Dollars and Sense. The Role of the Treasurer

Transcription

1 Dollars and Sense The Role of the Treasurer

2 What do I need to know? Your PTA s tax number, formally called the Employer Identification Number (EIN). Your PTA s bank and bank account number. The end of your fiscal year is June 30. This is a key date for keeping financial records. The location of past 990/990EZ forms, the annual tax return required by the IRS.

3 Six Rules to Make Your Job Easier Pay every bill, no matter how small by check. Never give anyone a pre-signed blank check or one made out to cash. Count money received with the person presenting it. Issue receipts for all money received. Deposit money promptly in the bank. Present accurate reports at all monthly meetings.

4 What am I responsible for? Keeping record of all income and expenses for the PTA Providing a treasurer s report at each PTA meeting Working with a committee to develop an annual budget for the PTA Preparing the annual audit and all other monthly reports Depositing money in the PTA checking account Co-signing all PTA checks Assisting with the July transfer of PTA financial records

5 Responsibilities Remit state and national membership dues MONTHLY. Insure that your annual PTA insurance is paid for prior to September 30 and documentation is provided to VCCPTA. Submit your IRS e-postcard prior to November 15 for the school year and provide a copy of the acceptance to VCCPTA.

6 What to do if money is missing? Inform your school principal. Contact either Jennifer Dietz, VCCPTA President, or Melissa Shaw, VCCPTA Treasurer. Do not make any accusations. Document all allegations. Gather facts and documents. Notify your bank of any wrong doing and consider your options. Do not accept any restitution on your own (for any amount). Accepting any amount could void any potential criminal investigations and remove any legal recourse for restitution. Meet with VCCPTA representatives to determine what course of action should be taken.

7 Dues State and National PTA dues are $3.50 per member. Keep all state and national portions of dues recorded separately from local funds. This is not to be included as part of the unit s funds to be used for expenses. Send all state and national dues to the state office as collected MONTHLY. All dues for the current school year must be submitted to the state office no later than March 31. Make checks payable to Florida PTA and mail to: Florida PTA State Office 1747 Orlando Central Parkway Orlando, FL 32809

8 Insurance It is School Board Policy that all extra-curricular organizations have general liability insurance and the fidelity bond. It is recommended that your fidelity bond coverage reflect one year s operating budget. Other insurance options are available: accident medical, property, and officers liability. Your annual policy must be renewed no later than September 30.

9 IRS e-postcard A PTA whose gross receipts are less than $50,000 each year must file a Form 990-N (e-postcard). The e-postcard must be filed electronically and can be filed at Otherwise, the PTA has to file a 990-EZ/990 form. The term gross receipts means ALL PTA revenue, excluding any money carried over from the previous year and State and National dues collected and remitted. When a PTA collects $10,000 in a candy sale, bue pays $5,000 to the candy vendor, the entire $10,000 is considered gross receipts. What forms are used? As long as a PTA s yearly gross receipts are over $50,000, but less than $200,000, it should file Form 990EX and Schedules A and G.

10 PTA Funds vs. Schools Funds Do not maintain PTA funds in school internal accounts. School funds are public monies and PTA funds are private monies. There is NOT a problem in the giving of PTA money to the school to purchase an item the PTA is donating for the school or providing funds for the school to sponsor clubs or afterschool programs. All monies donated to the school should be designated for a specific purpose.

11 Budgets A budget is not only a guide, but also a working document. It shows a plan for obtaining funds, for spending those funds to meet the needs of the unit s yearly activities and also should allow adjustments when those estimates are not exactly accurate. Format and naming of line items is at the board s discretion. Must be approved by the general membership. Budget amendments must be approved by the general membership.

12 Sample Budget

13 Why should we include interim summer funds? You are not permitted to spend funds from July 1 until the budget is approved for the following school year. By budgeting for summer expenses in the previous budget, the board is permitted to spend a small predetermined amount of money at the beginning of the new school year. A Welcome Back Breakfast for teachers during pre-planning would be one example.

14 What about the school s Tax ID? PTA s are NOT automatically tax-exempt because they are related to the public school. The only LEGAL way for your PTA to use the school s tax ID number would be if your PTA operates as a committee or club entirely under the school s direct control. If your group s money is held in a bank account owned by the school, using the school s EIN, then your PTA is a committee of the school. Florida PTA does not recommend using the school s bank account or tax ID number.

15 PTAs and Sales Tax Your PTA is not required to have a sales tax exempt number; however, you are entitled to one if you choose. You may either call the Florida Department of Revenue, and ask them to send you a DR-5 (Consumer Certificate of Exemption Application) or you may download the form at Check the 501 (c) (3) box, NOT the PTA box. This form can also be located on VCCPTA s website. Your tax exempt form must be renewed every five years.

16 When to Pay Sales Tax Even if you are tax exempt, the PTA is responsible for paying sales tax on all resale items. PTAs have been granted the privilege of paying sales tax to the vendor on the wholesale cost of any items (including bookstores if operated within the school). Any other items maintained as a permanent inventory are NOT included in this privilege, such as uniforms, t-shirts, etc.

17 Treasurer s End of Year Checklist Remit all State and National dues. Pay all outstanding bills. Prepare the annual audit report. File the IRS e-postcard. Assist in adding new signers to the bank account for the upcoming school year.

18 Annual Audit Must have all original bank statements July 1 st June 30 th ending balance Are statements initialed by non check signer Tally all deposits to get income/receipts Tally all withdraws/checks to get expense Confirm check number range and if all cleared and any outstanding numbers and amounts

19 Sample Annual Audit

20 Treasurer s Procedure Book Bylaws Standing Rules Polices and Procedures National PTA ID Federal EIN Number Tax Exemption Letter Proof of Insurance Receipt Book Blank Reimbursement Forms Blank Cash Counting Verification Sheets Budget Monthly Treasurer Reports

21 Reminders You have custody of all PTA funds You are responsible for keeping a full and accurate account of receipts and expenditures Disbursements should be made in accordance with the approved budget, as authorized by the PTA Two signatures required on all PTA checks You will need to present a financial statement at every meeting You are responsible for the maintenance of the books and records Don t forget PTA accounts should be examined annually by an auditor or a committee

22 General Controls/Best Practices Paper trail for every financial transaction Maintain original copies Control and limit access Establish rules and routines Reconcile bank statement regularly; keep books and files up to date Don t be afraid or intimidated to ask questions or make inquiries!

23 Resources Florida PTA Dollars & $en$e National PTA Finance Quick Reference Guide Bylaws, Standing Rules, and Policies and Procedures VCCPTA Website

24 Questions? Melissa Shaw,