the deposit to the bank (see General Controls and Best Practices: Handling Cash and Funds). Keep the receipt given by the bank and either attach it to the dual signed form, your deposit book or hold until the monthly bank statement when it arrives. See Finance Quick Reference Guide for information on Deposits and Joint Fundraising.

13 BREAK TIME We will continue in the next session with PTA Treasurers II Before we break, and stretch our legs, who has a question?

14 Reimbursements What is a reimbursement? A reimbursement is payment to an authorized person making purchases on behalf of the PTA. Before writing check confirm: authorized receipts/invoice funds are within budget funds are available and in the bank ensure reimbursement form is completely filled out and the committee name is listed original receipt is attached to the form

15 Writing Checks Do s and Don ts for PTA/OSO ALWAYS have checks signed by 2 check signers. Typically the Treasurer and the President. Make sure the reimbursement request are approved by another board member (other than the Treasurer), this is typically the President. Never sign your own check. Never sign a check for someone that lives in the same household (i.e. Don t sign a check made payable to your husband)

16 Bill Payments What is the difference between a bill payment and a reimbursement? A bill payment is a payment made to a company or program that offered services to the PTA. authorized receipts/invoice funds are within budget funds are available and in the bank The ORIGINAL BILL from the company (service provider) must be attached ensure bill payment form is completely filled out and the committee name is listed

17 Electronic Payments ELECTRONIC BANKING BEST PRACTICES Many of you may have already been offered such cards by your financial institution as a way to make banking easier. The local unit PTA s board of directors should discuss and set policy BEFORE obtaining any debit/credit/gift cards for use by the local unit PTA. Internal Controls for Electronic Banking: 1. Policies/procedures should be in writing and reviewed annually. 2. Financial responsibilities, including the monitoring of credit/debit card use should be separated between multiple people: A person(s) who does not have the authority to approve payment should review invoices for appropriate use of funds based on the pre-approved budget; 3. Bank statements and bank reconciliations should be reviewed on a monthly basis by someone who does not have the authority to approve debit/credit card purchases.

18 Electronic Payments ELECTRONIC BANKING BEST PRACTICES ~ Continued Follow all best practices for money control, IE original receipt stapled to Electronic payment form and signed by purchaser, committee chair and president Is expense an authorized expense

19 You cannot return gift cards or pre-paid credit cards, thus accounting for these items may be difficult to track (because documentation is required for both the original purchase of the card and for each purchase made with the card). Gift Cards / Pre-Paid Cards In many cases gift cards and other prepaid cards (credit cards, phone cards, etc.) are almost the same as cash, so if your board approves their use for any reason, proceed with caution as they can easily be misused if you do not have strict internal controls. BEST PRACTICES: Issue receipts for all checks and money received. Policies and Procedures should be in writing for the purchasing, distribution and use of gift cards. Do not purchase gift cards or prepaid cards unless truly needed. Do not purchase with the intent of keeping extras on hand or just because you may need them.

20 Gift Cards / Pre-Paid Cards BEST PRACTICES ~ Continued Individuals purchasing gift cards MUST submit a receipt. Any gift card purchased must have a receipt and check request form (or notation as to their intended purpose and which line of the budget the expense is applied). If gift card will be used for purchases by pre-approved committee chair or officer to purchase preapproved items for a pre-approved event, activity or purpose (such as administrative type items, newsletter printing, supplies, etc.) the person receiving the card MUST sign for the card, confirming the amount indicated on the card is accurate (usually a number to verify the card balance) and acknowledgment that receipts are needed to confirm approved items were purchased. This can be written directly on the check request form or create a separate agreement. See sample Debit/Credit/Gift Card Expense Form in Section 3: Treasurer Forms

21 Banking PTA/OSO account only (personal). Must be sent to school s address. Non Incorporated OSOs deposit monies into their school s internal funds account. They will then follow the processes and procedures in School Board policy related to receiving and distributing their funds. Incorporated OSOs maintain their own bank account. NO PTA/OSO (Inc.) monies should EVER, for ANY REASON be deposited in your personal account or school account PTAs can maintain checking, savings, CDs or other forms of bank accounts PTAs are allowed to earn interest on their bank accounts Only the board can approve a change in banks (and must be recorded in the minutes) Three signatures on file usually President, Treasurer, Vice President (exceptions) When you leave the school with a deposit, you should be going the bank in the next few hours. PTA Moines are only held in a PTA safe or secure location, never in the school safe or with the school bookkeeper. PTA must have their own lockbox/mailbox on campus that is visible by others or monitored by a camera. Limited people should have access to open. Usually the Treasurer and President.

22 Bank Statements Bank statements along with check images or cancelled checks should be reviewed on a monthly basis. If your bank will only mail one bank statement, it should be sent to a non-check signer on the account. They should receive the unopened bank statement and review the activity before passing it on to the Treasurer for reconciliation. The reviewer should be looking at checks for dual signatures, vendor names are known, fees are not excessive, appropriate documentation deposit forms and check requests with receipts, etc. then sign the statement and give it to the Treasurer. Immediately upon receiving a bank statement (either the original copy from the reviewer or from on-line access) the Treasurer should balance the ledger (books), check book and prepare a monthly report for the next meeting. It is a good practice to announce at each board meeting (and record in the minutes) which statement(s) have been reviewed by whom. Ensure that 2 non signers sign and date the bank statements after they review them Caution: Be sure to receive statements from any and all PTA accounts!

23 Balancing the Bank Statement Compare beginning balance to previous ending balance For each deposit and check listed: compare amount to documentation (form & bank receipt) check off item in bank transaction log if applicable, update in check log list, stub etc. update monthly report File paperwork

24 Mid Year Review We are in the middle of our school year. Let s review where we stand with our budget actuals vs. projections. What to look for: 1. Did any fundraiser/program come in under projection 2. Did any fundraiser/program come in over projection 3. If adjustments need to be made, do a Proposed Budget Amendment. Like the first budget, it must be approved by General Membership.

25 Preparing for the Financial Review The purpose of the annual audit or financial review (internal or external) is to certify the accuracy of the books and records of the financial officer and to assure the membership that the association s resources/funds are being managed in a businesslike manner within the regulations established for their use. By exposing the books and records for review it is an excellent chance to detect the level of internal financial controls (strong or weak). Refer to Finance Quick Reference Guide for additional information. WHEN TO AUDIT/REVIEW All PTAs/OSOs must have their financial records reviewed annually even if the Treasurer is holding the office for another year. The records also would need to be reviewed at any time the treasurer is replaced during the year. Check your PTA s bylaws for the procedure to select the person (s) to conduct the financial review.

26 Financial Review Continued The Treasurer should start verifying the financial records are in order before the end of the fiscal year (June 30). Then once the June bank statement is received, reconciled and the Treasurer s Annual Report produced then the books and financial records can be turned over to the audit or Financial Review committee. However if your gross revenue exceeds $50,000 and your unit files a 990-EZ or 990 with the IRS (Internal Revenue Service) you may choose to complete the return first, then turn over financial records to the Financial Review committee or auditor so they can review the return and schedules. Once the Financial Review is complete, the outgoing Treasurer can sign and mail the return.

27 Financial Review Continued PREPARING FOR THE AUDIT/REVIEW After the June financial report has been reconciled and Treasurer s Annual Report produced, the treasurer (no one else) should deliver the following to the Audit Committee: Copy of last year s annual financial review report Treasurer s book (ledger) Copy of the Treasurer s Annual Report Bank statements and bank deposit receipts (July 1 prior year through June 30 current year) Checkbook, cancelled and any voided checks Check Request Forms with itemized statements and receipts of bills paid Deposit Forms with applicable signatures and documentation

28 Financial Review Continued Copies of Treasurer s monthly financial reports Copies of budget and general meeting minutes that include an adopted budget as well as any Amendments approved during the year. Other material requested by the audit committee or the auditor. DURING THE AUDIT/REVIEW The outgoing Treasurer cannot write checks or make withdraws after the books are closed for an audit or review; however bank deposits may be made if needed. Basically during an audit or review they are establishing the validity of the treasurer s report and tracing figures back through original deposit slips and receipts and comparing to documentation and the bank statements. Refer to Finance Quick Reference Guide for procedures on conducting an Internal Financial Review and Additional Resources for a Sample Financial Review Form. See Section 3: Treasurer Forms.

29 FINANCIAL REVIEW IS COMPLETE WHICH 990 FORM DO WE NEED? ONCE THAT IS DETERMINED LETS FILE OUR CORRECT 990 FORM AND BE AHEAD OF THE GAME

30 FINANCIAL REVIEW AND 990 ARE COMPLETED REMEMBER TO SEND A COPY OF THE FINANCIAL REVIEW AND 990 RECEIPT TO 990@FLORIDAPTA.ORG

31 IMPORTANT DATES Sept. 30 Deadline to submit Financial Review to Florida State PTA Nov. 15 Tax Filing Deadline Dec. 1 Must have submitted Dues to State in order to submit Reflections entries May 1 State & National Dues Deadline (return any unused or voided cards) July 1 Schedule Financial Review ~RETENTION DATES~

32 Before we take QUESTIONS, We have to take a groupie

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34 THANK YOU YOU ARE READY! REMEMBER, THERE ARE ALWAYS PEOPLE AVAILABLE TO ASSIST YOU! YOU ARE NEVER ALONE! Terri Lyn George